THE INSURANCE CODE PREMIUM- the consideration paid to an insurer for
undertaking to indemnify the insured against a
PD 612- December 18, 1974
specified peril.
PD 10607- August 15, 2013
Non-payment of the first premium- prevents the
Contract of insurance code- insurance code, Sec. 2 [a] contract from becoming binding notwithstanding the
acceptance of the application or the issuance of the
1. An Agreement; policy.
2. Whereby one undertakes for a consideration;
3. To indemnify another against loss, damage or Insurance as a Risk-Distributing Device
liability
A contract of insurance is a primarily a risk-
4. Arising from an unknown or contingent event.
distributing device, a mechanism by which all
Contingent Event members of a group exposed to a particular risk
contribute premiums to an insurer. From these
- An unknown past event is one which had contributory funds are paid whatever losses occur due
already happened, but one is unaware if it to exposure to the peril insured against.
happened or not.
- A past event may be designed event only in Parties to an IC
cases where it has happened already but the
a. INSURER
parties do not know about it.
The party who assumes or accepts the risk of
Elements of Insurance Contract loss and undertakes for a consideration to
indemnify the insured or to pay him a certain
a. Consent sum on the happening of a specified
b. Object/Subject-matter contingency or event;
c. Cause
Elements of Insurance Contract May be:
o A foreign or domestic company or
a. The insured must possess an interest of some corporation; or
kind susceptible of pecuniary estimation, o A partnership or an association
known as insurable interest.
b. The insured is subject to a risk of loss through INSURER must have:
the destruction or impairment of that interest o Sufficient capital at least 1B
by the happening of designated perils; o Certificate of Authority from the
c. The insurer assumes the risk of loss; insurance commission which should
d. Such assumption is part of a general scheme be renewed every 3 years.
to distribute actual losses among a large b. INSURED- The person in whose favor the
group of persons bearing somewhat similar contract is operative and who is indemnified
risks; against or is to receive a sum upon the
e. As consideration for the insurer’s promise, the happening of a specified event.
insured makes a ratable contribution called
premium, to a general insurance fund. INSURED must:
Insurable Interest o Be competent to enter into a contract;
o Possess an insurable interest in the
A person is deemed to have a insurable interest in the subject of the insurance; and
subject matter insured where he has a relation or o Not be a public enemy ( citizen or
connection with or concern in it that he will derive subject of a country with whom the
pecuniary benefit or advantage from its preservation Philippines is at war)
and will suffer pecuniary loss or damage from its
destruction, termination or injury be the happening of Rule for Married Persons
the event insured against. The consent of the spouse is NOT necessary for the
validity of an insurance policy taken out by a married
person on his or her life or that or his or her children
or that of her husband
undertaking to indemnify the insured against a
PD 612- December 18, 1974
specified peril.
PD 10607- August 15, 2013
Non-payment of the first premium- prevents the
Contract of insurance code- insurance code, Sec. 2 [a] contract from becoming binding notwithstanding the
acceptance of the application or the issuance of the
1. An Agreement; policy.
2. Whereby one undertakes for a consideration;
3. To indemnify another against loss, damage or Insurance as a Risk-Distributing Device
liability
A contract of insurance is a primarily a risk-
4. Arising from an unknown or contingent event.
distributing device, a mechanism by which all
Contingent Event members of a group exposed to a particular risk
contribute premiums to an insurer. From these
- An unknown past event is one which had contributory funds are paid whatever losses occur due
already happened, but one is unaware if it to exposure to the peril insured against.
happened or not.
- A past event may be designed event only in Parties to an IC
cases where it has happened already but the
a. INSURER
parties do not know about it.
The party who assumes or accepts the risk of
Elements of Insurance Contract loss and undertakes for a consideration to
indemnify the insured or to pay him a certain
a. Consent sum on the happening of a specified
b. Object/Subject-matter contingency or event;
c. Cause
Elements of Insurance Contract May be:
o A foreign or domestic company or
a. The insured must possess an interest of some corporation; or
kind susceptible of pecuniary estimation, o A partnership or an association
known as insurable interest.
b. The insured is subject to a risk of loss through INSURER must have:
the destruction or impairment of that interest o Sufficient capital at least 1B
by the happening of designated perils; o Certificate of Authority from the
c. The insurer assumes the risk of loss; insurance commission which should
d. Such assumption is part of a general scheme be renewed every 3 years.
to distribute actual losses among a large b. INSURED- The person in whose favor the
group of persons bearing somewhat similar contract is operative and who is indemnified
risks; against or is to receive a sum upon the
e. As consideration for the insurer’s promise, the happening of a specified event.
insured makes a ratable contribution called
premium, to a general insurance fund. INSURED must:
Insurable Interest o Be competent to enter into a contract;
o Possess an insurable interest in the
A person is deemed to have a insurable interest in the subject of the insurance; and
subject matter insured where he has a relation or o Not be a public enemy ( citizen or
connection with or concern in it that he will derive subject of a country with whom the
pecuniary benefit or advantage from its preservation Philippines is at war)
and will suffer pecuniary loss or damage from its
destruction, termination or injury be the happening of Rule for Married Persons
the event insured against. The consent of the spouse is NOT necessary for the
validity of an insurance policy taken out by a married
person on his or her life or that or his or her children
or that of her husband
