HN. 4867 5, No. 3240 Republic ofthe Philippines Congress of the Philippines Astro Marile Bitleest Congress find Regular Session — Begun and heid in Metro Manila, on Monday, the twenty-third day of July, two thousand twelve, [REPUBLIC ACT NO. 39607] AN ACT STRENGTHENING THE INSURANCE INDUSTRY, FURTHER AMENDING PRESIDENTIAL DECREE NO. 612, OTHERWISE KNOWN AS "THE INSURANCE CODE’, AS AMENDED BY PRESIDENTIAL DECREE NOS. 1141, 1280, 1455, 1460, 1814 AND 1981, AND BATAS PAMBANSA BLG. 874, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philipines in Congress ascembled SECTION 1. Presidential Decree No. 612, as amended, is, hereby further amended to read as follow "GENERAL PROVISIONS "SECTION 1. This Decree shall be known as “The Insurance Code’[demayancthor agina om dasvageo lability ising fom an unknown orcoatinget evant "Acontrac of surety ahip sl be deemed tobe tn ingurence contrac, within the meaning of this Codeonyifuade by avurety whoor which assuch, 4s doing an insurance business ay hereinafter ) Tho erm doing an insurarce business or transacting an insurance business, within the sing ofthis Cod, sal incl 0) Making or proposing vo male, as neuer, 0) Making ce proposing to make, ou surety, ny contrat ofsuretyship aes voration aad not as ‘erly incidental to any cher logtnata Wines or scuiy ofthe ures 8) Doing any kind of basins, including & ‘insurance business, specially recognized 26 ‘Soattting the dang ofan nearance busine within ‘themeaning ofthis Code; "W Deing or proposing todo any business in substance equivalent to any ofthe foregoing in a ‘anor designed evade the provisional tis Code “Inthe appcaton ofthe proviionsof thi Cade, {Be acttbet no prot aderwed fom tbe making of (at mo weparae or dest consideration ia rcaied thera, hal ot be doersed coacluaive to show that the making thereof done not constitute the ding oF leonsucting ofan nmurancebarines. “Ae used in this Code, the term (Commissioner means the Insurance Commissioner scHAPTER “Tie Conreact oF PxsURANCE snr 1 “Wane May Be URED "Ste. 3. Any contingent of usknows event, whether past or futur, wise my damniy «porn aving en ingucable faterest, or create «sly ‘tic hin, may bu inwurod again, ubjot tothe provisions ths captor. “The consent ofthe spouse ie not neceasary for ‘the validity ofan insurance policy taken out by « ‘Barred peron on his cr ler eo hat fis or hat olden” All ight title and intrest in the plcy of Jnguranc akeo out by an origina own onthe ife rhealth fe peste insured shall automaticaly ‘esta tho liter upon dhe dott ofthe gal one, ‘les otherwine provided forin the ply Ske. 4. The preceding section does aot sutherian en inauranceforor against the drawing of ‘uy loiry, or foror against ay chance otc in Slotary drawing a prse Ske. 6, All kinds of insurance are abject to thw provisions of thi chaptereofar asthe provisent an apps cms 2 "paamis Yo Tue Cowmmac Suc. 6. Bvery corporation, partnership, or susciation, daly authoried to traneatinrurebce ‘urinates elaewhare provided inthis Cede, maybe“Sec. 1. Anyone except « public enemy may be innared. "$80. 8. Unless the policy otherwise provides, wheres mortgage af property eects insurance in ‘isowa name providing that theloeehallbe payee {the mortgagee, or assignsa policy ofinrurence 1 ‘Smortgege,theinsuance is doomed be upon the {ntreatof the mortgage, who dow nt caso bea party tothe original contrac, and any act of his, Dror to the lug which would otherwise avoid the {ourance, wil have dhe same effet, although tho Property ian the hande of the mortgagee, but any fctwbich, nde as ifihad Yoon performed by the mortgagee "Sko.9. fam inourerarsonts to the trancler ofan innuranos from a morgager tos mortgagee, ‘tnd, atthe time of his assent, imposes farther blgatons onthe auignes, making s new contract ‘wilh, the acts oftbe merigngor cannot fet the Tiehdecfeileangawe, cme 8 “Insurasie beret "Sec. 10. Bevery person has an inurable Seren the ie and hah "@) Of hime, of his epoure and of hia chdren: 0) Ofans person on whom be dependa wily or in part for education or uppert, Fin whom he ‘hag pocuniary interest "@ Ofany porsco under alogal ligation to um or he payment of money. respecting property or vervicn of which deathor lauee might delay ot prevent the performance and %@ Ofany person upon whose life any estate orintoeat vested in him depends. See.11. The insured shall have he ightto change the beeficiary be deaignatd in the policy, ‘lous he has expreaaly waived this right in ead policy. Notwithstanding te foregoing inthe event {he naured doesnot change the beneficiary during bie lifetime, the denignation aball be deemed trrevocatle "Si0, 12, ‘The nterestofa benetary ina io Insurance policy shall be forfeited when the benoteiery tthe poinspalatomplion, or acssry {Rwillfly bringing ebost the death f the insured Thauchacaso, the ear forftod shal paso athe ther teneiaree nies otherwise dsgualied. {he absonceofother benetterics, the proceds shall ‘opal in scanedenon withthe policy contact. the pally contract ellen, the proceds salle pa to Uheeutatoof the insured. Sto, 13, Bvery ntreatin property, whether ‘real orperasnal or any relation thereto, cr ality TBreapec threo cfeuch nature thst acontmplatad pl might directly damaify the insu ‘nara nearest "S20, M4. Aa inaurable interest in property may consist in WA existing intrest; '@) An inchosts interest founded on an. sang intaest;or %@) Anexpactiney, coupled with an existing ateretin hat out of which the expectancy arises Sue. 16, Acarie depository of ery kind thas an inurable interest ina thing bod by him os sch tothe exten of ie ality But aot to exceed ‘have thereat "820,16. A more contingent or expectant ‘intron ay thing, ot founded on an actual ight tothe ting nr upan any valid cootrat fort, not inerabe.