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    Insurance

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    VAT CLIENTS
    This document defines key concepts in insurance law, including the definition of insurance as an agreement to indemnify another against loss or liability from an unknown event. It also defines suretyship, outlines what constitutes doing an insurance business, and describes characteristics of insurance contracts such as being contracts of adhesion. Elements of a valid insurance contract are identified as insurable interest, risk of loss, assumption of risk, loss distribution, and premium payments. The principal purpose of insurance is assumed risk and loss indemnification.

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    Insurance

    Uploaded by

    VAT CLIENTS
    72 views2 pages
    This document defines key concepts in insurance law, including the definition of insurance as an agreement to indemnify another against loss or liability from an unknown event. It also defines suretyship, outlines what constitutes doing an insurance business, and describes characteristics of insurance contracts such as being contracts of adhesion. Elements of a valid insurance contract are identified as insurable interest, risk of loss, assumption of risk, loss distribution, and premium payments. The principal purpose of insurance is assumed risk and loss indemnification.

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    This document defines key concepts in insurance law, including the definition of insurance as an agreement to indemnify another against loss or liability from an unknown event. It also defines suretyship, outlines what constitutes doing an insurance business, and describes characteristics of insurance contracts such as being contracts of adhesion. Elements of a valid insurance contract are identified as insurable interest, risk of loss, assumption of risk, loss distribution, and premium payments. The principal purpose of insurance is assumed risk and loss indemnification.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    72 views2 pages

    Insurance

    Uploaded by

    VAT CLIENTS
    This document defines key concepts in insurance law, including the definition of insurance as an agreement to indemnify another against loss or liability from an unknown event. It also defines suretyship, outlines what constitutes doing an insurance business, and describes characteristics of insurance contracts such as being contracts of adhesion. Elements of a valid insurance contract are identified as insurable interest, risk of loss, assumption of risk, loss distribution, and premium payments. The principal purpose of insurance is assumed risk and loss indemnification.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Insurance

    An agreement whereby one undertakes for consideration to indemnify another against loss, damage or
    liability arising from an unknown or contingent event

    Suretyship

    Aan agreement whereby a party called the surety guarantees the performance by another called the
    principal or obligor of an obligation or undertaking in favor of a third party called the oblige. It shall be
    deemed to be an insurance contract if made by a surety who or which as such is doing an insurance
    business.

    Doing and insurace or transacting an insurance business

    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, not as a mere
    incident to any other legitimate business of a surety
    3. Doing any insurance businesslike reinsurance and similar acts
    4. Doing or proposing to do any business equivalent to the above

    Mutual insurance companies

    An entity owned by the policyholders that caters only to the insurance needs of the same
    policyholders/members is still engaged in insurance business.

    Bancassurance

    The presentation and sale to bank customers by an insurance company of its insurance products within
    the premises of the head office of such bank duly licensed by the BSP or any of its branches.

    Characteristics

    a. Insurance as a risk-distributing device


    b. Contract of adhesion or fine print rule
    c. Aleatory or commutative
    d. Contract of indemnity- applicable only to property insurance, only the actual loss can be
    obtained.
    e. Uberrimae Fidae- contracts of utmost good faith
    f. Personal contract

    Elements of Insurance

    a. Existence of insurable interest


    b. Risk of loss
    c. Assumptions of risk
    d. Scheme to distribute losses
    e. Payment of premiums

    Principal object and Purpose Test - assumption of risk and indemnification of loss
    An HMO who’s paid for by the client a certain some of money in exchange for the hospital, medical and
    professional services rendered by the HMO’s physician or affiliated physician to the HMO is not an
    insurance contract because there is no loss, damage or liability on the part of the insured that will be
    indemnified by the HMO what the member merely availed of is the medical services paid in advance to
    its partner physicians. Indemnity of the member was not the focal point of the agreement but the
    extension of medical services to the member at an affordable cost.

    Insurance risk (actuarial risk) is the risk that the cost of insurance claims might be higher than the
    premiums paid.

    PERFECTION’

    Insurance contracts- consensual contract and is perfected upon meeting of minds; follows the cognition
    theory; delivery of contract is not necessary

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