Insurance Law

Question 1

Contract of Insurance

Answer 1

Agreement whereby one undertakes for a consideration to indemnify another against loss, damage, liability arising from an unknown contingent event

Question 2

Suretyship

Answer 2

Contract where a person binds himself solidary to the creditor to fulfill the obligation of the debtor in case the latter should fail to do so

Question 3

Characteristics of Insurance

Answer 3

1. Risk-distributing device
2. Contract of Adhesion
3. Aleatory
4. Contract of Indemnity
5. Contract of Utmost Good Faith
6. Personal Contract

Question 4

Elements of an Insurance Contract

Answer 4

1. Has insurable interest
2. Insured is subject to a risk of loss
3. Insurer assumes the risk
4. Such assumption of risk is part of a general scheme to distribute actual losses among a large group of persons bearing a similar risk
5. The insured pays a premium

Question 5

Classes of Insurance

Answer 5

1. Individual Life Insurance
2. Group Life Insurance
3. Industrial Life Insurance
   4.Marine Insurance
4. Fire Insurance
5. Casualty
6. Contract of Suretyship
7. Microinsurance
8. Variable Insurance

Question 6

Individual Life Insurance

Answer 6

insurance on human lives and insurance appertaining thereto or connected therewith

Question 7

Group Life Insurance

Answer 7

Essentially a single insurance contract that provides coverage for many individuals

Question 8

Industrial Life Insurance

Answer 8

Premiums are payable either monthly or oftener if the face amount of the insurance provided in any policy is not more than 500 times that of the current statutory minimum daily wage in the city of Manila

Question 9

Microinsurance

Answer 9

Financial product or service that meets the risk protection needs of the poor

Question 10

Contribution and Benefit of MicroInsurance

Answer 10

Does not exceed 7.5% of the current daily minimum wage rate for nonagricultural workers in Metro Manila
Benefit: Not more than 1000 times of the current daily minimum wage rate

Question 11

Insurable Interest

Answer 11

Interest which the insurer is required to have in the person of the insured

Question 12

Insurable interest in Property

Answer 12

Limited to the actual value of the interest thereon

Question 13

Insurable Interest in Life

Answer 13

Unlimited (save in life insurance effected by a creditor on the life of the debtor)