exceed the value thereof’
INSURANCE CODE OF THE PHILIPPINES
(RA 10607)
Insurance Contract
Agreement whereby one undertakes for a
consideration to indemnify another against loss,
damage or liability arising from an unknown or
contingent event
Contract of suretyship is deemed insurance contract
if made by a surety who is doing an insurance
business
X health care plan services that do not assume risk
Elements of Insurance Contract
a. Insurable interest
! employer can take insurance for its employees
LIFE INSURANCE
Every person has 1. himself, his spouse and
insurable interest in the children
life and death 2. any person he is
dependent of for support
or education or whom in
which he has pecuniary
interest
3. any person under a
legal obligation to him
which death of an illness
that might delay
performance
4. any person whose life
any estate or interest
vested in him depends
PROPERTY INSURANCE
Property Real/personal, interest, or
liability such that there is
a contemplated peril
Insurable Interest 1. Existing Interest
2. Inchoate interest
founded on an existing
interest
3. Expectancy, with an
existing interest in that
ourt
Carrier/Depository of any Insurable interest on
kind thing held but not to
Mere Not founded on actual
contingent/Expectant right of a thing / No valid
Interest contract (not insurable)
! res perit domino is immaterial, in property insurance,
whether insured has substantial economic interest
in the property is material
! it is sufficient that a person with insurable interest in
property derives a benefit from its existence or would
suffer loss from its destruction (not required to have
lien, title or even beneficial interest)
! lessee has insurable right
! insurable interest in the PROPERTY must exist at the
time insurance takes effect and at the time the loss
occurs but need not exist in the meantime
! insurable interest in LIFE or HEALTH of a person
insured must exist when insurance take effect but
need not exist thereafter or when the loss occurs
Mortgagor Mortgagee
Each has insurable interest
Can be shown in one policy or separate policies
Insurable interest covers Insurable interest covers
the full value of the to the extent of debt not
property exceeding the value of
the property
May take out insurance
for the benefit of the
mortgagee as it is the
usual practice
Mortgagee may become:
1. assignee of the policy
(with the consent of the
insurer)
2. mere pledgee without
such consent
3. original policy may
contain a mortgage
clause
d. rider making the policy
payable to the mortgagee
Insurable interest in life is UNLIMITED, except an
insurance policy secured by a creditor on the life
of a debtor

b. Risk of Loss
if the risk insured against public policy, insurance ocnt