INSURANCE CONTRACT

ARTICLE 874. INSURANCE CONTRACT. By the insurance contract, the insurer is obliged to
compensate for damage or pay a sum of money when the eventuality foreseen in the contract
occurs, and the insured or policyholder is obliged to pay the corresponding premium.

ARTICLE 875. DEFINITIONS. For the purposes of this Code it is considered:

1st. Insurer: the commercial company legally authorized to operate insurance, which assumes the
risks specified in the insurance contract.

2nd. Applicant: the person who contracts the insurance, on his or her own account or on behalf of
a specific or determinable third party and who transfers the risks to the insurer.

3rd. Insured: the person interested in the transfer of risks.

4th. Beneficiary: the person who must receive the insurance proceeds in the event of an accident.

5th. Premium: the remuneration or price of the insurance.

6th. Risk: the eventuality of any fortuitous event that may cause the loss foreseen in the policy.

7th. Loss: the occurrence of the insured risk.

The same person can meet the qualifications of applicant, insured and beneficiary.
Certain events, or those that are physically impossible, do not constitute a risk and cannot be the
subject of the insurance contract, except for death.

ARTICLE 876. IMPERATIVE NATURE. All the provisions of this chapter will be mandatory in favor of
the insured, unless they expressly allow an agreement to the contrary.

ARTICLE 877. INSURANCE CARRIER. Only commercial companies that have obtained the respective
authorization may act as insurers.

Whoever, without being duly authorized, actually assumes the role of insurer, must return the
premiums they have received and compensate for the damages caused to their counterparty.

Insurance element

insurer and insured

Characteristics

5. • Random: it is random because it refers to compensation for loss or damage caused by an

uncertain event or fact.

6. • Bilateral: Because it gives rise to reciprocal rights and obligations between the insurer and the
insured.

7. • Consensual: It is consensual because it is perfected by the mere consent of the parties and
produces its effects since the agreement has been made.

8. • In writing: By virtue of which it is perfected through the written acceptance of the insurer.

9. • Onerous: Because its purpose is for both contracting parties to record one for the benefit of
the other.

10. • Successive tract: Because the obligations borne by the contracting parties are not exhausted
when the contract is signed but rather they have only just begun, since before the incident occurs
the obligations are borne by them and after present where those of the insurer arise.

11. • Adhesion: They are considered adhesion because the offer is addressed to an undetermined
person, has a general and permanent nature and is frequently presented in print. The offer
generally emanates from a natural or legal person that enjoys a de facto or legal monopoly.

Policy • It constitutes an evidentiary document of a commercial nature for the proof of the
insurance contract, simply and plainly it is the document that contains the mention of the parties
and their fundamental rights and obligations.

24. Risk • It is the probability, proximity of damage. There is also a random element in the
insurance contract, which obliges the insured, until it occurs, to pay the premium, and the insurer
to repair the damages.

25. Premium It is the amount of money paid at once or periodically by the insured to the insurer,
as consideration for the risk that constitutes the object of the insurance.

26. Compensation Economic compensation for the damage or harm caused, from the point of
view of the guilty party, and that which has been perceived by the victim.

"Insurance is a random contract, by which one of the people (the insurer) undertakes to
compensate the risks that another (the insured) suffers, or to pay a certain sum to the latter or to a
third party (the beneficiary) in the event of an occurrence. or the event in question does not occur,
in exchange for the payment of a premium in any case
 AGRICULTURAL AND LIVESTOCK
INSURANCE
ARTICLE 979. NOTICE OF LOSS. In agricultural and livestock insurance, notification of the incident
must be given precisely within twenty-four hours following its occurrence.

ARTICLE 980. LACK OF DILIGENCE. The insurer will be released from its obligations if the incident is
due to failure to take ordinary care of the plantations or livestock.

ARTICLE 981. COVERAGE. Agricultural insurance can cover the expected benefits of crops already
grown or to be grown, agricultural products already harvested, or both at the same time.

In the first case, the policy must contain an indication of the area cultivated or to be cultivated, the
product to be planted and the approximate harvest date.

In the second case, the place where the products are stored.

ARTICLE 982. PARTIAL DESTRUCTION. In the event of partial destruction of agricultural products,
the assessment of the damage will be postponed, at the request of either party, until harvest.

ARTICLE 983. DEATH OF CATTLE. The insurer will be liable for the death of the livestock, even if it
occurs within the month following the termination date of the annual insurance, provided it is
caused by a disease contracted at the time the contract was in effect.

ARTICLE 984. DISPOSAL OF LIVESTOCK. If the insured sells one or more heads of livestock, the
purchaser will not enjoy the benefits of the insurance, which will only be transmitted when the
entire herd is sold, with prior notice to and acceptance of the insurer.

ARTICLE 985. VALUE OF DAMAGE. In insurance against illness or death of livestock, the value of
the interest in the event of death will be considered to be the value of the sale at the time prior to
the incident; in case of illness, that of the damage that is directly done.

Main effects of agricultural and livestock insurance Unlike what happens in other damage
insurance, given the nature of the insured objects, it is established that notification of the incident
must be given within twenty-four hours following its occurrence. The problem would arise if the
event occurs in places where due to lack of communication it would be impossible to comply
within such a peremptory time, even at the risk that this forecast has its explanation because
agricultural losses must be verified immediately, I believe that it should not have been left so blunt.
compliance with the obligation to communicate the risk, or extend it to three days as occurs in
Argentine law.

3.10. Particularities of agricultural and livestock insurance Agricultural insurance is insurance that
provides protection and security to investments in agriculture and livestock. In the agricultural
sector, crops are insured against climatic factors (wind, floods, droughts, hail, frost, etc.), and in
livestock insurance, cattle and pigs are insured against the risk of death that may be caused by
accident. illness or forced sacrifice. In the livestock sector, bovine, equine and swine species can be
insured against the risk of death as a result of an accident or certain diseases.

ARTICLE 990. CAR INSURANCE. Through this automobile insurance, the insurer will compensate for
 AUTO INSURANCE

damage caused to the vehicle or its loss; the damages and losses caused to the property of others
and to third parties, due to the use thereof, or any other risk covered by the policy.

ARTICLE 991. DAMAGE TO THE VEHICLE. Unless otherwise agreed, the damage insurance for the
insured automobile includes damage caused by accidental overturns, collisions, fire, self-ignition,
lightning and total theft of the vehicle itself.

ARTICLE 992. DAMAGE TO OTHERS' PROPERTY. Automobile insurance for damage to other
people's property includes the civil liability of the insured, caused by the use of the automobile,
causing material damage to vehicles or other property.

ARTICLE 993. HITTING OF PEOPLE. Automobile insurance for personal injury includes civil liability
arising from damages to third parties due to the use of the insured automobile.

ARTICLE 994. RISK NOT COVERED. In no case will damage to the property of the insured, their
family members or people in their custody be covered, with the exception of the insured
automobile itself.

ARTICLE 995. EXCLUDED RISKS. Unless otherwise agreed, the risks included in the following
assumptions are excluded.

1st. Those that occur when the vehicle is outside the limits of the Republic of Guatemala.

2nd. Damage to the person of the insured, their companions, or the professional driver.

3rd. The breakage of glass or parts of the automobile mechanism, due to improper use, overload or
effort above the capacity of the vehicle.

4th. Those caused by serious violations of the Traffic Regulations, provided that the violation
directly influences the accident that causes the damage.

5th. Those caused by legally proven intoxication of the person driving the insured automobile or by
a person lacking a driving license.

6th. Damage to special equipment.

7th. Loss of profits or income.

8th. Extraordinary risks, such as tremors, earthquakes, volcanic eruptions, hurricanes, war.

9th. Those caused by individuals directly in races or competitions.

10. Those caused by using the vehicle for instructional or teaching purposes

Automobiles are classified according to their type, in order to apply the various rates contemplated
by this insurance. Grouping like this:
Vehicles
Motorcycles, motorbikes, scooters
Transportation of people
Freight transport
Farm Equipment
Trailers
Pulled trailers
Emergency services

The goods that can be covered by insurance are:

- The vehicle itself.
- Other vehicles
- Goods found in the vehicle
- Fixed or mobile assets other than the vehicle.

The people who can be covered by this insurance are:

- Owner.
- Driver.
- The passengers.
- People transported in the vehicle
- People transported in another vehicle.