BETONIO, Mary Bernadette Joyce B.

September 15, 2014

FINSUMA K31 HW 1

1) What is insurance?
Insurance is a contract entered into which an insurer covers another party from a
specified event. It is an assurance of compensation to a potential loss, damage, illness or
death. It gives protection to individuals and business entities in such uncertain events within
a specified period in return for payment called premium.

2) What are the types of insurance in the Philippines? Write definition using your own words.
The Insurance Code, Presidential Decree 612, Chapter 2
 Marine Insurance. This includes protection and indemnity against uncertain events
relating to all marine life and non-life including the way of marine transportation and
communication.
 Fire Insurance. It covers uncertainties caused by fire, lightning, windstorm, tornado
or earthquake and other allied risks.
 Casualty Insurance. It covers loss or damage from casualties such as accidents and
mishaps. Examples are employer's liability insurance, motor vehicle liability
insurance, plate glass insurance, burglary and theft insurance, personal accident and
health insurance.
 Suretyship. A contract between a surety – the guarantor – and a principal or obligor
in favor of the obligee – as a third party. It usually includes corporate related
stipulations and the like.
 Life Insurance. It covers all eventualities connected to human lives.

REFERENCE:
Pareto, C. (n.d.). Intro To Insurance: What Is Insurance? | Investopedia.Investopedia. Retrieved
September 15, 2014, from http://www.investopedia.com/university/insurance/insurance1.asp.

The Insurance Code. (n.d.). Insurance. Retrieved September 15, 2014, from 

http://www.insurance.gov.ph/htm/pd612.htm.

What is insurance? definition and meaning. (n.d.). BusinessDictionary.com. Retrieved

September 15, 2014, from http://www.businessdictionary.com/definition/insurance.html.