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Insurance Notes: Insurance Parties and Insurable Interest

Insurance Notes: Insurance Parties and Insurable Interest

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Published by Jinuro San

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Published by: Jinuro San on May 11, 2011
Copyright:Attribution Non-commercial


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PARTIESInsurer- party who promises to pay incase of loss.Insured- owner of the policy whoseproperty or life is insured or who tookout the insurance over the life of persons whom he has insurableinterest.Beneficiary- third person to thecontract.Not a party to the contract unless hemade the contract upon himself.Under insurance code. Insured is theperson who applied for and to whoman insurance policy is issued to coverhis life, property or the life or propertyof other persons whose life or propertyhe has insurable interest or liability toother persons. The insured is the onewho enters into a contract with theinsurerASSURED AND OWNER – Whenanother person takes an insuranceover the life of the other, that personis the assured, the one covered is theinsured.
NCC – Contract is voidable if thepersons who contracted are withoutcapacity.
Married Women-
Can enter in to aninsurance policy without consent of the husband, under the family code.
Cannot enter into insurancecontracts (under 21 but over 18)already superseded.Life of a minor can be insured. SEC 3of insurance code
Sec. 3. Any contingent orunknown event, whether past orfuture, which may damnify aperson having an insurableinterest, or create a liabilityagainst him, may be insuredagainst, subject to the provisionsof this chapter.The consent of the husband is notnecessary for the validity of aninsurance policy taken out by amarried woman on her life or thatof her children.Any minor of the age of eighteenyears or more, may,notwithstanding such minority,contract for life, health andaccident insurance, with anyinsurance company dulyauthorized to do business in thePhilippines, provided theinsurance is taken on his own lifeand the beneficiary appointed isthe minor's estate or the minor'sfather, mother, husband, wife,child, brother or sister.The married woman or the minorherein allowed to take out aninsurance policy may exercise allthe rights and privileges of anowner under a policy.All rights, title and interest in thepolicy of insurance taken out by
1From Timoteo Aquino’s Insurance Laws
“Amat Victoria Curam” 
Notes of: Felipe S.R. RSIPetitor Aequi
an original owner on the life orhealth of a minor shallautomatically vest in the minorupon the death of the originalowner, unless otherwise providedfor in the policy.
Parents can insure the life of theirminor children
Public Enemy
Anyone except apublic enemy may be insured.
Effect of War
– War abrogates theinsurance contract.
Sec. 6. Every person, partnership,association, or corporation dulyauthorized to transact insurancebusiness as elsewhere provided in thiscode, may be an insurer.Sec. 184. For purposes of this Code,the term "insurer" or "insurancecompany" shall include all individuals,partnerships, associations, orcorporations, including government-owned or controlled corporations orentities, engaged as principals in theinsurance business, excepting mutualbenefit associations. Unless thecontext otherwise requires, the termsshall also include professionalreinsurers defined in section twohundred eighty
. "Domesticcompany" shall include companiesformed, organized or existingunder the laws of the Philippines."Foreign company" when usedwithout limitation shall includecompanies formed, organized, orexisting under any laws otherthan those of the Philippines.Sec. 185. Corporations formed ororganized to save any person orpersons or other corporationsharmless from loss, damage, orliability arising from any unknownor future or contingent event, orto indemnify or to compensateany person or persons or othercorporations for any such loss,damage, or liability, or toguarantee the performance of orcompliance with contractualobligations or the payment of debt of others shall be known as"insurance corporations".
 The provisions of the Corporation Lawshall apply to all insurancecorporations now or hereafterengaged in business in the Philippinesinsofar as they do not conflict with theprovisions of this chapter.
Mutual benefit association –
Areunder the regulatory powers of theInsurance Commission.Sec. 390. Any society, association orcorporation, without capital stock,formed or organized not for profit butmainly for the purpose of paying sickbenefits to members, or of furnishingfinancial support to members whileout of employment, or of paying torelatives of deceased members of fixed or any sum of money,irrespective of whether such aim orpurpose is carried out by means of fixed dues or assessments collectedregularly from the members, or of providing, by the issuance of 2From Timoteo Aquino’s Insurance Laws
“Amat Victoria Curam” 
Notes of: Felipe S.R. RSIPetitor Aequi
certificates of insurance, payment of its members of accident or lifeinsurance benefits out of such fixedand regular dues or assessments, butin no case shall include any society,association, or corporation with suchmutual benefit features and whichshall be carried out purely fromvoluntary contributions collected notregularly and or no fixed amount fromwhomsoever may contribute, shall beknown as a mutual benefit associationwithin the intent of this Code.Any society, association, orcorporation principally organized aslabor union shall be governed by theLabor Code notwithstanding anymutual benefit feature provisions in itscharter as incident to its organization.In no case shall a mutual benefitassociation be organized andauthorized to transact business as acharitable or benevolent organization,and whenever it has this feature asincident to its existence, thecorresponding charter provision shallbe revised to conform with theprovision of this section. Mutualbenefit association, already licensedto transact business as such on thedate this Code becomes effective,having charitable or benevolentfeature shall abandon such incidentalpurpose upon effectivity of this Code if they desire to continue operating assuch mutual benefit associations.
Mutual Insurance CompaniesSec. 262. Any domestic stock lifeinsurance company doingbusiness in the Philippines mayconvert itself into an incorporatedmutual life insurer. To that end itmay provide and carry out a planfor the acquisition of theoutstanding shares of its capitalstock for the benefit of itspolicyholders, or any class orclasses of its policyholders, bycomplying with the requirementsof this chapter.Sec. 263. Such plan shall includeappropriate proceedings foramending the insurer's articles of incorporation to give effect to theacquisition, by said insurer, forthe benefit of its policyholders orany class or classes thereof, of the outstanding shares of itscapital stock and the conversionof the insurer from a stock corporation into a non-stock corporation for the benefit of itsmembers. The members of suchnon-stock corporation shall be thepolicyholders from time to time of the class or classes for whosebenefit the stock of the insurerwas acquired, and thepolicyholders of such other classor classes as may be specified insuch corporation's articles of incorporation as they may beamended from time to time. Suchplan shall be:(1) Adopted by a vote of amajority of the directors;(2) Approved by the vote of the holders of at least a majorityof the outstanding shares at aspecial meeting of shareholderscalled for that purpose, or by the
3From Timoteo Aquino’s Insurance Laws
“Amat Victoria Curam” 
Notes of: Felipe S.R. RSIPetitor Aequi

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