Suretyship
- compared to guarantee, pwede diretso na kunin sayo
- considered as insurance → if made by someone doing insurance business
Yes
Characteristics of Insurance
- Ubberimae Fides - perfect good faith (both insurer and insured)
- Indemnity - recover only the amount of loss (XPN : life insurance)
- Risk Distributing Device
- Aleatory - only upon chance
- Contract of Adhesion - ready-made (doubt = in favor of insured)
- Personal - insured cannot asign his rights
- Voluntary
- Synnalagmatic / Bilateral - reciprocal obligations
Yes
Classes of Insurance
- Life (+ Microinsurance)
- Non Life
- Variable
- Suretyship
Yes
Life Insurance
- Individual Life
- Group Life
- Industrial Life → amount of benefit should be ?
maximum 500x minimum wage in Manila
Microinsurance (for the poor)
- amount of contribution should be ?
- amount of benefit should be ?
- 7.5x minimum wage in Metro Manila (non agricultural)
- maximum 1000x minimum wage in Metro Manila (non agricultural)
Metro Manila → hindi katulad sa industrial life na Manila lang
Non Life Insurance
- Marine
- Fire → natural disasters (not just fire)
- Casualty → residual (e.g. motor vehicle insurance, employer’s liability insurance)
Yes
Marine Insurance
- perils of the sea
- perils of the ship → legal liability (not actual loss)
- inland marine → river or lake
- precious stones, jewelry → whether in transportation or not
- transportation
Yes
Variable Insurance
- both insurance and investment → must be accounted for separately
- is this considered a securtiy?
No
Elements of Insurance Contract (RIP)
Insurer
- assumes the Risk (with a general scheme of risk distributing device)
Insured
- must have Insurable interest
- must pay Premium
Yes
Insurable Interest
- ayaw mo rin mangyari
For Life Insurance
- himself, wife, and children (whether legit or not)
- someone he depends on (sugar daddy)
- creditor, with respect to debtor (up to amount of debt)
- executor / administrator, with respect to estate
For a wife, does she need consent if she want to insure his husband?
Who cannot enter into an insurance contract?
NOTE : Debtor’s Insolvency ≠ Insurance’s Unenforceability
- No need, since may insurable interest siya
- Those who cannot donate to each other (since insurance is like a donation)
For Property Insurance
- with existing interest (owner, contractor of building)
- with an inchoate interest (shareholder)
- with an expectancy coupled with existing interest
NOTE : dapat may pecuniary interest → may insurable interest
Yes
Insurable Interest
Life or Property
- unlimited in value (XPN : creditor, with respect to debtor)
Life
Insurable Interest
Life or Property
- must have insurable interest
(1) insurance takes effect
(2) loss happen
Property
- Life → only need to have insurable interest when
(1) insurance takes effect
Insurable Interest
Life or Property
- must have legal basis
Property
- Life → no need for legal basis
Insurable Interest
Life or Property
- beneficiary → must have insurable interest
Both
- XPN : Life Insurance → if secured himself = kahit sino pwede maging beneficiary
Insurable Interest for Mortgaged Property
- for Mortgagor → up to value of object (debtor)
- for Mortgagee → up to amount of debt (creditor)
Loss Payable Mortgage Clause
- Mortgagor insured a property
(1) assign the policy to mortgagee
(2) beneficiary si mortgagee
Effect → both are parties to insurance contract
- required yung isa, pwedeng gawin ng isa
- navoid ng isa, void na rin sa isa
Yes
interest must be in the same person
(1) property
(2) insurance
if not → suspended, until maging same person ulit
EXCEPTIONS (hindi masususpend kahit hindi same person)
- after contingency → tsaka pa lag nag change interest
- several distinct things → jointly (hindi solidarily)
- by will of insured
- several partners → jointly (hindi solidarily)
- intention → nasa kontrata
Yes
- if expressly pinagbawal sa contract → void
e.g. bawal talaga ialienate yung property
Insurance is a formal contract. True or False?
Upon perfection of insurance contract, it is already binding. True or False?
- false → consensual, mere submission = no consent
- false → upon payment of premiums (since premium is isa sa elements)
EXCEPTIONS (binding na kahit di pa nagbayad ng premiums)
1. grace period / extension
2. installment (napagkasunduan na valid kahit installment pa lang)
3. estoppel
Rescission of Insurance Contract (life or non life)
- ubberimae fides
- Material Concealment → whether intentional or not
- Material False Representation → whether oral or not, whether on or before
- Material Breach of Warranty → whether expressed or not, whether past, present or future
Immaterial Breach of Warranty → no effect (XPN : stipulated)
Rescission of Insurance Contract (non life only)
- ubberimae fides
- non payment of premium
- acts increasing the hazard against
- physical changes in property → uninsurable
- other insurance coverage → earnings
Yes
Claims Settlement
Life Insurance
- with maturity → immediately upon maturity
- upon death → within ?
Property Insurance
- ascertainment of loss → within ?
- no ascertainment of loss → within ?
Delay → twice the legal interest
- within 60 days (after presentation of proof)
- within 30 days (after presentation of proof)
- within 30 days (after expiration of 60 days)
Prescription of Insurance Contract
- General Rule : ?
- XPN : atleast 1 year from time of loss. True or False?
- 10 years
- false → from time of first denial
Subrogation for Insurance Contract
- natural, no need for stipulation (legal effect of payment)
- not applicable to life insurance
Yes
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