The Policy

Sec. 55 to Sec. 66
Vanity Gail Trivilegio
and
Aika Fore Garcia

Sec. 55
Where Insurance is Effected by a
Partner of Part Owner

 Insurable interest in the property exist in

the partnership and in the partners.
Partner insures partnership property in his
own name, it limits the contract of
insurance to his individual share unless, the
terms of the policy provides otherwise

Sec. 56 and 57
General Description of the Insured

Sec. 58
Effect of Transfer of a Thing

 Personal Contract
It does not attach to or run with the
property insured
Exceptions are provided in Sec. 20-24 and
sec. 57

Sec. 59, 60, 61, and 62

Kinds of Policies

Kinds of Policies
1.Open or
Unvalued Policy
2.Valued Policy
3.Running Policy

Open or Unvalued Policy

A certain agreed sum is written on the face of the
policy
The agreed sum provides for the maximum limit of
the insurers liability
In case of loss, the actual cash value of the
property at the time of loss will be paid by the
insurer but not exceeding the agreed amount
stated in the policy

Valued Policy
The parties expressly agree on the value of the
subject matter of the insured
Two values: Face value of the policy and the value
of the thing insured
In the absence of fraud or mistake, the agreed
value of the thing insured will be paid unless, the
insurance is for a lower amount
In life insurance policy, the liability of the insurer is
measured by the face value of the policy

Running Policy
Intended to provide indemnity for property
which cannot be covered by a valued policy
because of frequent changes in location
and quantity, or the property is in the
nature of which it does not admit of a gross
valuation
Risk is shifting, fluctuating, or varying

Sec. 63
Validity of Agreement Limiting Time
for Commencing Action

 General Rule:
A clause in the policy stating that an action upon
the policy must be brought within a certain
period is valid and will prevail over the Civil Code
on the limitations of actions.
If less than one year from the time the cause of
action accrues, the stipulation would be void.
Exception:
Industrial life insurance; the period cannot be
less that 6 yrs. After the cause of action accrues

Accrual of Cause of Action

Right of insured to be paid- accrues from the
happening of the loss
Cause of action-accrues at the time when the
insureds claim is finally rejected by the insurer
Time when the insured has a right to bring an
action against the insurer