Law of Insurance in the Philippines

7/28/2019 Law of Insurance in the Philippines

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How did Insurance Lawdevelop in thePhilippines?


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to make it relevant to the

changes thathave transpired in the

industry but also, inanticipation of future

transformation that itis bound to undergo

considering the growingsophistication of industries

across the globe,"


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The Presidential Degree 1460consists of 6 chapters 205

sections.Chapter 1: Insurance in General

Chapter 2: Marine InsuranceChapter 3: Fire Insurance

Chapter 4: Life and Death Insurance

Chapter 5: Insurance Companies

Chapter 6: Final Provision


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Section 2: Insurance is a contract

whereby one undertakes for a considerationto indemnify another against loss, damage, or

liability arising from an unknown or

contingent event.WHAT IS INDEMNIFY?

CONTRACT OF

INSURANCE =

CONTRACT OF

INDEMNITY


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What are the characteristics of an

insurance contract?1. Consensual

2. Voluntary3. Aleatory

4. Conditional

5. Personal


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Who are the parties to the contract of

insurance?

What is an Insurer?

What is an Insured ?

Who are the Beneficiaries?


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Classes of Insurance (Non-life)

Fire Insurancelightning

windstormtornado

earthquake and other

allied risks


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How to measure of Indemnity in

Fire Insurance

1. Open policy2. Valued policy


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Casualty Insurance/AccidentInsurance

-arising from accidents ormishaps

- Example of Casualty Insurance

- Personal Accident/Health Insurance

- Robbery/Theft Insurance

- motor vehicle liability- Public Liability Insurance

- Compensation Insurance


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Classes of Insurance(Life)

1. Ordinary Life, General Life or Old

Line Policy

2. Group Life3. Industrial Life


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Classes of Insurance

Suretyship


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What are the requisites in order that a

person may be insured in a contact of

insurance?

He must be competent to enter into a

contract.He must possess an insurable interest in the

subject of insurance.

He must NOT be a public enemy.


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What is a public enemy?


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INSURABLE INTEREST

Is essential for the validity andenforceability of the contract.

WHAT IS INSURABLE INTEREST?


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What are the kinds of insurable

risks?1) Personal risks life or health risks

2) Property risks loss or damage to property

3) Liability risks involve liability of the insured

for an injury caused to the person or property of

another


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When will be the time that the Beneficiary will be

forfeited to the proceeds of the Insurance?


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POLICYIt is a formal document which provides of such a

contract. The policy must contain statements of offer,

acceptance and consideration.


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Why are the terms of the policy important?

Is the policy and the Contract one and the

same thing?


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PART OF THE CONTRACT OF

INSURANCE

What is a rider?It is a printed or typed stipulation contained on a slipof paper attached to the policy and forming an integral

part of the policy

What are warranties?

What are clauses?What is an endorsement?


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What does the Policy of Insurance

includes?


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What is an Insurance Corporation?

What is a Domestic InsuranceCorporation?

What is Conduct of insurancebusiness by persons not

Incorporated?

What is an agent?


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The InsuranceCommission

Insurance act of July1915Office of the Insurance Commissioner

Made the Insular Treasurer

As Insurance Commissioner ex-officio


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How an Insurance

Company Operates


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Requirements

The approval of the Insurance

Commissioner must be first be

solicited.

Application for the issuance of COA

must be filed before the commission.


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Representation

May be oral or written and may be made at the time or

before the issuance of the policy.

Policy

-offer

-acceptance

-consideration


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Premiums and Payouts

Premiums the amount gained by the insurance

company.

-they pool money to pay claims

-Insurance company pays for expenses

-Insurance company invest the money

Payouts the amount paid by the Insurancecompany to the customer.


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Reserve requirements-ensure that companies set aside enough

money to pay anticipated policy benefits.


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Insurance Companies make money

in two ways:

By charging enough premiums to coverunexpected payouts.

By earning investment return using thecollected premiums.


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DisclosureImportance

Completeness and accuracy of

insurance information is critical.


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Underwriting

The process

-Assess and classify the proposed

insured degree of risk.

-Make a decision to accept or decline

the risk.

Date post:	03-Apr-2018
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Law of Insurance in the Philippines

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