How did Insurance Law develop in the Philippines?

to make it relevant to the changes that have transpired in the industry but also, in anticipation of future transformation that it is bound to undergo considering the growing sophistication of industries across the globe,"

The Presidential Degree 1460 consists of 6 chapters 205 sections.

Chapter 1: Insurance in General Chapter 2: Marine Insurance Chapter 3: Fire Insurance Chapter 4: Life and Death Insurance Chapter 5: Insurance Companies Chapter 6: Final Provision

Section 2: Insurance is a contract whereby one undertakes for a consideration to indemnify another against loss, damage, or liability arising from an unknown or contingent event. WHAT IS INDEMNIFY?
CONTRACT OF INSURANCE

CONTRACT OF INDEMNITY

What are the characteristics of an insurance contract?

1. Consensual 2. Voluntary 3. Aleatory 4. Conditional 5. Personal

Who are the parties to the contract of insurance?

What is an Insurer? What is an Insured ? Who are the Beneficiaries?

Classes of Insurance (Non-life)

Fire Insurance
lightning windstorm tornado earthquake and other allied risks

Classes of Insurance (Non-life)

How to measure of Indemnity in Fire Insurance 1. Open policy 2. Valued policy

Classes of Insurance (Non-life)

Classes of Insurance (Non-life)

- Example of Casualty Insurance Casualty Insurance/Accident - Personal Accident/Health Insurance Insurance

Robbery/Theft Insurance -arising from accidents or motor vehicle liability mishaps Public Liability Insurance Compensation Insurance

Classes of Insurance(Life)
1. Ordinary Life, General Life or Old Line Policy 2. Group Life 3. Industrial Life

Classes of Insurance
Suretyship

What are the risk that may be insured?

Section 3.Any contingent or unknown event, whether past or future, which may damnify a person having an insurable interest, or create a liability against him, may be insured against, subject to the provisions of this chapter.

What cannot be insured?

Section 4.The preceding section does not authorize an insurance for or against the drawing of any lottery, or for against any chance or ticket in a lottery drawing a prize.

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.

What is a public enemy?

INSURABLE INTEREST Is essential for the validity and enforceability of the contract.
WHAT IS INSURABLE INTEREST?

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

Section 10.Every person has an insurable interest in the life and health: (a) Of himself, of his spouse and of his children; (b) Of any person on whom he depends wholly in part for education or support, or in whom he has a pecuniary interest; (c) Of any person under a legal obligation to him for the payment of money, or respecting property or services, Of which death or illness might delay or prevent the performance; and (d) Of any person upon whose life any estate or interest vested in him depends.

When will be the time that the Beneficiary will be forfeited to the proceeds of the Insurance?

REPRESENTATION AND CONCELMENT

Section 26.A neglect to communicate that which a party knows and ought to communicate is called a concealment.

What is a representation?
A representation is a factual statement made by the insured at the time of, or prior to, the issuance of the policy to give, information to the insurer and otherwise induce him to enter into the insurance contract.

What is the difference between a representation and concealment?

POLICY
It is a formal document which provides of such a contract. The policy must contain statements of offer, acceptance and consideration.

Why are the terms of the policy important?

Is the policy and the Contract one and the same thing?

PART OF THE CONTRACT OF INSURANCE What is a rider?

It is a printed or typed stipulation contained on a slip of paper attached to the policy and forming an integral part of the policy

What are warranties? What are clauses? What is an endorsement?

What does the Policy of Insurance includes?

OTHER TYPES OF INSURANCE

OVER-INSURANCE DOUBLE INSURANCE REINSURANCE

What is an Insurance Corporation? What is a Domestic Insurance Corporation? What is Conduct of insurance business by persons not Incorporated? What is an agent?

The Insurance Commission

Insurance act of July1915 Office of the Insurance Commissioner Made the Insular Treasurer As Insurance Commissioner ex-officio

How an Insurance Company Operates

Requirements
The approval of the Insurance Commissioner must be first be solicited. Application for the issuance of COA must be filed before the commission.

Representation
May be oral or written and may be made at the time or before the issuance of the policy.
Policy -offer -acceptance -consideration

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 Insurance company to the customer.

Reserve requirements
-ensure that companies set aside enough money to pay anticipated policy benefits.

Insurance Companies make money in two ways:

By charging enough premiums to cover unexpected payouts. By earning investment return using the collected premiums.

Disclosure
Importance

Completeness and accuracy of insurance information is critical.

Product pricing
Result in setting a premium rate
Objective: Allow the company to pay all of the products benefits and associated expenses. Return modest profit.

Underwriting
The process -Assess and classify the proposed insured degree of risk.
-Make a decision to accept or decline the risk.