de enero de 2022, los consejos

Liabilities arising out of acts of negligence, which are also criminal, are also insurable on. Effect of death of insured through suicide:

The insurer in a life insurance contract shall be liable in case of suicide by the insured committed after the policy has been in force for a period of two years from the date of its issue or its last reinstatement, unless the policy provides a shorter period: provided, however, that suicide committed in a state of insanity shall make the insurer liable regardless of the date of the commission of the suicide (Sec. 180-A)

Where a life insurance policy is made payable to one of the heirs of the person whose life is insured, the proceeds of the policy on the death of the insured belong exclusively to the beneficiary and not to the estate of the person whose life was insured and such proceeds are his individual property and not the property of the heirs of the person whose life was insured. ( DEL VAL vs. DEL VAL, 29 PHIL 534)

the premiums were paid by the conjugal partnership, constitute community property and belong one-half to the husband exclusively, and the other half to the wife. If the premiums were paid partly with paraphernal and partly conjugal funds, the proceeds are in like proportion, paraphernal in part and conjugal in part. (BPI vs. POSADAS , 56 PHIL 215)

According to the Article 2012 of the New Civil Code that any person who is forbidden from receiving any donation under Art. 739 cannot be named beneficiary of a life insurance policy by the person who cannot make a donation to him. Both are founded upon the same consideration which is liberality. (INSULAR LIFE vs. EBRADO 80 SCRA 181)

B.PROPERTY

1. An existing interest

2. An inchoate interest founded on an existing interest i. An example is the right to inherit

3. An expectancy interest with an existing interest in that out of which the expectancy arises.

When can you insured an inherited property?

When you already have it, because it is already an existing interest.

Contract of Surety shall also be deemed an insurance contract if made by a surety who or which is doing an insurance business, Doing an insurance business or transacting insurance business is:

1. Making or proposing to makes an insurer, any insurance contract.

2. Making or proposing to make, as surety, any contract of suretyship as a vocation and not as making incidental to any other legitimate business or activity of the surety; 3. Doing any business including reinsurance business, specifically recognized as doing an

insurance business;

4. Doing or proposing to do any business in substance equivalent to any of the forgoing in a manner designed to evade the provisions of the insurance code.

Nature and characteristics of contract of insurance:

1. It is an aleatory contract – the liability of the insurer depends upon the happening of a contingent event.

2. It is a contract of indemnity for non-life – recovery is commensurate to loss because it is a contract of indemnity in non-life. Event insured against must be the proximate cause of loss, damage, or injury

3. It is a personal contract - an insurer contracts with reference to the character of the insured and vice versa.

4. It is executory and conditional on the part of the insurer because upon the happening of the event or peril insured, the conditions having been met, it has the obligation to execute the contract by paying the insured. It is executed on the part of the insured after the payment of the premium.

5. It is one of perfect in good faith for both insurer and insured, but more so for the insurer, since its dominant bargaining position imposes a stricter liability or responsibility.

6. It is a contract of adhession – insurance companies manage to impose upon the insured prepared contracts which the insured cannot change. Consequently, they are :

a. In case there is no doubt as to the terms of the insurance contract, it is to be construed in its plain, ordinary, and popular sense.

b. If doubtful, ambiguous, or uncertain, it is to be construed strictky against the insurer and liberally in favor of the insured because the latter has no voice in the selection of the words used and the language used is selected by the lawyers of the insurer.

Insurable interest

When no insurance interest the contract is void, because without interest then insured have not suffered loss or damage to be indemnified.

NOTE: Expectancy is not insurable unless coupled with an interest in the thing from which it shall arise.

Example: an owner of a business can insure against a contingency which may cause loss of profits resulting from the cessation or interruption of his business. (See Sec. 14, ICP)

NOTE: Insurable interest must exist in the same person both at the perfection of the contract as well as the time of loss. In between, the effect of loss of insurable interest is merely to suspend the policy. (Sec. 20, ICP)

Exceptions:

1. in case of life, health and accident insurance (Sec. 20);

2. change in interest results after occurrence of an injury which results in a loss (Sec. 21)

3. change in interest in one or more several distinct things separately insured by one policy (Sec. 22);

4. change in interest by will or succession on death of insured (Sec. 23); 5. transfer of interest by one of several partners, joint partners, 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 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).

Must the beneficiary have an insurable interest in the property insured?

YES, as no contract or policy of insurance on property shall be enforceable EXCEPT for the benefit of some person having insurable interest in the property insured.

EXAMPLE: The owner insures his building against fire naming his nephew as beneficiary. In case of loss – only the owner can recover – what is not enforceable is the designation of beneficiary – not the entire policy itself.

IN RELATION TO THE NEED FOR THE EXISTENCE OF INSURABLE INTEREST, NOTE HOWEVER:

That a change of interest in any port of a thing insured in accompanied by a corresponding change of interest in the insurance suspends the insurance to an equivalent extent until interest in the thing and interest in the insurance is vested in the same person.

Example:

A buyer of a property insured by the previous owner who has not obtained a transfer of the insurance policy in his name – cannot recover.

RELATED QUERY – How about the seller – NO – no insurable interest at the time of loss – (Sec 19) WHAT CHANGE IS CONTEMPLATED

An absolute transfer of the property NOT LIFE A LEASE / MORTGAGE EXCEPTIONS –

1. Life, Health or accident insurance because they are not contracts of indemnity and insurable interest is not required at the time of loss.

2. A change of interest after occurrence of an injury and results in loss – does not affect the right of the insured to indemnity – (Sec 21)

- after loss – the liability of the insurer is fixed

3. a change of interest in one or more several distinct things, separately insured by one policy, does not avoid the insurance as to the others. (Sec 22)

4. a change of interest by will or succession on the death of the insured does not avoid the insurance – his interest passes on the thing insured (Sec 23)

5. a transfer of interest by one or several partners, joint owners, or owners in common, who are jointly insured – to the others, does not avoid insurance even though it has been agreed that insurance shall lease upon an allocation of the thing insured.

NOTE –

- there must be not stipulation against it – otherwise it is avoided. - transfer to strangers avoid the policy

6. when notwithstanding a prohibition, the consent of the insurer is obtained

7. when the policy is so fraud that it will insure to the benefit of whomsoever may become the owner during the continuance of the risk.

INSURABLE INTEREST IN LIFE

INSURABLE INTEREST IN