KINDS OF LIFE INSURANCE The insurer in a life insurance contract shall be

Kinds of life insurance the insurer in a life

This preview shows page 6 - 14 out of 24 pages.

KINDS OF LIFE INSURANCE
Image of page 6

Subscribe to view the full document.

The insurer in a life insurance contract shall be liable in case of suicide only when it is committed after the policy has been in force for a period of two (2) years from the date of its issue or of its last reinstatement, unless the policy provides a shorter period. INCONTESTABILITY CLAUSE SEC 183, IC
Image of page 7
A suicide committed in the state of insanity shall be compensable regardless of the date of commission. The rationale being that an insane person cannot possibly contemplate such an elaborate scheme of acquiring insurance with suicide as the ultimate objective. Suicide can be made an excepted or insured peril (the suicide clause). SUICIDE COMMITTED IN THE STATE OF INSANITY SEC 183, IC
Image of page 8

Subscribe to view the full document.

An insurance company may be held liable in case of a suicide only after the passage of a certain period of time, in our case, two years after its issue under the Amended Insurance Code. Hence, if an insured commits suicide within a period of two years after the issuance of the policy, the insurer shall not be liable. The two-year period is also called the suicide- exemption period or suicide-exclusion period . The insurance company may agree to shorten the period (i.e., one year) but it cannot be made longer. SUICIDE-EXEMPTION PERIOD
Image of page 9
A policy of insurance upon life or health may pass by transfer, will or succession to any person, whether he has an insurable interest or not, and such person may recover upon it whatever the insured might have recovered. (Sec 184, IC) Notice to an insurer of a transfer or bequest thereof is not necessary to preserve the validity of a policy of insurance upon life or health, unless thereby expressly required. (Sec. 185, IC) LIFE INSURANCE IS TRANSFERRABLE
Image of page 10

Subscribe to view the full document.

Unless the interest of a person insured is susceptible of exact pecuniary measurement, the measure of indemnity under a policy of insurance upon life or health is the sum fixed in the policy . (Sec 186, IC) MEASURE OF LIFE INSURANCE
Image of page 11
In addition to those enumerated in Sec 51, Sec 233 enumerates what the policy shall contain in substance: Grace period of month for the payment of premium Incontestability clause The policy constitutes the entire contract Provision paying the proceeds based on correct age Options in case of default of payment of premium after 3 annual full premium payments Cash surrender value figures and options Reinstatement provision within 3 years of default CONTENTS OF LIFE/ENDOWMENT POLICY SEC 233, IC
Image of page 12

Subscribe to view the full document.

A 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 five hundred times that of the current statutory minimum daily wage in the City of Manila.
Image of page 13
Image of page 14
  • Fall '18

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes