PROVISION INDIVIDUAL LIFE GROUP LIFE INDUSTRIAL LIFE

Grace period 30 days 30 days 30 days

Incontestability clause After 2 years After 2 years After 2 years
Policy: entire contract
Misstatement of age Coverage/benefits Premiums or benefits Coverage/benefits
Participating policy
CSV option 3 years 3 or 5 years
Right to borrow on policy
CSV and paid-up tables
Installment and annuity
payment tables
Reinstatement provisions 3 years 2 years
Facility of payment Limited to 500 Unlimited

1. What is industrial life insurance? 235 (1) The term industrial life insurance shall mean that form of life
insurance under which the premiums are payable either monthly or oftener, if the face amount of insurance
provided in any policy is not more than 500x that of the current statutory minimum wage in the City of
Manila, and if the words industrial policy are printed upon the policy as part of the descriptive matter.

2. What is the special rule with respect to non-payment of premiums in industrial life? 235 (2) An industrial life
policy shall not lapse for nonpayment of premium if such nonpayment was due to the failure of the company
to send its representative or agent to the insured for the purpose of collecting the premium. Provided, that
the provisions of this paragraph shall not apply when the premium on the policy remains unpaid for a period
of 3 months or 12 weeks after the grace period.

3. In industrial life, what is the consequence if 3 full years premiums are paid and the policy lapses? 236 (f) The
policy shall be converted into a stipulated form of insurance.

4. In relation to no. 3, what is the consequence when 5 full years premiums had been paid in industrial and the policy
lapse? 236 (f) A specified cash surrender value shall be available, in lieu thereof the stipulated form of
insurance, at the option of the policy holder.

5. In industrial life, what is the period within which payment of the cash surrender value should be made/paid? 236 (g)
The insurer may defer payment for not more than 6 months after the application has been made.

6. What is the minimum period during which a person can file a case based on an industrial life policy? Or what is the
rule with respect to cause of action with regard to industrial life insurance policy? 237 (d) A provision that limits
the time within which any action at law or in equity may be commenced to less than 6 years after the cause of
action shall accrue is void.

7. When is an insurance contract deemed perfected? Cognition theory: at the time the insured-applicant has
knowledge of the approval of his application.

8. What’s the difference between a cover note and a provisional receipt? Section 52. Cover notes may be issued to
bind insurance temporarily pending the issuance of the policy. A (provisional) binding deposit receipt in
question is merely as acknowledgment. Section 79. An acknowledgment in a policy or contract of insurance
or the receipt of premium is conclusive evidence of payment, so far as to make the policy binding.

9. What happens when death occurs during the grace period? 233 (a) The amount of such premium with interest
may be deducted from the amount payable under the policy in settlement.

10. What happens to the insurance policy in case there is nonpayment of premiums during war? Policy had lapsed.
Constantino v. Asia Life The parties contemplated uninterrupted operation of the contract even if armed
conflict should ensue. The non-payment of premiums is such a vital defense of insurance companies.