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there
is
valuable
consideration called the premium.
11.
Uberrimae Fidae the contract of
insurance is one of perfect good faith which
required both the insurer an insured to
disclose among affecting the risk of which he
is aware, or material fact, which the
applicant knows, and those he ought to
know.
D. Classes
1. Marine an insurance against risks
connected with navigation, to which a ship,
cargo, freightage, profits or other insurable
interest I moving property, may be exposed
during a certain voyage or a fixed period of
time.
2. Fire a contract by which the insurer for a
consideration agrees to indemnify the
insured against loss of, or damage to,
property by hostile fire, including loss by
lightning, windstorm, tornado or earthquake
and other allied risks, when such risks are
covered by extension to fire insurance
policies or under separate policies.
3. Casualty covering loss or liability arising
from accident or mishap, excluding those
falling under other types of insurance such
as fire or marine.
4. Suretyship a contract of suretyship shall
be deemed to be an insurance contract,
within the meaning of this code, only if made
2. In property
- The policy may not 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.
Effect of transfer without consent: The
insurance policy will be suspended and
will not be avoided until the interest in
the thing and the interest in the insurance
are vested in the same person.
3. Double insurance (duplicate protection
or dual insurance) - exists where the same
person is insured by several insurers
separately in respect to the same subject
and interest. (sec95)
- it is provided when two companies deal
with the same individual and undertake to
indemnify the person against the same
losses.
There is double insurance when:
a. the same person is insured
b. by two or more insurers
c. with respect to the same subject
matter
d. involving the same insurable interest;
and
e. against the same risk
Over insurance by double insurance (sec96)
- the insurer is not liable for the total
amount of the insurance taken, his
liability being limited to the property
insured. Hence, the insurer is not entitled
to
that
portion
of
the
premium
corresponding to the excess of the
Insurance
Contracts
through
correspondence follow the Cognition
theory an acceptance made by letter
shall not bind the person making the offer
except from the time it came to is
knowledge.
2. Premium payment
Cash and carry rule No insurance policy
issued or renewal is valid and binding until
actual payment of the premium. Any
agreement to the contrary is void. (sec77)
Reason: the insurer upon issuance of the
policy, is immediately exposed to liability for
the risks insured against; hence it is entitled
to be paid premium for extending protection
to the insured immediately upon such
exposure.
Exceptions: (LACIE):
a. In case of life and industrial life whenever
the grace period provision applies (sec77)
b. Where there is an acknowledgment in the
contract or policy of insurance that the
premium had already been paid (sec78)
c. If the parties have agreed to the payment
of the premium in installments and partial
payment has been made at the time of
the loss
d. Where a credit term was agreed upon
e. Where the parties are barred by estoppels
NOTE: sec77 merely preclude the parties
from stipulating that the policy is valid even
if the premiums are not paid
a.
b.
c.
d.