INSURANCE KINDS OF INSURANCE:

Midterm Coverage
1. Private Insurance (SSS, etc)
2. Government Insurance (GSIS)
Enumeration:
GENERAL CLASSIFICATION
ELEMENTS OF INSURANCE:
According to OBJECT:
1. Existence of Insurable interest
1. Life or Health Insurance
2. Risk of loss
2. Property Insurance
3. Assumption of risk
3. Liability Insurance
4. Scheme to distribute actual loss
5. Payment of premium According to SPECIAL TYPES:
CHARACTERISTICS OF INSURANCE 1. Marine Insurance
CONTRACT: [A-U-P-C-U-E] 2. Casualty insurance
3. Life insurance
1. Aleatory
4. Fire insurance
2. Unilateral
5. Compulsory third party liability insurance
3. Personal
(CTPL)
4. Consensual
6. Microinsurance
5. Uberrimae Fidae (Perfect or utmost good
faith) INSURANCE, CLASSIFIED INTO:
6. Executory and Conditional
1. Term insurance
ELEMENTS OF RISK (RISK MUST BE) 2. Whole life insurance
3. Endowment
1. A contingent or unknown event (past or
4. Industrial insurance
future)
5. Ordinary insurance
2. It must damnify the insured or create liability
against him. PROPERTY INSURANCE:
INSURABLE RISK, REQUIREMENT: 1. Fire and Allied Insurance
2. Marine Insurance
1. There just be a large number of homogenous
3. Casualty Insurance
exposure unit
2. The loss must be accidental and
unintentional
3. The loss must be determinable and RIGHTS OF POLICYHOLDER
measurable 1. Financially sound and viable Insurance
4. The loss should not be catastrophic company
5. The chance of loss must be calculable 2. Access to financial information
6. The premium must be economically feasible. 3. To be informed of the license status of
HOW PEOPLE DEAL WITH RISK insurance company
4. To be offered a duly approved insurance
1. Risk avoidance product
2. Risk retention 5. To be informed of the benefits, exclusion and
3. Risk transfer other provisions under the policy
4. Loss control 6. To receive the policy
5. Insurance 7. To efficient service
8. To confidentiality of information
AN INSURANCE WILL BE A WAGER IF:
9. To prompt and fair settlement of claims
1. The beneficiary may freely take the initiative 10. To seek assistance.
in procuring the control
2. The beneficiary has no interest in life
insured. In life insurance, if a beneficiary id
DISQUALIFIED under section 12, the proceeds
GENERAL BENEFITS OF INSURANCE:
thereof shall be paid in the accordance with the
1. It gives peace of mind following rules:
2. It keeps families and business together
1. The forfeited share of the disqualified
3. It increase marginal utility of assets
beneficiary shall pass on the other
4. It facilitates credit transactions
beneficiary
5. It stimulates savings
2. If there are no other beneficiaries, the
6. It provides investment capital
proceeds shall be paid according to policy
7. It provides incentive to business or
contract
individuals
8. It helps in loss prevention
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 3. If there are no other beneficiaries, and there SECTION 14: AN INSURABLE INTEREST IN
is no provision in the policy contract the PROPERTY MAY CONSISTS IN
proceeds shall be paid to the estate of the
1. An existing interest
insured.
2. An inchoate interest founded on an existing
interest
3. An expectancy interest with an existing
GROUNDS FOR DISQUALIFICATION
interest in that of which the expectancy
1. Those made between persons who were arises.
guilty of adultery/concubinage at the time of
the donation
2. Those made between persons found guilty of PERSONS HAVE INSURABLE INTEREST OVER
the same criminal offense, in consideration THE PROPERTY EVEN IF THEY ARE NOT THE
thereof OWNER THEREOF:
3. Those made to a public officer, or his wife,
1. Lessee
descendants and ascendants, by reason of
2. Depositary
his office
3. Usufructuary
4. Borrower in commodatum

PURPOSE OF INSURABLE INTEREST

1. Reduces moral hazard GR: The obligation will not become valid and binding
2. Helps in measuring the loss of the insured if the first premium has not been paid. If the
subsequent premiums have not been paid, the
policies issued will be deemed to have lapsed.
SECTION 10: EVERY PERSON HAS AN
XPS:
INSURABLE INTEREST IN THE LIFE AND
HEALTH 1. Grace period
2. Acknowledgement
1. Of himself, of his wife and his children
3. Agreement/installment
2. Of any person, on whom he depends wholly
4. Credit extension
or in part of education or support, or in whom
5. Estoppel
he has a pecuniary interest
3. Of any person, under a legal obligation to
himself for the payment of money or
HOW TO PREVENT LAPSE OF LIFE INSURANCE
respecting property or service, of which death
or illness might delay or prevent the 1. Grace period
performance 2. Automatic policy loan
4. Of any person, upon whose life any estate or 3. Application of dividend
interest vested in him depends 4. Reinstatement clause

CLASSES OF INSURABLE INTEREST IN LIFE QUALIFICATIONS FOR REINSTATEMENT

INSURANCE
1. Capacity to pay premium
1. Insurable interest in the insured’s life 2. Existence of insurable interest
2. Insurable interest in the life of another person

DOCUMENTS NECESSARY FOR APPROVAL

ARTICLE 195, FC: THE FOLLOWING ARE
OBLIGED TO SUPPORT EACH OTHER 1. Application
2. Cover notes or binders
1. The spouses 3. Riders and endorsement
2. Legitimate ascendants and descendants
3. Parents and their legitimate children and the CLASSIFICATION OF THE PROVISIONS OF AN
Legitimate and illegitimate children of the INSURABLE CONTRACT
latter 1. Declarations
4. Parents and their illegitimate children and the 2. Insuring agreements
Legitimate and illegitimate children of the 3. Exclusions
latter 4. Conditions
5. Legitimate brothers and sisters, whether of
full or half-blood.

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DECLARATIONS (IT INCLUDES THE FF)

1. Identify the insured

2. Describe the property, activity or life insured
3. State the type of coverage purchased
4. The applicable policy limits and the terms of
the coverage
5. Indicate the premium paid for each separate
coverage purchases

REQUISITES OF CANCELLATION OF
INSURANCE CONTRACT

1. Prior notice of cancellation to insured

2. It must be based on the occurrence after
effective date of the policy
3. The notice must be in writing, mailed or
delivered to the named insured or to his
broker with his written authority
4. The notice must state the grounds relied
upon provided in section 64 of IC and upon
request of insured, to furnish facts on which
cancellation is based.

DEVISES WAS DEVELOPED TO ASCERTAIN

AND CONTROL RISKS:

1. Concealment
2. Representation
3. Warranty
4. Condition
5. Exceptions

REQUISITES THAT JUSTIFY ONE PARTY TO

RESCIND THE POLICY ON THE GROUND OF
CONCEALMENT:

1. The party involved must know the fact

concealed or at least he ought to know the
same;
2. The fact concealed must be material
3. No warranty is extended by the party
regarding the fact concealed;
4. The other party does not have the means of
ascertaining.

WHEN THERE IS NO CONCEALMENT

1. Those which the other knows

2. Those which, in the exercise of ordinary care,
the other ought to know, and of which the
former has no reason to suppose him
ignorant;
3. Those of which the other waives
communication
4. Those which approve or tend to prove the
existence of a risk excluded by a warranty
and which are not otherwise material
5. Those which relate to a risk excepted from
the policy and which are not otherwise
material.

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