5.

INSURANCE CODE (RA10607)

"Section 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.

"Section 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.

"All rights, title and interest in the policy of insurance taken out by an original owner on the
life or health of the person insured shall automatically vest in the latter upon the death of
the original owner, unless otherwise provided for in the policy.

"Section 6. Every corporation, partnership, or association, duly authorized to transact

insurance business as elsewhere provided in this Code, may be an insurer.

"Section 7. Anyone except a public enemy may be insured.

"Section 10. Every person has an insurable interest in the life and health:
"(a) Of himself, of his spouse and of his children;

"(b) Of any person on whom he depends wholly or in part for education or support, or in
whom he has a pecuniary interest;

"(c) Of any person under a legal obligation to him for the payment of money, or respecting
property or services, of which death or illness might delay or prevent the performance; and

"(d) Of any person upon whose life any estate or interest vested in him depends.

"Section 11. The insured shall have the right to change the beneficiary he designated in the
policy, unless he has expressly waived this right in said policy. Notwithstanding the foregoing,
in the event the insured does not change the beneficiary during his lifetime, the designation
shall be deemed irrevocable.

"Section 12. The interest of a beneficiary in a life insurance policy shall be forfeited when
the beneficiary is the principal, accomplice, or accessory in willfully bringing about the death
of the insured. In such a case, the share forfeited shall pass on to the other beneficiaries,
unless otherwise disqualified. In the absence of other beneficiaries, the proceeds shall be
paid in accordance with the policy contract. If the policy contract is silent, the proceeds shall
be paid to the estate of the insured.

"Section 26. A neglect to communicate that which a party knows and ought to communicate,
is called a concealment.

"Section 27. A concealment whether intentional or unintentional entitles the injured party
to rescind a contract of insurance.

"Section 28. Each party to a contract of insurance must communicate to the other, in good
faith, all facts within his knowledge which are material to the contract and as to which he
makes no warranty, and which the other has not the means of ascertaining.

"Section 29. An intentional and fraudulent omission, on the part of one insured, to
communicate information of matters proving or tending to prove the falsity of a warranty,
entitles the insurer to rescind.