Question & AnswerQ&A (DEPED ORDER NO. 03, S. 2018)
The short title of Act No. 2427 is "The Insurance Act."
Insurance is defined as a contract whereby one undertakes for a consideration to indemnify another against loss, damage, or liability arising from an unknown or contingent event.
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, subject to the provisions of this Act.
No, insurance for or against the drawing of any lottery or any chance or ticket in a lottery drawing a prize is not authorized under this Act.
The person who undertakes to indemnify another is called the insurer, and the person indemnified is called the insured.
Yes, anyone except a public enemy may be insured under this Act.
Insurable interest is a lawful relation to the property or person insured, such that the insured would suffer a loss or damage from the event insured against. It may consist of existing or inchoate interests or expectancies coupled with existing interests.
If the insured has no insurable interest, the insurance contract is void as the sole object of insurance is indemnity of the insured.
Concealment, whether intentional or unintentional, entitles the injured party to rescind the contract of insurance.
A policy must specify the parties between whom the contract is made, amount to be insured, rate of premium, property or life insured, interest of the insured if not the absolute owner, risks insured against, and the period of insurance.
A warranty is a statement or stipulation made by the insured or insurer, express or implied, relating to past, present, or future facts, the breach of which entitles the other party to rescind the contract.
The insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against.
Double insurance exists when the same person is insured by several insurers on the same subject and interest. The insured may claim payment from insurers in any order up to their liability, and insurers must contribute ratably to the loss.
The Insular Treasurer acts as the Insurance Commissioner ex officio.
An insurance company, foreign or domestic, must obtain a certificate of authority from the Insurance Commissioner after meeting qualification requirements and complying with the Act's provisions.
Any person acting as an insurance agent without a certificate of authority shall be fined five hundred pesos, and the Insurance Commissioner shall revoke the certificate upon conviction of any offense connected with insurance business.
Marine insurance is an insurance against risks connected with navigation to which ships, cargo, freightage, profits, or other insurable interest in movable property may be exposed during a certain voyage or fixed period.
An insurer is not liable for any loss happening to the insured thing after an improper deviation, which includes departure from the usual voyage course without justified cause.