bp no.
22 anti-bouncing checks law (2) insurance companies and other institutions
- acts punishable by law
1) with knowledge at the time of issuance that
there are NO FUNDS
2)with funds at the time of issuance but NO
FUNDS at the time of encashment (given 5 days
w/in w/c to replenish the account)
r.a 1405 secrecy of bank deposits law when it
can be inquired into:
1-written consent by depositor
2-impeachment cases
3-court order in bribery and dereliction of duty
cases of public officials
4-deposits is subject of litigation
5-in anti-graft and corruption cases
-end-
advance reading: PDIC (ra 3591-1963) (ra
10848-2018)
-purposes
–types of deposits insured
-must depositors pay insurance premium
-maximum deposit
-insurance coverage
-depositors w/ several bank deposits
-period to file claim from PDIC
-advantages if depositors has several banks
-end-
advance reading: AMLC (ra 9160) covered
institution
(1)banks, non-banks, quasi-banks, trust entities,
and all other institutions supervised and
regulated by bsp
supervised and regulated by insurance
commission
(3) securities dealers, brokers, salesmen,
investment houses, money changers and others
supervised and regulated by sec -covered
transaction (is a single, series or combination of
transactions involving a total amount IN EXCESS
OF FOUR MILLION PESOS or an equivalent
amount ...
PDIC:
Purpose
-to protect depositors tru deposit insurance
coverage of their bank deposits type of deposits
covered
- bank@savings account, current deposit
account, fixed deposit account, recurring
deposit account, timedepositsaccount
notcoveredby pdic- investmentfunds ex
bonds,securities@ trustaccounts, deposits w/c
unfunded,fictitious,fraudulent, deposits from
unsound banking practices, deposits w/c violate
AMLA maximum deposit by depositor
-no limit maximum insurance coverage under
pdic- 500,000 per person per bank depositor
does not pay insurance premium under
pdic ...end...
- a contract of insurance is an agreement
whereby one undertakes for a consideration to
indemnify another against loss, damage or
liability arising from an unknown or contingent
event.
-loss is the injury or damage sustained by the
insured from the perils insured against.
-loss for which the INSURER is liable
- it must be the PROXIMATE CAUSE
-loss for which the INSURER IS NOT LIABLE
1) loss by insured's willful act
2)loss due to connivance by the insured to fraudulent concealment or
misrepresentation of the insured. -end-
3)loss where the excepted peril is the proximate
cause

-characteristics :

1)aleatory

2)voluntary

3)executory

4)synallagmatic

5)compensatory

6)based on good faith

7)personal -

end-

*matters w/c affect insurance coverage:

1.concealment - is a neglect to communicate
that w/c a party knows and to communicate to
the other party.

requisites:

a)the matter concealed must be material

b)there must be an obligation for the insured to

reveal the concealed matter to the insurer

2.misrepresentation - is an oral or written

misstatement of a fact or condition affecting the
risk made by the insured to the insurer tending
to induce the insurer to assume the risk.

3.warranty - is a statement or promise set forth

in the policy or by reference incorporated
therein, the untruth or non-fulfillment of w/c in
any respect and w/o reference to whether the
insurer was in fact prejudiced by such untruth
or non-fulfillment renders the policy as
voidable.

*INCONTESTABILITY CLAUSE IN LIFE INSURANCE

- after a policy has been in force for at least 2
years, the insurer cannot rescind the policy due
 -end-

* Policy is the written instrument in w/c a

contract of insurance is set forth.
Classes of insurance:
*how ambiguity is settled - since insurance is a
1.life insurance
contract of adhesion, any ambiguity therein
2.non-life insurance should be resolved against the insurer.

a) fire insurance *effectivity of policy - no policy or contract of

insurance issued by the insurance company is
b) marine insurance valid and binding until the premium thereof is
c)casualty insurance paid.

d)suretyship *cancellation of NON-LIFE policies

*what may be insured against: - no insurance policy, EXCEPT LIFE, may be

cancelled except upon prior notice to the
1.a future contingent event resulting in loss or insured based on the ff. grounds:
damage
1.non-payment of premiums
2.a past unknown event resulting in loss or
damage 2.fraud or misrepresentation

3.contingent liability 3-property is no longer insurable

because of high risk

*parties to an insurance contract: *kinds of policies :

1.the insurer 1-open policy

2.the insured 2-valued policy

3.the beneficiary 3-running policy

-end-

*insurable interest - is the interest w/c the law

requires a person making a contract of
insurance to have in the person or thing insured
to prevent the contract from becoming a
wagering contract
*when insurable interest should exist
1.in LIFE INSURANCE, it must exist only at the
time policy is taken
* OPEN POLICY is one in w/c the value of the
thing insured is not agreed upon but is left to be
ascertained at the time of the loss.
*a VALUED POLICY is one in w/c a definite
valuation is by the agreement of both parties
put upon the subject matter of the insurance
and written on the face of the policy.

2.in NON-LIFE INSURANCE, it must not exist only *a RUNNING POLICY is one w/c contemplates
at the time policy is taken but also at the time successive insurances and w/c provides that the
loss occurs
subject of the policy may from time to time be
defined.
*PREMIUM is the consideration paid to an
insurer for undertaking to indemnify the
insured against a specified peril.
*DOUBLE INSURANCE exists where the same
person is insured by several insurers
respectively in respect to the same subject and
interest.
*REINSURANCE is a contract by w/c an insurer
procures a third person to insure him against
loss or liability by reason of such original
insurance.
-end-
*distinctions bet.
DOUBLE INSURANCE and REINSURANCE;
DI involves the same interest, R is an insurance
of different interest,
DI the insurer remains in such capacity, R
insurer becomes an insured of the reinsurer,
DI the insured in the 1st contract is a party in
the 2nd contract, R the original insured has no
interest in the reinsurance contract
*FIRE INSURANCE - fire but may include loss by
lightning, windstorm, tornado, thunder and
earthquake
*MARINE INSURANCE - vessels, goods, freight,
cargo, merchandise and interests in respect to
perils of the sea 8PERILS OF THE SEA - are
losses by sea damage from extraordinary
occurrences only such as stress of the weather,
winds and waves, lightnings, tempest rocks and
the like
-end-
INCHAMAREE CLAUSE covers loss or damage to
hull or machinery thru
1-negligence of the captain or engr.
2-explosions or breakage of shafts 3-defect of
machinery or hull
*CASUALTY INSURANCE is insurance covering
loss or liability arising from ACCIDENT OR
MISHAP excluding fire or marine insurance
*COMPULSORY MOTOR VEHICLE INSURANCE -
requirement for car registration at LTO
*NON-FAULT CLAUSE in CMVI -any claim for
death or injury shall be paid 5,000- w/o the
necessity of proving fault or negligence
1-death/injury certificate
2-police report
3-medical report
*EXPIRED DRIVERS LICENSE violates provision of
accident insurance policy
-end=
*SURETYSHIIP is an agreement whereby the
surety guarantees the performance by another
of an undertaking or an obligation in favor of a
3rd party.
*LIFE INSURANCE is an insurance on human life.
*ORDINARY LIFE - the insured pays a specific
premium every year until he dies. The policy
acquires a surrender value after 3 years.
*LIMITED PAYMENT POLICY -the insured pays
premium for a limited period. If he dies w/in the
period his beneficiary is paid. If he outlives the
period he does not get anything from the policy.
*ENDOWMENT POLICY -the insured pays
premium for a specified period. If he outlives
the period the face value of the policy is paid to
him. If not , his beneficiary receives the benefit.
*TERM INSURANCE -the insured pays once only
and he is insured for a specified period. If he
dies w/in the period his beneficiary benefits. If
he outlives the period no person benefits.

*INDUSTRIAL LIFE INSURANCE -the insured pays

weekly or monthly or more often and the words
INDUSTRIAL POLICY is printed upon the policy.

-end-