QuestionsQuestions (Act No. 3870)
It amends Section 3 of Act No. 2427 (as amended by Act No. 3696) by inserting a clause that allows minors (age 18 or more) to contract for life, health, and accident insurance under specified conditions.
Section three of Act No. 2427, as amended by Act No. 3696, was further amended by adding at the end a separate paragraph containing the minors enabling clause.
The law applies to any minor of the age of eighteen (18) years or more.
No. It specifically allows contracting for life, health, and accident insurance.
The insurance company must be duly licensed to do business in the Philippine Islands.
The insurance must be taken on the minor’s own life.
The beneficiary must be either (a) the minor’s estate or (b) the minor’s father, mother, husband, wife, child, brother, or sister.
No. The law limits the beneficiary to the minor’s estate or the enumerated relatives (father, mother, husband, wife, child, brother, or sister).
It states that the minor may contract “notwithstanding such minority,” meaning the minor’s minority is not a bar to the insurance contract if the conditions are met.
The insured (the minor, age 18 or more) may borrow money from the insurance company with the guaranty of the insurance policy.
The loan amount may not exceed the cash surrender value of the policy.
The borrowing must be with the guaranty of the insurance policy.
It is inserted into Section 3 of Act No. 2427 (as amended), added at the end and in a separate paragraph, titled by the provision quoted in the Act.
The minor must be at least 18; the insurance company must be duly licensed in the Philippines; the insurance must be on the minor’s own life; and the beneficiary must be the minor’s estate or one of the enumerated relatives.
It takes effect on its approval.
November 13, 1931.