Question & AnswerQ&A (Act No. 3870)
The main purpose of Act No. 3870 is to amend Section 3 of Act No. 2427, as amended by Act No. 3696, by inserting a provision that allows minors aged eighteen years or more to contract life, health, and accident insurance on their own lives.
Any minor who is at least eighteen years old may enter into a contract for life, health, and accident insurance, notwithstanding their minority.
Minors aged eighteen or older may contract for life, health, and accident insurance.
The beneficiary appointed must be the minor's estate, or the minor's father, mother, husband, wife, child, brother, or sister.
Yes, the insured minor may borrow money from the insurance company using the insurance policy as guarantee, but the amount cannot exceed the cash surrender value of the policy.
Yes, the insurance must be contracted with any insurance company duly licensed to do business in the Philippine Islands.
No, the minor's minority is not a bar as long as the minor is eighteen years old or older.
The act took effect on the date of its approval, November 13, 1931.
Act No. 3870 amends Section 3 of Act No. 2427, which was previously amended by Act No. 3696.
Allowing minors aged eighteen or more to contract insurance on their own life provides them financial autonomy in securing life, health, and accident insurance and enables them to access benefits such as borrowing against the insurance policy.