Insurance Code

• What is the title of Republic Act No. 10607?

  The Insurance Code
• What is the purpose of Republic Act No. 10607?

  To strengthen the insurance industry and amend previous insurance laws
• What does Section 1 of the Insurance Code state?

  Presidential Decree No. 612 is further amended and shall be known as 'The Insurance Code'
• What is a contract of insurance as defined in the Insurance Code?

  An agreement to indemnify another against loss, damage, or liability from an unknown or contingent event
• Under what condition is a contract of suretyship considered an insurance contract?

  If made by a surety doing an insurance business
• What does "doing an insurance business" include according to the Insurance Code?

  Making insurance contracts, surety contracts, and recognized reinsurance business
• How does the Insurance Code define the term "Commissioner"?

  As the Insurance Commissioner
• What types of events can be insured against according to Section 3?

  Any contingent or unknown event that may damage a person with an insurable interest
• Is the consent of a spouse necessary for an insurance policy taken out by a married person?

  No, it is not necessary
• What happens to the rights in an insurance policy upon the death of the original owner?

  They automatically vest in the insured unless otherwise stated in the policy
• Who has an insurable interest in their own life and health according to Section 10?

  Every person has an insurable interest in their own life and health
• What is the definition of insurable interest in Section 13?

  Any interest in property that may be damaged by a contemplated peril
• What types of interests can constitute an insurable interest in property as per Section 14?

  Existing interest, inchoate interest, or expectancy coupled with an existing interest
• What is the extent of a carrier's insurable interest according to Section 15?

  To the extent of their liability but not exceeding the value of the property
• What is not considered insurable according to Section 16?

  A mere contingent or expectant interest not founded on an actual right
• How is the measure of an insurable interest in property determined according to Section 17?

  By the extent to which the insured might be damaged by loss or injury
• What must exist for a contract of insurance on property to be enforceable according to Section 18?

  Some person having an insurable interest in the property
• When must an interest in property exist according to Section 19?


  When the insurance takes effect and when the loss occurs
• What happens to the insurance if there is a change of interest in a thing insured without a corresponding change in the insurance according to Section 20?

  It suspends the insurance to an equivalent extent
• How does a change of interest after an injury affect the right to indemnity for the loss according to Section 21?

  It does not affect the right of the insured to indemnity for the loss
• What does Section 22 state about changes of interest in distinct things insured by one policy?

  It does not avoid the insurance as to the others
• What happens to an insurance policy upon the death of the insured according to Section 23?

  The interest in the insurance passes to the person taking the interest in the thing insured
• What does Section 24 state about the transfer of interest among partners or joint owners?

  It does not avoid the insurance even if agreed that it shall cease upon alienation
• What stipulations in an insurance policy are considered void according to Section 25?

  Stipulations for payment of loss without interest or policies executed by way of gaming or wagering
• What is defined as concealment in Section 26?

  A neglect to communicate what a party knows and ought to communicate
• What rights does concealment grant to the injured party according to Section 27?

  The right to rescind a contract of insurance
• What must each party to a contract of insurance communicate according to Section 28?

  All material facts within their knowledge that the other party does not have means to ascertain
• What happens if one party intentionally omits information proving the falsity of a warranty according to Section 29?

  The insurer is entitled to rescind the contract
• What types of information are parties not bound to communicate according to Section 30?

  Information the other party knows, ought to know, or waives communication about
• How is materiality determined according to Section 31?

  By the probable and reasonable influence of the facts on the party's estimate of the contract's disadvantages
• What must each party to a contract of insurance know according to Section 32?

  All general causes open to inquiry that may affect the political or material perils contemplated
• How can the right to information of material facts be waived according to Section 33?

  By the terms of insurance or neglect to inquire about such facts
• What information about the interest of one insured need not be communicated according to Section 34?

  Unless in answer to an inquiry
• What is the nature of a representation in a contract of insurance according to Section 36?

  A representation may be oral or written
• When can a representation be made according to Section 37?

  At the time of or before the issuance of the policy
• How is the language of a representation interpreted according to Section 38?

  By the same rules as the language of contracts in general
• What is the status of a representation regarding the future according to Section 39?

  It is deemed a promise unless stated otherwise
• Can a representation qualify an express provision in a contract of insurance according to Section 40?

  No, but it may qualify an implied warranty
• When can a representation be altered or withdrawn according to Section 41?


  Before the insurance is effected
• What must a representation refer to according to Section 42?

  The date on which the contract goes into effect