[REPUBLIC ACT NO. 10607] “SECTION 1. This Decree shall be known as ‘The Insurance Code’. “SEC. 2. Whenever used in this Code, the following terms shall have the respective meanings hereinafter set forth or indicated, unless the context otherwise requires: “(a) A contract of insurance is an agreement whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an unknown or contingent event. “A contract of suretyship shall be deemed to be an insurance contract, within the meaning of this Code, only if made by a surety who or which, as such, is doing an insurance business as hereinafter provided. “(b) The term doing an insurance business or transacting an insurance business, within the meaning of this Code, shall include: “(1) Making or proposing to make, as insurer, any insurance contract; “(2) Making or proposing to make, as surety, any contract of suretyship as a vocation and not as merely incidental to any other legitimate business or activity of the surety; “(3) Doing any kind of business, including a reinsurance business, specifically recognized as constituting the doing of an insurance business within the meaning of this Code; “(4) Doing or proposing to do any business in substance equivalent to any of the foregoing in a manner designed to evade the provisions of this Code. “In the application of the provisions of this Code, the fact that no profit is derived from the making of insurance contracts, agreements or transactions or that no separate or direct consideration is received therefor, shall not be deemed conclusive to show that the making thereof does not constitute the doing or transacting of an insurance business. “(c) As used in this Code, the term Commissioner means the Insurance Commissioner. “CHAPTER I “THE CONTRACT OF INSURANCE “TITLE 1 “WHAT MAY BE INSURED “SEC. 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. “The consent of the spouse is not necessary for the validity of an insurance policy taken out by a married person on his or her life or that of his or her children.
[REPUBLIC ACT NO. 10607]SECTION1. This Decree shall beknownas
TheInsurance Code.SEC. 2. Wheneer usedin!his Code"
!he#ollowin$!er%s shall hae !he res&ec!ie %eanin$s hereina#!er
se!#or!h or indica!ed" unless !he con!e'! o!herwise re(uires)*a+ ,
contract of insuranceisana$ree%en! whereb-one under!akes #or a
considera!ion !o inde%ni#- ano!hera$ains! loss" da%a$e or liabili!-
arisin$ #ro% anunknown or con!in$en! een!.,con!rac! o#
sure!-shi& shall be dee%ed !o be aninsurance con!rac!"
wi!hin!he %eanin$o# !his Code"onl- i# %ade b- a sure!- who or
which" as such" is doin$an insurance business as hereina#!er
&roided.*b+ The !er%doing an insurance
businessortransactinganinsurancebusiness" wi!hin!he%eanin$o# !his
Code" shall include)*1+ .akin$ or &ro&osin$ !o %ake" as
insurer" an-insurance con!rac!/*2+ .akin$ or &ro&osin$ !o
%ake" as sure!-"
an-con!rac!o#sure!-shi&asaoca!ionandno!as%erel-inciden!al !o
an- o!her le$i!i%a!e business or ac!ii!- o#!he sure!-/*0+ Doin$ an-
kind o# business" includin$ a reinsurancebusiness" s&eci#icall-
reco$ni1ed as cons!i!u!in$
!hedoin$o#aninsurancebusinesswi!hin!he%eanin$o#!his Code/*2+ Doin$
or &ro&osin$ !o do an- business in subs!ancee(uialen! !o
an- o# !he #ore$oin$ in a %anner desi$ned!o eade !he &roisions
o# !his Code.In!hea&&lica!iono#!he&roisionso#!hisCode"
!he#ac! !ha! no &ro#i! is deried #ro%!he %akin$
o#insurancecon!rac!s" a$ree%en!sor !ransac!ionsor !ha!no
se&ara!e or direc! considera!ion is receied !here#or"shall no!
be dee%ed conclusie !o show !ha! !he %akin$!hereo# does no!
cons!i!u!e !he doin$ or !ransac!in$ o# aninsurance business.*c+ ,s
used in !his Code" !he !er% Commissioner %eans!he Insurance
Commissioner.C3,4TE5 IT3E CONT5,CT O6 INS75,NCETIT8E 1W3,T .,9 :E
INS75EDSEC. 0. ,n-con!in$en! or unknowneen!" whe!her&as!or
#u!ure"which %a-da%ni#-a&ersonhain$ aninsurable in!eres!" or
crea!e a liabili!- a$ains! hi%" %a-be insured a$ains!" sub;ec! !o
!he &roisions o# !hischa&!er.The consen! o# !he s&ouse
is no! necessar-#or !healidi!-o#aninsurance&olic-!akenou!
b-a%arried&erson on his or her li#e or !ha! o# his or her
children.,llri$h!s"!i!le andin!eres!in !he&olic-
o#insurance!aken ou! b- an ori$inal owner on !he li#e or heal!h o#
!he&erson insured shall au!o%a!icall- es! in !he la!!er
u&on!he dea!h o# !he ori$inal owner" unless
o!herwise&roided #or in !he &olic-.SEC. 2.
The&recedin$sec!iondoesno! au!hori1eaninsurance #or or a$ains!
!he drawin$ o# an- lo!!er-" or #orora$ains! an-chanceor!icke!
inalo!!er-drawin$a&ri1e.SEC. . ,n-one e'ce&! a &ublic
ene%- %a- be insured.SEC. ?. 7nless !he &olic- o!herwise
&roides" where a%or!$a$or o# &ro&er!- e##ec!s insurance
in his own na%e&roidin$ !ha! !he loss shall be &a-able !o
!he %or!$a$ee"or assi$ns a&olic-o# insurance !oa%or!$a$ee"
!heinsurance is dee%ed !o be u&on !he in!eres! o# !he%or!$a$or"
whodoes no! cease !obe a &ar!-!o!heori$inal con!rac!" andan-ac!
o#his" &rior!o!heloss"whichwouldo!herwiseaoid!heinsurance" will
hae!he sa%e e##ec!" al!hou$h !he &ro&er!- is in !he hands
o#!he %or!$a$ee" bu! an- ac! which" under !he con!rac! o#insurance"
is !o be &er#or%ed b- !he %or!$a$or" %a- be&er#or%edb-!he
%or!$a$ee!hereinna%ed" wi!h!hesa%e e##ec! as i# i! had been
&er#or%ed b- !he %or!$a$or.SEC. @. I# an insurer assen!s !o !he
!rans#er o# aninsurance #ro% a %or!$a$or !o a %or!$a$ee" and" a!
!he!i%eo# hisassen!" i%&oses#ur!her obli$a!ionson!heassi$nee"
%akin$ a new con!rac! wi!h hi%" !he ac!s o# !he%or!$a$or canno!
a##ec! !he ri$h!s o# said assi$nee.TIT8E 0INS75,:8E INTE5ESTSEC.
1A. Eer- &erson has an insurable in!eres! in !heli#e and
heal!h)*a+ O# hi%sel#" o# his s&ouse and o# his
children/*b+O#an-&ersononwho%hede&endswholl-orin&ar!
#or educa!ionor su&&or!" or inwho%he has a&ecuniar-
in!eres!/*c+O#an- &ersonundera le$alobli$a!ion !o hi%#or!he
&a-%en! o# %one-" or res&ec!in$ &ro&er!- orserices"
o# which dea!h or illness %i$h! dela- or &reen!!he
&er#or%ance/ and*d+ O# an- &erson u&on whose li#e an-
es!a!e or in!eres!es!ed in hi% de&ends.SEC. 11. The insured
shall hae !he ri$h! !o chan$e
!hebene#iciar-hedesi$na!edin!he&olic-" unlesshehase'&ressl-
waied !his ri$h! in said &olic-.No!wi!hs!andin$ !he #ore$oin$"
in !he een! !he insureddoes no! chan$e !he bene#iciar- durin$ his
li#e!i%e" !hedesi$na!ion shall be dee%ed irreocable.SEC. 12. The
in!eres! o# a bene#iciar- in a li#einsurance &olic- shall be
#or#ei!ed when !he bene#iciar-is !he&rinci&al"
acco%&lice" or accessor-inwill#ull-brin$in$ abou! !he dea!h o#
!he insured. In such a case"!he share #or#ei!ed shall &ass on
!o !he o!herbene#iciaries" unless o!herwise dis(uali#ied. In
!heabsence o# o!her bene#iciaries" !he &roceeds shall be
&aidinaccordance wi!h!he &olic-con!rac!. I# !he
&olic-con!rac! is silen!" !he &roceeds shall be &aid !o
!he es!a!eo# !he insured.SEC. 10. Eer-in!eres! in&ro&er!-"
whe!her real or&ersonal" oran-rela!ion!here!o"
orliabili!-inres&ec!!hereo#" o# such na!ure!ha!
acon!e%&la!ed&eril%i$h!direc!l- da%ni#- !he insured" is an
insurable in!eres!.SEC. 12. ,n insurable in!eres! in
&ro&er!- %a- consis!in)*a+ ,n e'is!in$ in!eres!/*b+ ,n
inchoa!e in!eres! #ounded on an e'is!in$ in!eres!/or*c+ ,n
e'&ec!anc-" cou&led wi!h an e'is!in$ in!eres! in!ha! ou! o#
which !he e'&ec!anc- arises.SEC. 1. The %easure o# an insurable
in!eres! in&ro&er!-is !hee'!en! !owhich!heinsured%i$h!
beda%ni#ied b- loss or in;ur- !hereo#.SEC. 1?. No con!rac! or
&olic- o# insurance on &ro&er!-shall be en#orceable
e'ce&! #or !he bene#i! o# so%e&erson hain$ an insurable
in!eres! in !he &ro&er!-insured.SEC. 1@. ,nin!eres!
in&ro&er!-insured%us! e'is!when !he insurance !akes e##ec!"
and when !he lossoccurs" bu! need no! e'is! in !he %ean!i%e/ and
in!eres!in !he li#e or heal!h o# a &erson insured %us! e'is!
when!he insurance !akes e##ec!" bu! need no! e'is! !herea#!er
orwhen !he loss occurs.SEC. 2A. E'ce&! in !he cases
s&eci#ied in !he ne'! #oursec!ions" andin!hecaseso#li#e"
acciden!" andheal!hinsurance" achan$eo# in!eres! inan-&ar! o#
a!hin$insuredunacco%&aniedb-acorres&ondin$chan$eo#in!eres!
in!heinsurance" sus&ends!heinsurance!oane(uialen! e'!en!" un!il
!he in!eres! in !he !hin$ and !hein!eres! in !he insurance are
es!ed in !he sa%e &erson.SEC. 21. , chan$e o# in!eres! in a
!hin$ insured" a#!er!he occurrence o# an in;ur- which resul!s in a
loss" doesno!a##ec!!heri$h!o#!heinsured!oinde%ni!-#or!heloss.SEC.
22. , chan$e o# in!eres! in one or %ore o# seeraldis!inc! !hin$s"
se&ara!el- insured b- one &olic-" does no!aoid !he
insurance as !o !he o!hers.SEC. 20. , chan$e o# in!eres!" b- will
or succession" on!hedea!ho#!heinsured" doesno!
aoidaninsurance/andhis in!eres! in!heinsurance&asses
!o!he&erson!akin$ his in!eres! in !he !hin$ insured.SEC. 22.
,!rans#er o# in!eres! b- one o# seeral&ar!ners" ;oin! owners"
orownersinco%%on" whoare;oin!l- insured" !o !he o!hers" does no!
aoid an insuranceeen !hou$h i! has been a$reed !ha! !he insurance
shallcease u&on an aliena!ion o# !he !hin$ insured.SEC. 2
