Concepts
Tax incentives are sometimes effective in encouraging
-something conceived in the mind
-an abstract or generic idea generalized from particular
instances
An investment is an asset or item acquired with the goal
of generating income or appreciation . Appreciation refers to
an increase in the value of an asset over time. When an
individual purchases a good as an investment, the intent is
not to consume the good but rather to use it in the future to
create wealth.
Enhancement - an increase or improvement in quality, value,
or extent.
The four main factors of economic growth are land, labor,
capital, and entrepreneurship.
Environment can be defined as a sum total of all the living
and non-living elements and their effects that influence human
life.
Investment incentives are special rights granted for certain
categories of investors in order to promote and facilitate
private investors to play their role in investing and accelerating
the country's economic growth.
Investment incentive, policy implemented by government to
promote the establishment of new businesses or to encourage
existing businesses to expand or not to relocate elsewhere.
Incentives- something that encourages a person to do
something.
Incentives themselves are rewards and benefits used to
motivate positive behaviors in your workforce
Ex.
people to save money.
Why is economic development important?
Because economic development is a critical component
that drives economic growth in an economy, creating new
job opportunities and facilitating an improved quality of
life that includes increased access to opportunities created by
economic growth for existing and future residents.
COVID-19 has taken a heavy toll on rural livelihoods. Loss of
income and job opportunities were overarching challenges in
poor communities in the Philippines. Disaster-prone
communities experienced more difficulties in coping with
COVID-19 restrictions and its severe economic impact
Results show the most pressing problems before and during
COVID-19 were: 
 Lack of income opportunities and reduction of pay were
pre-existing challenges but had worsened significantly
due to the pandemic.  
 During the pandemic, communities reported continued
insufficient food supply and health, sanitation, and
nutrition issues.
SIGNS OF ECONOMIC DEVELOPMENT
The signs of an economic recovery are a decrease in
unemployment, an increase in consumer spending,
incomes rising, an increase in the gross domestic product
(GDP), and improved business activity.

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
Characteristics of Insurance
 It is a contract for compensating losses.
 Premium is charged for Insurance Contract.
 The payment of Insured as per terms of agreement in the
event of loss.
 It is a contract of good faith.
 It is a contract for mutual benefit.
 It is a future contract for compensating losses.
 It is an instrument of distributing the loss of few among
many.
 The occurrence of the loss must be accidental.
 Insurance must be consistent with public policy.
Nature of Insurance
 Sharing of Risks
 C0-operative Device
 Valuation of Risk
 Payment made on contingency
 Amount of Payment
 Large Number of Insured Persons
 Insurance is not gambling
 Insurance is not charity
Functions of Insurance (Primary Function)
 Provision of certainty of payment at the time of loss
 Provision of protection Risk sharing
(Secondary Function)
 Prevention of loss
 Provision of Capital
 Improvement of efficiency
 Ensuring welfare of the Society…
One of the principal characteristics of an insurance contract is
that it is a consensual contract[2]. Being a consensual
contract, it is perfected by mere consent of the parties, as
such, no formality is required for its perfection
How is an insurance contract perfected?
When an insurance policy is delivered to the insured upon
partial payment of the premium there was not only a perfected
contract of insurance but a partially performed one as far as
the payment of the agreed premium was concerned.
The other elements required are specific to insurance
contracts:
 Indemnity. an indemnity is a contractual obligation of
one party to compensate the loss incurred by another
party due to the relevant acts of the indemnitor or any
other party.
 Insurable Interest. - is the interest that a person has in
something such as a particular property or another
individual which means that the person would suffer a
loss should that property or individual be harmed. 
 Utmost Good Faith - legally obliges all parties
entering a contract to act honestly and not mislead or
withhold critical information.
 Subrogation - When you file a claim, your insurer can
try to recover costs from the person responsible for
your injury or property damage.  the policy, after deducting from the whole premium any
 Assignment and nomination - A nomination is an
appointment of a person (nominee) to receive the
insurance claim in case of the demise of the insured.
An assignment is a transfer of the policy's rights,
ownership, and interest to another person or entity.
 Warranties- Warranty and Indemnity Insurance covers
both buyers and sellers by providing coverage for
inaccuracies of representations and warranties given in
the sale of a business.
 Proximate Cause - (1) The cause having the most
significant impact in bringing about the loss under a
first-party property insurance policy, when two or more
independent perils operate at the same time (i.e.,
concurrently) to produce a loss.
example, if a truck driver swerves and hits a car, the driver
is the actual cause of the accident. But if they moved to
avoid a bicyclist riding on the road, the bicyclist's unsafe
driving might be the proximate cause
 Return of Premium "Section 80. A person insured is
entitled to a return of premium, as follows:
"(a) To the whole premium if no part of his interest in
the thing insured be exposed to any of the perils
insured against;
"(b) Where the insurance is made for a definite period
of time and the insured surrenders his policy, to such
portion of the premium as corresponds with the
unexpired time, at a pro rata rate, unless a short period
rate has been agreed upon and appears on the face of
claim for loss or damage under the policy which has
previously accrued: Provided, That no holder of a life
insurance policy may avail himself of the privileges of
this paragraph without sufficient cause as otherwise
provided by law.
"Section 81. If a peril insured against has existed, and the
insurer has been liable for any period, however short, the
insured is not entitled to return of premiums, so far as that
particular risk is concerned.
"Section 82. A person insured is entitled to a return of the
premium when the contract is voidable, and subsequently
annulled under the provisions of the Civil Code; or on account
of the fraud or misrepresentation of the insurer, or of his agent,
or on account of facts, or the existence of which the insured
was ignorant of without his fault; or when by any default of the
insured other than actual fraud, the insurer never incurred any
liability under the policy.
"A person insured is not entitled to a return of premium if the
policy is annulled, rescinded or if a claim is denied by reason
of fraud.
"Section 83. In case of an over insurance by several insurers
other than life, the insured is entitled to a ratable return of the
premium, proportioned to the amount by which the aggregate
sum insured in all the policies exceeds the insurable value of
the thing at risk.
"Section 84. An insurer may contract and accept payments, in
addition to regular premium, for the purpose of paying future
premiums on the policy or to increase the benefits thereof.