Professional Documents
Culture Documents
University of Mindanao
College of Legal Education
General Non-Life
Non-Life
Life Insurance
Concepts Insurance
Summary of
Payment of Grounds for
Amendments in
Proceeds Rescission
Insurance Code
PDIC Law
Insurance Code
• General principles
• Life Insurance
• Non-Life Insurance
• Payment of Proceeds
• The DST under Section 185 of the 1997 Tax Code is imposed
on the privilege of making or renewing any policy of
insurance (except life, marine, inland and fire insurance),
bond or obligation in the nature of indemnity for loss,
damage, or liability.
(b) The rules of the association, notwithstanding anything in the Corporation Code to the
contrary, provide the following:
CONTINGENT UNKNOWN
EVENT EVENT
Contingent Event
• Example: Death
Damnify v. Create a liability
• May obtain a policy loan, surrendering the policy, receiving the proceeds of
the policy, and giving the minor's consent to any transaction on the policy
What one insured gains is not at the Essence is whatever one person wins
expense of another insured. The entire from a wager is lost by the other
group of insureds provides through the wagering party.
premiums paid, the funds which make
possible the payment of all claims;
Group
Industrial
Insurance
Marine
Casualty
Fire
Non-Life
Suretyship
NEW
Life Insurance
• (2) Motor vehicles with an authorized capacity of from twelve (12) to twenty-five
(25) passengers: Forty thousand pesos; (P40,000.00);
• (3) Motor vehicles with an authorized capacity of from six (6) to eleven (11)
passengers: Thirty thousand pesos; (P30,000.00);
• (4) Motor vehicles with an authorized capacity of five (5) or less passengers: Five
thousand pesos (P5,000.00) multiplied by the authorized capacity.
Compulsory Motor Vehicle Liability OR Third
Party Liability
• (1) Private Cars
General Non-Life
Life Insurance
Concepts Insurance
Summary
Summary of
of
Payment of Grounds for
Amendments
Amendments in in
Proceeds Rescission
Insurance
Insurance Code
Code
PDIC
PDIC Law
Law
PART TWO:
LIFE INSURANCE
Procedure
• death
•Actual death
•Living death
•Retirement death
Actual Death
Cessation of life
Insurer
•• Annuitant
Annuitant gives
gives • Death of annuitant
money
money to
to insurer
insurer or appointed
• Insurer becomes the persons
debtor extinguishes
• Insurer must give obligation to give
pension to pension
annuitant or
End of
Annuitant designated person
obligation
Retirement Death
•Debtor-Creditor
•Employer-Employee - El Oriente v.
Posadas
•Business partners
Section 10(d)
Person in whose estate an interest is
dependent
•Person is given the right to use a
house
Insurer
Insured
NEW
Insurer: Section 6
•Right to transfer/bequeath-pass by
transfer, will or succession to any
person whether he has insurable
interest or not; notice to insurer not
required
Cestui Que Vie
• amount to be insured
• premium
• life insured
• risks
Required Provisions
•Surrender options/NON-DEFAULT
OPTIONS – if the policyholder cannot
continue paying the premiums, he has
some options which will not put to
waste what he has paid. However,
these options are available only upon
payment of at least 3 annual
premiums
Non-Default/Surrender Options
• Cash Surrender Value 227(f); 230(f) and
(g)
• payment of at least 3 annual premiums
• not less than the reserve on the policy
• Extended Insurance
• At least three annual premiums
• limited time, same face value
Non-Default/Surrender Options
• Paid-Up Insurance
• At least three annual premiums
• same period, lower proceeds
• insolvent insurer
• insurer’s negligence or fault
• insurer waives the right to
payment
When is non-payment excused?
If the cestui dies during the grace period, there can be
recovery
If the cestui dies during the duration of the cover notes,
there can be recovery
General Non-Life
Non-Life
Life
Life Insurance
Insurance
Concepts Insurance
Summary of
Payment of Grounds for
Amendments in
Proceeds Rescission
Insurance Code
PDIC Law
PART THREE
NON-LIFE INSURANCE
Topics
•What may be insured against
•Insurable interest
• Parties
•A sells the car to B. The policy was not included in the sale.
•If the car is carnapped, neither A nor B can recover under the
policy.
Amount overinsured =
Amount of insurance – value of property
P300,000/P1,800,000.00
= 1/6
Ratable Return
Insured Beneficiary
The beneficiary
• In case of loss:
• A’s insurer = P500,000
• B’s insurer = P500,000
Can ship owner get insurance for:
• Expected freightage (Sec. 105)
• Expected freightage which in the ordinary and probably
course of things he would have earned but for the
intervention of the peril insured against
• Independent appraiser
values it at P10 Million
General Non-Life
Non-Life
Life
Life Insurance
Insurance
Concepts Insurance
Summary of
Payment of Grounds for
Amendments in
Proceeds Rescission
Insurance Code
PDIC Law
PART FOUR:
PAYMENT OF PROCEEDS
AND FILING OF CLAIMS
Basic Rule in Recovery
•Sec. 89. An insurer is not liable for a
loss caused by the willful act or
through the connivance of the
insured; but he is not exonerated by
the negligence of the insured, or of
the insurance agents or others.
In Life Insurance
WHEN
General Rule: Paid immediately upon maturity of
the policy (death, survival, cessation or
continuance of life)
Exceptions:
proceeds are payable in installments
annuity
If maturity is due to death
Proceeds are paid within 60 days from
presentation of the claim and proof of
death
• Must be written
Loss in
marine
Total Partial
Actual Constructive
Total v Partial Loss
• Every loss which is not total is partial (128)
Administrative
Adjudicatory
NEW
Insurance Commissioner
• Section 437. The Insurance Commissioner shall
be appointed by the President of the Republic
of the Philippines for a term of six (6) years
without reappointment and who shall serve as
such until the successor shall have been
appointed and qualified. If the Insurance
Commissioner is removed before the
expiration of his term of office, the reason for
the removal must be published.
NEW
Adjudicatory Powers
Adjudicatory Powers
Administrative Powers
Administrative Powers
Administrative Powers
General Non-Life
Non-Life
Life
Life Insurance
Insurance
Concepts Insurance
Summary
Summary of
of
Payment of Grounds
Grounds for
for Amendments
Amendments in in
Proceeds Rescission
Rescission Insurance
Insurance Code
Code
PDIC Law
PART FIVE
•Misrepresentation
May be intentional or
unintentional
Requisites of Concealment
(a)party knows the fact which he
neglects to communicate or
disclose
Sec. 45 – materiality is
determined using the same test
in concealment (Sec. 31)
Misrepresentation as a ground to
rescind
entitled to rescind from the time the
representation becomes false
eventual falsity of a
representation as to
expectation without fraud,
does NOT avoid a marine
insurance contract
Breach of Warranty
Warranty
•Either express or implied
Illegal ventures
Bar 2000
•What warranties are implied in marine
insurance? (2%)
Seaworthiness
•Section 114 - a ship is
seaworthy if reasonable fit to
perform the service, and to
encounter the ordinary perils
of the voyage contemplated
by the parties to the policy
Seaworthiness
• Section 116 - extends not only to the
seaworthiness of the ship itself but
requires that it be properly laden,
provided with competent master,
sufficient number of competent officers
and seamen, requisite appurtenances and
equipment and other implements for the
voyage
Improper Deviation
•Section 123 - deviation is a departure
from the course of the voyage
insured or unreasonable delay in
pursuing the voyage or the
commencement of an entirely
different voyage
Proper Deviation, 124
•caused by circumstances outside the
control of the master or owner
General Non-Life
Non-Life
Life
Life Insurance
Insurance
Concepts Insurance
Summary of
Payment of Grounds
Grounds for
for Amendments in
Proceeds Rescission
Rescission Insurance Code
PDIC Law
REPUBLIC ACT NO. 9576
April 29, 2009
• petition for certiorari may only be filed within thirty (30) days from
notice of denial of claim for deposit insurance.
INSURED DEPOSITS
•amount due to any bona fide depositor
for legitimate deposits in an insured bank
net of any obligation of the depositor to
the insured bank as of date of closure,
but not to exceed Five hundred thousand
pesos (P500,000.00).
INSURED DEPOSIT
•add together all deposits in the bank
maintained in the same right and
capacity for his benefits either in his
own name or in the name of others .
INSURED DEPOSIT
• A joint account regardless of whether the
conjunction 'and,' 'or,' 'and/or' is used, shall be
insured separately from any individually-owned
deposit account:
Self-Regulatory Organizations