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INSURANCE CODE
(P.D. No. 1460)
I. GENERAL CONCEPTS
CONTRACT OF INSURANCE
An
agreement
whereby
one
undertakes for a consideration to
indemnify another against loss, damage
or liability arising from an unknown or
contingent event. (Sec. 2, par. 2, IC)
DOING AN INSURANCE BUSINESS OR
TRANSACTING
AN
INSURANCE
BUSINESS (Sec. 2, par. 4)
1. Making or proposing to make, as
insurer, any insurance contract;
2. Making or proposing to make, as
surety, any contract of suretyship as
a vocation, not as a mere incident to
any other legitimate business of a
surety;
3. Doing any insurance business,
including a reinsurance business;
4. Doing or proposing to do any
business in substance equivalent to
any of the foregoing
II. CHARACTERISTICS OF AN INSURANCE
CONTRACT (The Insurance Code of the
Philippines Annotated, Hector de Leon,
2002 ed.)
1. Consensual it is perfected by the
meeting of the minds of the parties.
2. Voluntary the parties may
incorporate
such
terms
and
conditions as they may deem
convenient.
3. Aleatory it depends upon some
contingent event.
4. Unilateral imposes legal duties only
on the insurer who promises to
indemnify in case of loss.
5. Conditional It is subject to
conditions the principal one of
which is the happening of the event
insured against.
6. Contract of indemnity Except life
and accident insurance, a contract
of insurance is a contract of
indemnity whereby the insurer
promises to make good only the loss
of the insured.
INSURABLE
INTEREST IN
PROPERTY
Must exist at the
time the policy
takes effect and
SPECIAL CASES
1. In case of a carrier or depositary
A carrier or depository of any kind has
an insurable interest in a thing held by
him as such, to the extent of his liability
but not to exceed the value thereof
(Sec. 15)
2. In case of a mortgaged property
The mortgagor and mortgagee each
have an insurable interest in the
property mortgaged and this interest is
separate and distinct from the other.
a. Mortgagor As owner, has an
insurable interest therein to the
extent of its value, even though the
mortgage debt equals such value.
The reason is that the loss or
destruction of the property insured
will not extinguish the mortgage
debt.
b. Mortgagee His interest is only up
to the extent of the debt. Such
interest continues until the mortgage
debt is extinguished.
The lessor cannot be validly a
beneficiary of a fire insurance policy
OPEN OR LOSS
PAYABLE
MORTGAGE
CLAUSE
Acts
of
the
mortgagor affect
the mortgagee.
Reason:
Mortgagor does
not cease to be a
party
to
the
contract. (Secs.
8 and 9)
EXCEPTIONS:
1.
2.
3.
4.
5.
ASSESSMENT
Collected to meet
actual losses.
Payment
is
not
enforceable against
the insured.
Payment
is
enforceable once
levied
unless
otherwise
agreed
upon.
Not a debt.
It becomes a debt
once
properly
levied
unless
otherwise agreed.
X. TRANSFER OF POLICY
1. Life Insurance
It can be transferred even without the
consent of the insurer except when
there is a stipulation requiring the
consent of the insurer before transfer.
(Sec. 181)
Reason: The policy does not represent
a personal agreement between the
insured and the insurer.
2. Property insurance
It cannot be transferred without the
consent of the insurer.
Reason: The insurer approved the
policy
based
on
the
personal
qualification and the insurable interest
of the insured.
3. Casualty insurance
It cannot be transferred without the
consent of the insurer. (Paterson cited in
de Leon p. 82)
Reason: The moral hazards are as
great as those of property insurance.
CHANE OF INTEREST IN THE THING
INSURED
The mere (absolute) transfer of the
thing insured does not transfer the
policy, but suspends it until the same
person becomes the owner of both the
policy and the thing insured. (Sec. 58)
Reason: Insurance contract is
personal.
GENERAL RULE: A change of interest in
any
part
of
a
thing
insured
unaccompanied by a corresponding
change of interest in the insurance
suspends the insurance to an equivalent
extent, until the interests in the thing
and the interest in the insurance are
vested in the same person. (Sec. 20)
EXCEPTIONS:
1. In life, health and accident
insurance.(Sec. 20);
2. Change in interest in the thing
insured after occurrence of an
injury which results in a loss.
(Sec. 21);
3. Change in interest in one or
more of several distinct things
separately insured by one policy.
(Sec. 22);
4. Change of interest, by will or
succession, on the death of the
insured. (Sec. 23);
5. Transfer of interest by one of
several partners, joint owners,
or owners in common, who are
jointly insured, to others. (Sec.
24);
6. When a policy is so framed that
it will inure to the benefit of
whomsoever,
during
the
continuance of the risk, may
become the owner of the
interest insured. (Sec. 57);
7. When there is an express
prohibition against alienation in
the policy, in case of alienation,
the contract of insurance is not
merely suspended but avoided.
(Art. 1306, NCC).
XI. ASCERTAINMENT AND CONTROL OF
RISK AND LOSS
A. Four Primary Concerns of the
Parties:
1. Correct estimation of the risk;
2. Precise delimitation of the risk;
3. Control of the risk;
4. Determining whether a loss occurred
and if so, the amount of such loss.
B. Devices used for ascertaining and
controlling risk and loss:
1. Concealment A neglect to
communicate that which a party knows
and ought to communicate (Sec. 26)
Requisites:
a. A party knows a fact which he
neglects to communicate or
disclose to the other.
b. Such party concealing is duty
bound to disclose such fact to
the other.
2.
Representations
Factual
statements made by the insured at the
time of, or prior to, the issuance of the
policy to give information to the insurer
and induce him to enter into the
insurance contract. They are considered
an active form of concealment.
Requisites of a false representation
(misrepresentation):
a. The insured stated a fact which
is untrue.
b. Such fact was stated with
knowledge that it is untrue and
with intent to deceive or which
he states positively as true
without knowing it to be true
and which has a tendency to
mislead.
c. Such fact in either case is
material to the risk.
Characteristics:
a. It is not a part of the contract but
merely a collateral inducement to it.
b. It may be oral or written.
c. It is made at the same time of issuing
the policy or before but not after.
d. It may be altered or withdrawn before
the insurance is effected but not
afterwards.
e. It always refers to the date the
contract goes into effect.
Kinds:
a. AFFIRMATIVE affirmation of a fact
when the contract begins; and
b. PROMISSORY promise to be
performed after policy was issued.
Effect of Misrepresentation: the
injured party is entitled to rescind from
the time when the representation
becomes false.
Test of Materiality: Same as that in
concealment.
Where the insured merely signed the
application form and made the agent of
the insurer fill the same for him, it was
held that by doing so, the insured made
the agent of the insurer his own agent
and he was responsible for his acts for
that purpose. (Insular Life Assur. Co. vs.
Feliciano, 74 Phil. 469)
3. Warranties Statement or promise
by the insured set forth in the policy or
by reference incorporated therein, the
REPRESENTATION
Mere collateral
inducement
Written on the
policy, actually or by
reference
May be written in
the policy or may
be oral.
Presumed material
Must be proved to
be material
Must be strictly
complied with
Requires only
substantial truth
and compliance
10
CANCELLATION
OF
NON-LIFE
INSURANCE POLICY
Right of the insurer to abandon the
contract on the occurrence of certain
grounds after the effectivity date of a
non-life policy.
Grounds:
1. Non-payment of premium;
2. Conviction of a crime out of acts
increasing
the
hazard
insured
against;
3. Discovery of fraud or material
misrepresentation;
4. Discovery of willful or reckless acts
of omissions increasing the hazard
insured against;
5. Physical changes in property making
the property uninsurable; and
6. Determination by the Insurance
Commissioner that the continuation
of the policy would violate the
Insurance Code. (Sec. 64)
Requirements:
1. Prior notice of cancellation to
the insured;
2. Notice must be in writing,
mailed or delivered to the
named insured at the address
shown in the policy;
3. Notice must state which of the
grounds set forth in Sec. 64 is
relied upon and upon request of
the insured, the insurer must
furnish facts on which the
cancellation is based;
4. Grounds should have existed
after the effectivity date of the
policy.
XII. INCONTESTABILITY CLAUSE
Clause in life insurance policy that
stipulates that the policy shall be
incontestable after a stated period.
Requisites:
1. Life insurance policy
2. Payable on the death of the insured
3. It has been in force during the
lifetime of the insured for a period
of at least two years from the date
of its issue or of its last
reinstatement
Note: The period of 2 years may be
shortened but it cannot be extended by
stipulation.
11
DEFENSES NOT
BARRED
1. Policy is void ab
initio
2. Policy
is
rescindable
by
reason
of
the
fraudulent
concealment
or
misrepresentation of
the insured or his
agent
XIII.
A. OVER-INSURANCE results when the
insured insures the same property for an
amount greater than the value of the
property with the same insurance
company.
Effect in case of loss:
1. The insurer is bound only to pay to
the extent of the real value of the
property lost;
2. The insured is entitled to recover
the
amount
of
premium
12
A
stipulation
against
double
insurance.
Purposes:
1. To prevent an increase in the
moral hazard
2. To prevent over-insurance and
fraud.
To constitute a violation of the
clause, there should have been double
insurance.
C. REINSURANCE a contract by which
the insurer procures a third person to
insure him against loss or liability by
reason of an original insurance (also
known as Reinsurance Cession). (Sec.
95)
In every reinsurance, the original
contract of insurance and the contract of
reinsurance are covered by separate
policies.
DOUBLE
INSURANCE
REINSURANCE
Involves
different
interest
Insurer becomes the
insured in relation
to reinsurer
Original insured has
no interest in the
reinsurance
contract.
Subject of insurance
is
the
original
insurers risk
Insureds
consent
not necessary
TERMS:
1. Reinsurance treaty Merely an
agreement between two insurance
companies whereby one agrees to cede
and the other to accept reinsurance
business pursuant to provisions specified
in the treaty. (Prof. De Leon, p. 306)
2. Automatic reinsurance The
reinsured is bound to cede and the
reinsurer is obligated to accept a fixed
share of the risk which has to be
1. Loss
the
proximate cause of
which is the peril
insured
against
(Sec. 84);
2. Loss
the
immediate cause of
which is the peril
insured
against
except
where
proximate cause is
an excepted peril;
3. Loss
through
negligence
of
insured
except
where there was
gross
negligence
amounting to willful
acts; and
4. Loss caused by
efforts to rescue the
thing from peril
insured against;
5. If during the
course of rescue,
the thing is exposed
1. Loss
by
insureds
willful
act;
2. Loss due to
connivance of the
insured (Sec. 87);
and
3. Loss where the
excepted peril is
the
proximate
cause.
13
to a peril not
insured
against,
which permanently
deprives the insured
of its possession, in
whole or in part
(Sec. 85).
In other types of
insurance
Required
Not required
Failure
to
give
notice will defeat
the right of the
insured to recover.
Failure to give
notice will not
exonerate
the
insurer,
unless
there
is
a
stipulation in the
policy requiring the
insured to do so.
B. CLAIMS SETTLEMENT
The indemnification of the loss of the
insured.
TIME FOR PAYMENT OF CLAIMS
NON-LIFE
LIFE POLICIES
POLICIES
a.
Maturing
upon
the
expiration of the
term
The
proceeds
are
immediately
payable to the
insured,
unless
they are made
payable
in
installments or as
annuity, in which
case,
the
installments
or
annuities shall be
paid
as
they
become due.
b. Maturing at
the death of the
insured, occurring
prior
to
the
expiration of the
term stipulated
The proceeds are
payable to the
beneficiaries
within 60 days
after presentation
and filing of proof
of death.
14
KINDS
OF
INSURANCE
15
PERILS OF THE
SEA
PERILS OF THE
SHIP
1. Negligence
of
the
captain,
engineers, etc.
2. Explosions, breakage of shafts; and
3. Latent defect of machinery or hull.
(Bar Review Materials in Commercial
Law, Jorge Miravite, 2002 ed.)
D. Sue and Labor Clause
A clause under which the insurer may
become liable to pay the insured, in
addition to the loss actually suffered,
such expenses as he may have incurred
in his efforts to protect the property
against a peril for which the insurer
would have been liable. (Sec. 163)
MATTERS ALTHOUGH CONCEALED, WILL
NOT VITIATE THE CONTRACT EXCEPT
WHEN THEY CAUSED THE LOSS (Sec.
110)
1. National character of the insured;
2. Liability of the thing insured to
capture or detention;
3. Liability to seizure from breach of
foreign laws;
4. Want of necessary documents; and
5. Use of false or simulated papers.
Note: This should be related to the
general
rule
regarding
material
concealment.
DISTINCTIONS
ON
CONCEALMENT
(Commercial
Law
Reviewer,
A.F.
Agbayani, 1988 ed.)
MARINE INSURANCE
OTHER
PROPERTY
INSURANCE
The information or
belief of a 3rd party
is not material and
need
not
be
communicated
unless it proceeds
form an agent of
the insured whose
duty it is to give
information
Concealment of any
material fact will
vitiate the entire
contract, whether
or not the loss
results for the risk
concealed.
The concealment of
any fact in relation to
any of the matters
stated in Sec. 110
does not vitiate the
entire contract but
merely exonerates the
insurer from a risk
resulting from the fact
concealed
16
IMPLIED WARRANTIES
1. Seaworthiness of the ship at the
inception of the insurance (Sec.
113);
2. Against improper deviation (Sec.
123, 124, 125);
3. Against illegal venture;
4. Warranty of neutrality: the ship will
carry the requisite documents of
nationality or neutrality of the ship
or cargo where such nationality or
neutrality is expressly warranted;
(Sec. 120)
5. Presence of insurable interest.
While the payment by the insurer for
the insured value of the lost cargo
operates as a waiver of the insurers
right to enforce the term of the implied
warranty against the assured under the
marine insurance policy, the same
cannot be validly interpreted as an
automatic admission of the vessels
seaworthiness by the insurer as to
foreclose recourse against the common
carrier for any liability under the
contractual obligation as such common
carrier. (Delsan Transportation Lines vs.
CA, 364 SCRA 24)
Seaworthiness
A relative term depending upon the
nature of the ship, voyage, service and
goods, denoting in general a ships
fitness to perform the service and to
encounter the ordinary perils of the
voyage, contemplated by the parties to
the policy (Sec. 114).
GENERAL RULE: The warranty of
seaworthiness is complied with if the
ship be seaworthy at the time of the
commencement of the risk. Prior or
subsequent unseaworthiness is not a
breach of the warranty nor is it material
that the vessel arrives in safety at the
end of her voyage.
EXCEPTIONS:
1. In the case of a time policy, the ship
must
be
seaworthy
at
the
commencement of every voyage she
may undertake
2. In the case of cargo policy, each
vessel upon which the cargo is
shipped or transshipped, must be
seaworthy at the commencement of
each particular voyage
17
LOSS
1. Total:
a. Actual i. Total destruction;
ii. Irretrievable loss by sinking;
iii. Damage rendering the thing
valueless; or
iv. Total deprivation of owner of
possession of thing insured.
(Sec. 130)
b. Constructive i. Actual loss of more than
of the value of the object;
ii. Damage reducing value by
more than of the value of
the vessel and of cargo; and
iii. Expense of transshipment
exceed of value of cargo.
(Sec. 131, in relation to Sec.
139)
In case of constructive
total loss, insured may:
1. Abandon goods or
vessel to the insurer and
claim for whole insured
value (Sec. 139), or
2. Without abandoning
vessel, claim for partial
actual loss. (Sec. 155)
2. Partial: That which is not total (Sec.
128).
AVERAGE
Any extraordinary or accidental
expense incurred during the voyage for
the preservation of the vessel, cargo, or
both, and all damages to the vessel and
cargo from the time it is loaded and the
voyage commenced until it ends and the
cargo unloaded.
GENERAL
PARTICULAR
vessel
or
cargo;
2. Part of the
vessel or cargo
was sacrificed
deliberately;
3. Sacrifice must
be
for
the
common safety
or
for
the
benefit of all;
4. Sacrifice must
be made by
the master or
upon
his
authority;
5. It must be not
be caused by
any fault of
the
party
asking
the
contribution;
6. It
must
be
successful, i.e.
resulted in the
saving of the
vessel
or
cargo; and
Necessary.
RIGHT OF INSURED IN CASE OF
GENERAL AVERAGE
GENERAL RULE: The insured may
either hold the insurer directly liable for
the whole of the insured value of the
property sacrificed for the general
benefit, subrogating him to his own right
of contribution or demand contribution
from the other interested parties as soon
as the vessel arrives at her destination
EXCEPTIONS:
1. After the separation of interests
liable to contribution
2. When the insured has neglected or
waived his right to contribution
FPA Clause (Free From Particular
Average)
A clause agreed upon in a policy of
marine insurance in which it is stated
that the insurer shall not be liable for a
particular average, such insurer shall be
free therefrom, but he shall continue to
be liable for his proportion of all general
average losses assessed upon the thing
insured. (Sec. 136)
18
ABANDONMENT
The act of the insured by which, after
a constructive total loss, he declared the
relinquishment to the insurer of his
interest in the thing insured. (Sec. 138)
Requisites for validity:
1. There
must
be
an
actual
relinquishment by the person insured
of his interest in the thing insured
(Sec. 138);
2. There must be a constructive total
loss (Sec. 139);
3. The abandonment be neither partial
nor conditional (Sec. 140);
4. It must be made within a reasonable
time after receipt of reliable
information of the loss (Sec. 141);
5. It must be factual (Sec. 142);
6. It must be made by giving notice
thereof to the insurer which may be
done orally or in writing (Sec. 143);
and
7. The notice of abandonment must be
explicit and must specify the
particular cause of the abandonment
(Sec. 144).
Effects:
1. It is equivalent to a transfer by the
insured of his interest to the insurer
with all the chances of recovery and
indemnity
(Transfer
of
Interest)(Sec.146)
2. Acts done in good faith by those who
were agents of the insured in respect
to the thing insured, subsequent to
the loss, are at the risk of the
insurer and for his benefit. (Transfer
Of Agency)(Sec.148)
If an insurer refuses to accept a valid
abandonment, he is liable upon an
actual total loss, deducting form the
amount any proceeds of the thing
insured which may have come to the
hands of the insured. (Sec.154)
CO-INSURANCE
A marine insurer is liable upon a
partial loss, only for such proportion of
the amount insured by him as the loss
bears to the value of the whole interest
of the insured in the property insured.
(Sec. 157)
When the property is insured for less
than its value, the insured is considered
REINSURANCE
A percentage in the
value of the insured
property which the
insured himself
assumes to act as
insurer to the extent
of the deficiency in
the insurance of the
insured property. In
case of loss or
damage, the insurer
will be liable only for
such proportion of
the loss or damage as
the amount of the
insurance bears to
the designated
percentage of the
full value of the
property insured.
(Bar Review
Materials in
Commercial Law,
Jorge Miravite, 2002
ed.)
19
Prerequisites to recovery:
1. Notice of loss must be immediately
given, unless delay is waived expressly or
impliedly by the insurer
2. Proof of loss according to best
evidence obtainable. Delay may also be
waived expressly or impliedly by the
insurer
HOSTILE FIRE
FRIENDLY FIRE
Measure of Indemnity
1. Open policy: only the expense
necessary to replace the thing lost or
injured in the condition it was at the
time of the injury
2. Valued policy: the parties are bound
by the valuation, in the absence of fraud
or mistake
Note: It is very crucial to determine
whether a marine vessel is covered by a
marine insurance or fire insurance. The
determination is important for 2 reasons:
1. Rules on constructive total loss
and abandonment applies only
to marine insurance;
2. Rule on co-insurance applies
primarily to marine insurance;
3. Rule on co-insurance applies to
fire insurance only if expressly
agreed upon. (Commercial Law
Reviewer, Aguedo Agbayani,
1988 ed.)
ALTERATION AS A SPECIAL GROUND
FOR RESCISSION BY INSURER
Requisites:
1. The use or condition of the thing
is
specifically
limited
or
stipulated in the policy;
2. Such use or condition as limited
by the policy is altered;
3. The alteration is made without
the consent of the insurer;
4. The alteration is made by means
within the control of the
insured;
5. The alteration increases the risk;
(Sec. 168) and
Examples:
personal
accident,
robbery/theft insurance
2. Insurance against specified perils
which may give rise to liability on the
part of the insured for claims for
injuries to or damage to property of
others. (third party liability insurance)
Insurable interest is based on the
interest of the insured in the safety of
persons, and their property, who may
maintain an action against him in case of
their injury or destruction, respectively.
Examples: workmens compensation,
motor vehicle liability
In a third party liability (TPL)
insurance contract, the insurer assumes
the obligation by paying the injured
third party to whom the insured is liable.
Prior payment by the insured to the third
person is not necessary in order that the
obligation may arise. The moment the
insured becomes liable to third persons,
20
NO ACTION CLAUSE
A requirement in a policy of liability
insurance which provides that suit and
final judgment be first obtained against
the insured; that only thereafter can the
person injured recover on the policy.
(Guingon vs. Del Monte, 20 SCRA 1043)
Claimants/victims
may
be
a
passenger or a 3rd party
It applies to all vehicles whether
public and private vehicles.
Note: It is the only compulsory insurance
coverage under the Insurance Code.
21
Method of coverage
1. Insurance policy
2. Surety bond
3. Cash deposit
Passenger Any fare-paying person
being transported and conveyed in and
by a motor vehicle for transportation of
passengers for compensation, including
persons expressly authorized by law or
by the vehicles operator or his agents to
ride without fare. (Sec. 373[b])
Third Party Any person other than the
passenger, excluding a member of the
household or a member of the family
within
the
second
degree
of
consanguinity or affinity, of a motor
vehicle owner or land transportation
operator, or his employee in respect of
death or bodily injury arising out of and
in the course of employment. (Sec.
373[c])
No-Fault Clause
A clause that allows the victim
(injured person or heirs of the deceased)
to an option to file a claim for death or
injury without the necessity of proving
fault or negligence of any kind.
Purpose: To guarantee compensation
or indemnity to injured persons in motor
vehicle accidents.
Rules:
1. Total indemnity - maximum of P5,000
2. Proofs of loss a. Police report of accident;
b. Death certificate and evidence
sufficient to establish proper payee;
c. Medical report and evidence of
medical or hospital disbursement.
3. Claim may be made against one motor
vehicle only
4. Proper insurer from which to claim a. In case of an occupant: Insurer
of the vehicle in which the occupant is
riding, mounting or dismounting from;
b. In any other case: Insurer of the
directly offending vehicle. (Sec. 378)
The claimant is not free to choose
from which insurer he will claim the no
fault indemnity as the law makes it
mandatory that the claim shall lie
against the insurer of the vehicle in
which the occupant is riding, mounting
22
C. Cooperation Clause
A clause which provides in essence
that the insured shall give all such
information and assistance as the insurer
may
require,
usually
requiring
attendance at trials or hearings.
XX. SURETYSHIP
An agreement whereby a surety
guarantees the performance by the
principal or obligor of an obligation or
undertaking in favor of an obligee. (Sec.
175)
It
is
essentially
a
credit
accommodation.
It is considered an insurance contract
if it is executed by the surety as a
vocation, and not incidentally. (Sec. 20
When the contract is primarily drawn
up by 1 party, the benefit of doubt goes
to the other party (insured/obligee) in
case of an ambiguity following the rule
in contracts of adhesion. Suretyship,
especially in fidelity bonding, is thus
treated like non-life insurance in some
respects.
Nature of liability of surety
1. Solidary;
2. Limited to the amount of the bond;
3. It is determined strictly by the terms
of the contract of suretyship in
relation to the principal contract
between the obligor and the obligee.
(Sec. 176)
SURETYSHIP
PROPERTY
INSURANCE
Accessory contract
3 parties: surety,
obligor and oblige
Credit
accommodation
Surety can recover
from principal
Principal contract
2 parties: insurer
and insured
Contract
of
indemnity
Insurer has no such
right; only right of
subrogation
May be cancelled
unilaterally either by
insured or insurer on
grounds provided by
law
No need of
acceptance by any
third party
Bond can be
cancelled only with
consent of obligee,
Commissioner or
court
Requires
acceptance of
obligee to be valid
Risk-shifting device;
premium paid being
in the nature of a
service fee
Risk-distributing
device; premium paid
as a ratable
contribution to a
common fund
23
FIRE INSURANCE
Contract
of
investment not of
indemnity
Valued policy
May be transferred
or assigned to any
person even if he
has no insurable
interest
Consent of insurer is
not essential to
validity of
assignment
Contingency that is
contemplated is a
certain event, the
only uncertainty
being the time when
it will take place
A long-term
contract and cannot
be cancelled by the
insurer
Beneficiary is under
no obligation to
prove actual
financial loss
Contract of indemnity
Open or valued policy
The
insurable
interest
of
the
transferee
or
assignee is essential
Consent of insurer
must be secured in
the absence of waiver
Contingency insured
against may or may
not occur
May be cancelled by
either party and is
usually for a term of
one year
Insured is required to
submit proof of his
actual pecuniary loss
as a condition
precedent to
collecting the
insurance.
24