Scribd Logo
Upload

Welcome to Scribd!

  • 22 views

    Section 25 of Insurance Code

    Uploaded by

    Ber
    The document discusses insurable interest in insurance law. It defines insurable interest as having a relationship where the death, disability, or injury of another person would result in economic or emotional harm. For property insurance, an insurable interest means being economically impacted by damage or loss of the insured property. The document outlines who can have an insurable interest in someone's life according to Philippine law, such as oneself, spouse, children, those relied on for support, and those with a pecuniary interest or legal obligation. Lack of insurable interest makes an insurance policy void as it would be akin to gambling.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Section 25 of Insurance Code

    Uploaded by

    Ber
    22 views1 page
    The document discusses insurable interest in insurance law. It defines insurable interest as having a relationship where the death, disability, or injury of another person would result in economic or emotional harm. For property insurance, an insurable interest means being economically impacted by damage or loss of the insured property. The document outlines who can have an insurable interest in someone's life according to Philippine law, such as oneself, spouse, children, those relied on for support, and those with a pecuniary interest or legal obligation. Lack of insurable interest makes an insurance policy void as it would be akin to gambling.

    Original Description:

    Provisions

    Original Title

    Provisions

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses insurable interest in insurance law. It defines insurable interest as having a relationship where the death, disability, or injury of another person would result in economic or emotional harm. For property insurance, an insurable interest means being economically impacted by damage or loss of the insured property. The document outlines who can have an insurable interest in someone's life according to Philippine law, such as oneself, spouse, children, those relied on for support, and those with a pecuniary interest or legal obligation. Lack of insurable interest makes an insurance policy void as it would be akin to gambling.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views1 page

    Section 25 of Insurance Code

    Uploaded by

    Ber
    The document discusses insurable interest in insurance law. It defines insurable interest as having a relationship where the death, disability, or injury of another person would result in economic or emotional harm. For property insurance, an insurable interest means being economically impacted by damage or loss of the insured property. The document outlines who can have an insurable interest in someone's life according to Philippine law, such as oneself, spouse, children, those relied on for support, and those with a pecuniary interest or legal obligation. Lack of insurable interest makes an insurance policy void as it would be akin to gambling.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Insurance Law - October 16, 2018

    d. Third Party – See case of Heirs of Loreto Maramag vs. Eva Verna De Guzman Maramag

    e. Trustee or Agent Procuring Insurance


    When the description of the insured in a policy is so general that it may comprehend any person or any class of persons, only he who can show
    that it was intended to include him, can claim the benefit of the policy. (Section 56 of Insurance Code)

    f. Partner procuring Insurance


    To render an insurance effected by one partner or part-owner, applicable to the interest of his co-partners or other part-owners, it is necessary
    that the terms of the policy should be such as are applicable to the joint or common interest. (Section 55 of Insurance Code)

    g. Rights of Assignee of Insurance


    A policy of insurance upon life or health may pass by transfer, will or succession to any person, whether he has an insurable interest or not, and
    such person may recover upon it whatever the insured might have recovered. (Section 184 of Insurance Code – Life Insurance)

    The mere transfer of a thing insured does not transfer the policy, but suspends it until the same person becomes the owner of both the policy and
    the thing insured. (Section 58 of Insurance Code - Rule in Property Insurance)

    VIII. Insurable Interest

    a. Concept
    i. In Life Insurance
    - The relationship of the insured with the one insured, so that the death, disability, or injury of the insured will result in
    emotional and/or economic dislocation of the insured.
    - There is an interest by the insured in seeing to it that the life, health or economic capacity of insured is not diminished.
    ii. Property Insurance
    - The interest of the insured over the object insured so that the person will be economically damnified by the damage or loss
    of the object insured.

    Every interest in property, whether real or personal, or any relation thereto, or liability in respect thereof, of such nature
    that a contemplated peril might directly damnify the insured, is an insurable interest. (Section 13 of Insurance Code)

    b. Effect of lack of Insurable Interest


    - When there is no insurable interest the policy is akin to a wager in gambling and is void.

    Every stipulation in a policy of insurance for the payment of loss whether the person insured has or has not any interest in the property
    insured, or that the policy shall be received as proof of such interest, and every policy executed by way of gaming or wagering, is void.
    (Section 25 of Insurance Code)

    c. Insurable Interest in Life Insurance


    - Generally, the persons whose life he has insurable interest are: (Section 10 of Insurance Code)
    ii. His own life (Section 10a)
    iii. Life of persons to whom he has blood relations (namely his spouse, his children)(Section 10a)
    a) Cases
    iv. A person for whom he relies on for support, education or a person to whom he has pecuniary interest on. (Section 10b)
    a) Creditor
    b) Mortgage Redemption Insurance
    v. Any person upon whose life or estate or interest vested in him the insured depends (Section 10d)

    Section 10 of Insurance Code:


    Every person has an insurable interest in the life and health:
    (a) Of himself, of his spouse and of his children;
    (b) Of any person on whom he depends wholly or in part for education or support, or in whom he has a pecuniary interest;
    (c) Of any person under a legal obligation to him for the payment of money, or respecting property or services, of which death or illness
    might delay or prevent the performance; and
    (d) Of any person upon whose life any estate or interest vested in him depends.

    You might also like