Insurance Law - Life Insurance

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    2. Life insurance may be defined as insurancepayable on the death of a person, or on his

    surviving a specified period , or otherwisecontingently on the continuance orcessation of life.

    Section 180. Insurance Code

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    3. Life insurance is a contract to make specificpayments to pay to a certain person, the

    beneficiary, upon the death of a personwhose life has been insured.

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    1. Insurer2. Insured

    3. Cestui Que Vie4. Beneficiary5. Assured

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    1. Liability absolutely certain2. Amount of insurance generally without limit

    3. Life policy is a valued policy4. Directly pecuniary loss not required

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    Life Insurance Fire and Marine Insurance

    1. Contract of Investment Contracts of Indemnity

    2. Valued Policy Open or Valued

    3. Transferable even with noinsurable interest

    Must have insurable interest

    4. Consent is not essential to the

    validity of assignment

    Essential

    5. Insurable Interest need not existafter insurance takes effect or when loss occurs

    Must exist not only when theinsurance takes effect but alsowhen loss occurs

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    Life Insurance Fire and Marine Insurance

    6. Insurable Interest need not haveany legal basis

    Must have a legal basis

    7. The contingency is a certain event The contingency may or may notoccur

    8. Payment is certain (will have to bepaid sooner or later)

    Uncertain (the amount insuredmay not have to be paid)

    9. May be terminated only by the

    insured

    Either the Insured or the Insurer

    may cancel10. Loss can seldom be measured

    by cash valueThe reverse is generally true

    11. No obligation to prove actualfinancial loss

    Required to submit proof of actual pecuniary loss

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    Answer:

    It depends on the manner of maturity of the policy.

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    a) If the policy matures by the expiration of terms(maturity other than by death of the insured),payment shall be made immediately upon maturity

    except when the proceeds payable in installmentsor as an annuity in which case the installments orannuities shall be paid as they become due; and

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    b) If the policy matures by the death of the insured,payment should be made within sixty (60) daysfrom the presentation of the claim and filing of

    proof of death.

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    Property exempt from execution. Except asotherwise expressly provided by law, the followingproperty, and no other, shall be exempt from

    execution:------(k) Monies, benefits, privileges, or annunitiesaccruing or in any manner growing out of any lifeinsurance

    Rule 39, Sec. 12 (k), Rules of Court

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    1. When accident insurance regarded as lifeinsurance

    2. Burden of Proof

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    1. Ordinary life policy2. Limited payment life policy

    3. Term insurance policy4. Endowment policy

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    Limited payment life policy is one underthe terms of which the premiums are

    payable only during a limited period of years, usually ten, fifteen, or twenty.

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    Term insurance policy is one which providescoverage only if the insured dies during a

    limited period.

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    Endowment policy is one under the termsof which the insurer binds himself to pay a

    fixed sum to the insured if he survives for aspecified period, or, if he dies within suchperiod, to some other person indicated.

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    1. Life Insurance

    a) Actual Deathb) Living Deathc) Retirement Death

    2. Health, accident, and disability insurance

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    By the aleatory contract of life annuity, the debtorbinds himself to pay an annual pension or incomeduring the life of one or more determinate personsin consideration of a capital consisting of money orother property, whose ownership is transferred tohim at once with the burden of the income.

    Art. 2021, Civil Code

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    The Insurer binds himself to the Insured/Annuitant

    to pay a pension or income

    during the lifetime of the Insured/Annuitant

    upon payment of the Annuitant of a lump sum.

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    The annuity has been called the upside -down application of the life insurance

    principle.

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    Life

    InsurancePayment of Premium;

    Payment of Indemnity

    Upondeath

    Payment tobeneficiary

    starts

    Life Annuity

    Payment of Premium;

    Payment of Annuity

    For as longas the

    Annuitantis alive

    Payment tothe

    Annuitantstops

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    Annuity Contract Life Insurance Policy

    1. Ensures against economic

    problems resulting from a long life

    Ensures against economic

    problems resulting from an earlydeath

    2. Lump sum is paid immediatelyand then annuity payments arereceived by the annuitant for as long

    as he lives

    Payment of annuity and thenbeneficiary is paid the lump sumupon death of the insured

    3. An Investment An Indemnity

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    The insurer in a life insurance contract shall be liablein case of suicide only when it is committed afterthe policy has been in force for a period of two years

    from the date of its issue or of its last reinstatement,unless the policy provides a shorter period;Provided, however, that suicide committed in thestate of insanity shall be compensable regardless of

    the date of commission.Sec. 180 a. Insurance Code.

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    A policy of insurance upon life or health maypass by transfer, will or succession to any

    person, whether he has an insurable interestor not, and such person may recover upon itwhatever the insured might have recovered.

    Section 181. Insurance Code.

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    1. Insurable interest of assignee in lifeinsurance not required

    2. Where assignment used as a cloak to hide anillegal scheme

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    1. Insurable interest of assignee in lifeinsurance not required

    All life insurance policies are declared by law tobe assignable regardless of whether the assigneehas an insurable interest in the life of the insuredor not.

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    2. Where assignment used as a cloak to hide anillegal scheme

    The courts will not permit the process of assignment to be used as a cloak to hide anillegal intent to make contracts on humanlife.

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    1. With waiver of right to change beneficiary2. Without such waiver

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    Notice to an insurer of a transfer or bequestthereof is not necessary to preserve the

    validity of a policy of insurance upon life orhealth, unless thereby expressly required.

    Section 182. Insurance Code.

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    1. Notice not required by policy2. Notice required by policy

    3. Assignment with consent of insurer

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    Unless the interest of a person insured issusceptible of exact pecuniary measurement,

    the measure of indemnity under a policy of Insurance upon life or health is the sum fixedin the policy.

    Section 183. Insurance Code

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    The extent or amount of indemnity payableon the death of the insured under a policy of

    insurance upon life or health is the amountfixed in the policy in effect, life policies arevalued ones.

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