Quiz #2

Right to Change Beneficiary

Sec 11 ICP: The insured shall have the right to change the beneficiary he
designated in the policy, unless he has expressly waived this right in said policy.
Notwithstanding the foregoing, in the event the insured does not change the
beneficiary during his lifetime, the designation shall be deemed irrevocable.
Kinds of
1.
2.
3.

Beneficiary
Insured himself
Personal representatives
Someone other than the insured

Relations of the Beneficiary to the Insured

1. Insured himself
2. Third person who paid a consideration
3. Third person through mere bounty of the insured

(3) An expectancy, coupled with an existing interest in that out of which the
expectancy arises (expectancy)
Sec 25 ICP: Every stipulation in a policy of insurance for the payment of loss
whether the person insured has nor 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.
Stipulations Prohibited in an Insurance Policy
(1) Stipulation for the payment of loss whether the person insured has or
has not any interest in the subject matter of insurance
(2) Stipulation that the policy shall be received as proof of insurable interest
(3) policy executed by way of gaming or wagering
Definition of Concealment
Sec 26 ICP: A neglect to communicate that which a party knows and ought to
communicate, is called a concealment.

Limitation in the Appointment of Beneficiary

A. Art 2012 NCC: Any person who is forbidden from receiving any donation
under Art 739 cannot be named beneficiary of a life insurance policy by
the person who cannot make any donation to him, according to said
article.
B. Art 739: The following donations shall be void:
(1) Those made between persons who were guilty of adultery or
concubinage at the time of the donation
(2) Those made between persons found guilty of the same criminal
offense, in consideration thereof
(3) Those made to a public officer or his wife, descendants and
ascendants, by reason of his office

Requisites of Concealment
1. A party knows the fact which he neglects to communicate or disclose to
the other
2. Such party concealing is duty bound to disclose such fact to the other
3. Such party concealing makes no warranty of the fact concealed; and
4. The other party has not the means of ascertaining the fact concealed

Insurable Interest in Property

Sec 14 ICP: An insurable interests in property may consist in:
(1) An existing interest
(2) An inchoate interest founded on an existing interest (inchoate interest);
or

Matters that must be Communicated Even in the Absence of Inquiry

1. They are material to the contract
2. The other has not the means of ascertaining the said facts; and

Duty to Disclose to the Other Party

Sec 28 ICP: Each party to a contract of insurance must communicate to the other,
in good faith, all facts within his knowledge which are material to the contract and
as to which he makes no warranty, and which the other has not the means of
ascertaining.

3.

As to which the party with the duty to communicate makes no warranty