5.3, 5.4, 6.

1 ab

5.3 Explain Double Insurance and Over Insurance

A double insurance exists where the same person is insured by several insurers
separately in respect to the same subject and interest. The requisites of double
insurance are: (1) The person insured is the same; (2) Two or more insurers insuring
separately; (3) The subject matter is the same; (4) The interest insured is also the
same; and (5) The risk or peril insured against is likewise the same.
There is over-insurance when the amount of the insurance is beyond the value of
the insured's insurable interest. In double insurance, there may be no overinsurance as when the sum total of the amounts of the policies issued does not
exceed the insurable interest of the insured.
While in double insurance there are always several insurers, in over-insurance there
may be only one insurer involved.
From the above explanation, double insurance and overinsurance may exist at the
same time or neither may exist at all. Double insurance is the term used instead of
"co-insurance" when the sums insured exceed the insurable interest. In such case,
there is "over-insurance" by "double insurance."
5.4 Explain Multiple or Several Interest on Same Property
The interest may be in the property itself (e.g., ownership), or any relation thereto (e.g., interest
of a trustee or a commission agent), or liability in respect thereof (e.g., interest of a carrier or
depository of goods). The principle may be stated generally that anyone has an insurable interest
in property who derives a benefit from its existence or would suffer loss from its destruction.
The mortgagor and the mortgagee have each an insurable interest in the property mortgaged
(Sec. 13.), and this interest is separate and distinct from the other. Consequently, insurance
taken by one in his own name only and in his favor alone, does not inure to the benefit of the
other. (Sec. 53.) And in case both of them take out separate insurance policies on the same
property, or one policy covering their respective interests, the same is not open to the objection
that there is double insurance, (see Sec. 93.)

6.1 Offer and Acceptance/Consensual

In insurance transaction, it is important to know who makes the offer and who
accepts the offer. The applicant usually makes the offer to the insurer through an
application for insurance which is usually attached to policy and made a part of the
insurance contract.
(1) In property and liability insurance. It is the insured who technically makes an
offer to the insurer, who accepts the offer, rejects it, or makes a counter-offer. The
offer is usually accepted by an insurance agent on behalf of the insurer.
(2) In life and health insurance. The situation depends upon whether the insured
pays the premium at the time he applies for insurance.

a. Delay in Acceptance
b. Delivery of Policy
The delivery of the policy is important in at least two ways: (a) as evidence of the
making of a contract and of its terms; and (b) as communication of the insurer's
acceptance of the insured's offer.