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Life insurance is insurance on human lives and insurance appertaining thereto or connected therewith. Sec. 179. Insurance Code.
1. Life insurance may be defined as insurance payable on the death of a person, or on his surviving a specified period , or otherwise contingently on the continuance or cessation of life.
Life insurance is a mutual agreement by which a party agrees to pay a given sum on the happening of a particular event contingent on the duration of human life. or in periodical payments by the other party. .2. in consideration of the payment of a smaller sum immediately.
upon the death of a person whose life has been insured. the beneficiary.3. . Life insurance is a contract to make specific payments to pay to a certain person.
1. Insurance payable on the death of a person 2. It is a contract . It is a mutual agreement 3.
Beneficiary . Owner of the policy 2.Other than the insurer parties include: 1. Cestui que vie 3.
Amount of insurance generally without limit 3. Liability absolutely certain 2. Directly pecuniary loss not required .1. Life policy is a valued policy 4.
Contract of Investment 2. Insurable Interest need not exist Must exist not only when the after insurance takes effect or insurance takes effect but also when loss occurs when loss occurs .Life Insurance 1. Valued Policy 3. Transferable even with no insurable interest 4. Consent is not essential to the validity of assignment Fire and Marine Insurance Contracts of Indemnity Open or Valued Must have insurable interest Essential 5.
No obligation to prove actual financial loss Either the Insured or the Insurer may cancel The reverse is generally true Required to submit proof of actual pecuniary loss . “Loss” can seldom be measured by cash value 11. May be terminated only by the insured 10. The contingency is a certain event The contingency may or may not occur 8.Life Insurance 6. Insurable Interest need not have any legal basis Fire and Marine Insurance Must have a legal basis 7. Payment is certain (will have to be Uncertain (the amount insured paid sooner or later) may not have to be paid) 9.
the following property. privileges. 12 (k). or annunities accruing or in any manner growing out of any life insurance Rule 39. – Except as otherwise expressly provided by law. benefits.Property exempt from execution. and no other. shall be exempt from execution: -----(k) Monies. Rules of Court . Sec.
1. When accident insurance regarded as life insurance 2. Burden of Proof .
Endowment policy . Ordinary life policy 2. Term insurance policy 4.1. Limited payment life policy 3.
.Ordinary life policy is one under the terms of which the insured is required to pay a certain fixed premium annually or at more frequent intervals throughout his entire life and the beneficiary is entitled to receive payment under the policy only after the death of the insured.
. or twenty. usually ten.Limited payment life policy is one under the terms of which the premiums are payable only during a limited period of years. fifteen.
.Term insurance policy is one which provides coverage only if the insured dies during a limited period.
Endowment policy is one under the terms of which the insurer binds himself to pay a fixed sum to the insured if he survives for a specified period. if he dies within such period. to some other person indicated. . or.
1. accident. Health. and disability insurance . Life Insurance a) Actual Death b) Living Death c) Retirement Death 2.
Civil Code . the debtor binds himself to pay an annual pension or income during the life of one or more determinate persons in consideration of a capital consisting of money or other property.By the aleatory contract of life annuity. 2021. whose ownership is transferred to him at once with the burden of the income. Art.
The annuity has been called the “upsidedown application of the life insurance principle”. .
Life Payment of Insurance Premium Life Annuity Upon death Payment to beneficiary starts Payment of For as long Payment to Premium as the the insured insured stops lives .
An Investment An Indemnity . From the Insurer’s viewpoint looks Looks to longevity to transiency 3. Ensures against economic problems resulting from a long life Life Insurance Policy Ensures against economic problems resulting from an early death 2.Annuity Contract 1. Lump sum is paid immediately and then annuity payments are received by the annuitant for as long as he lives Payment of annuity and then beneficiary is paid the lump sum upon death of the insured 4.
. Provided. however. Sec. unless the policy provides a shorter period. that suicide committed in the state of insanity shall be compensable regardless of the date of commission. 180 – A. Insurance Code.The insurer in a life insurance contract shall be liable in case of suicide only when it is committed after the policy has been in force for a period of two years from the date of its issue or of its last reinstatement.
Committed in the state of insanity regardless of date of commission.When Liable When not Liable 1. unless suicide is an excepted risk If the insurer can show that the policy was obtained with the intention to commit suicide even in the absence of any suicide exclusive in the policy . Committed after a shorter period Committed by reason of insanity provided in the policy although within but is not among the risks the two year period assumed by the insurer regardless of the date of commission 3. Committed after policy has been Committed within the two year in force two years from the date of its period not by reason of insanity issue or of its last reinstatement 2.
Section 181.A policy of insurance upon life or health may pass by transfer. and such person may recover upon it whatever the insured might have recovered. Insurance Code. whether he has an insurable interest or not. . will or succession to any person.
Where assignment used as a cloak to hide an illegal scheme . Insurable interest of assignee in life insurance not required 2.1.
.1. Insurable interest of assignee in life insurance not required All life insurance policies are declared by law to be assignable regardless of whether the assignee has an insurable interest in the life of the insured or not.
Where assignment used as a cloak to hide an illegal scheme The courts will not permit the process of assignment to be used as a cloak to hide an illegal intent to make contracts on human life.2. .
Without such waiver . With waiver of right to change beneficiary 2.1.
Notice to an insurer of a transfer or bequest thereof is not necessary to preserve the validity of a policy of insurance upon life or health. Section 182. . unless thereby expressly required. Insurance Code.
Assignment with consent of insurer . Notice required by policy 3.1. Notice not required by policy 2.
Unless the interest of a person insured is susceptible of exact pecuniary measurement. Section 183. the measure of indemnity under a policy of Insurance upon life or health is the sum fixed in the policy. Insurance Code .
life policies are valued ones.The extent or amount of indemnity payable on the death of the insured under a policy of insurance upon life or health is the amount fixed in the policy in effect. .