"Section 49.

The written instrument in which a contract of insurance is set forth, is called a

policy of insurance.

"Section 50. The policy shall be in printed form which may contain blank spaces; and any
word, phrase, clause, mark, sign, symbol, signature, number, or word necessary to complete
the contract of insurance shall be written on the blank spaces provided therein.

"Any rider, clause, warranty or endorsement purporting to be part of the contract of

insurance and which is pasted or attached to said policy is not binding on the insured, unless
the descriptive title or name of the rider, clause, warranty or endorsement is also mentioned
and written on the blank spaces provided in the policy.

"Unless applied for by the insured or owner, any rider, clause, warranty or endorsement
issued after the original policy shall be countersigned by the insured or owner, which
countersignature shall be taken as his agreement to the contents of such rider, clause,
warranty or endorsement.

"Notwithstanding the foregoing, the policy may be in electronic form subject to the
pertinent provisions of Republic Act No. 8792, otherwise known as the ‘Electronic
Commerce Act’ and to such rules and regulations as may be prescribed by the Commissioner.

"Section 51. A policy of insurance must specify:

"(a) The parties between whom the contract is made;

"(b) The amount to be insured except in the cases of open or running policies;

"(c) The premium, or if the insurance is of a character where the exact premium is only
determinable upon the termination of the contract, a statement of the basis and rates upon
which the final premium is to be determined;

"(d) The property or life insured;

"(e) The interest of the insured in property insured, if he is not the absolute owner thereof;

"(f) The risks insured against; and

"(g) The period during which the insurance is to continue.

"Section 77. An insurer is entitled to payment of the premium as soon as the thing insured is
exposed to the peril insured against. Notwithstanding any agreement to the contrary, no
policy or contract of insurance issued by an insurance company is valid and binding unless
and until the premium thereof has been paid, except in the case of a life or an industrial life
policy whenever the grace period provision applies, or whenever under the broker and
agency agreements with duly licensed intermediaries, a ninety (90)-day credit extension is
given. No credit extension to a duly licensed intermediary should exceed ninety (90) days
from date of issuance of the policy.

"Section 78. Employees of the Republic of the Philippines, including its political subdivisions
and instrumentalities, and government-owned or -controlled corporations, may pay their
insurance premiums and loan obligations through salary deduction: Provided, That the
treasurer, cashier, paymaster or official of the entity employing the government employee is
authorized, notwithstanding the provisions of any existing law, rules and regulations to the
contrary, to make deductions from the salary, wage or income of the latter pursuant to the
agreement between the insurer and the government employee and to remit such
deductions to the insurer concerned, and collect such reasonable fee for its services.

"Section 86. Unless otherwise provided by the policy, an insurer is liable for a loss of which a
peril insured against was the proximate cause, although a peril not contemplated by the
contract may have been a remote cause of the loss; but he is not liable for a loss of which
the peril insured against was only a remote cause.

"Section 95. A double insurance exists where the same person is insured by several insurers
separately in respect to the same subject and interest.

"Section 101. Marine Insurance includes:

"(a) Insurance against loss of or damage to:

"(1) Vessels, craft, aircraft, vehicles, goods, freights, cargoes, merchandise, effects,
disbursements, profits, moneys, securities, choses in action, instruments of debts, valuable
papers, bottomry, and respondentia interests and all other kinds of property and interests
therein, in respect to, appertaining to or in connection with any and all risks or perils of
navigation, transit or transportation, or while being assembled, packed, crated, baled,
compressed or similarly prepared for shipment or while awaiting shipment, or during any
delays, storage, transhipment, or reshipment incident thereto, including war risks, marine
builder’s risks, and all personal property floater risks;

"(2) Person or property in connection with or appertaining to a marine, inland marine,

transit or transportation insurance, including liability for loss of or damage arising out of or
in connection with the construction, repair, operation, maintenance or use of the subject
matter of such insurance (but not including life insurance or surety bonds nor insurance
against loss by reason of bodily injury to any person arising out of ownership, maintenance,
or use of automobiles);

"(3) Precious stones, jewels, jewelry, precious metals, whether in course of transportation or
otherwise; and

"(4) Bridges, tunnels and other instrumentalities of transportation and communication

(excluding buildings, their furniture and furnishings, fixed contents and supplies held in
storage); piers, wharves, docks and slips, and other aids to navigation and transportation,
including dry docks and marine railways, dams and appurtenant facilities for the control of
waterways.