Insurance

Law
Life
Insurance
Accident Death Benefit Clause
Transfer of Policy
Exempt from Execution
Insolvency
Life Insurance Equation

Laika P. Corral
LAW 3D
CONTENTS
Accidental Death
1 Benefit Clause 4 Insolvency

2 Transfer of 5 Life Insurance

Policy Equation

Exempt from
3 Execution
Accidental Death Benefit Clause

An insurance policy may

provide for an accidental
benefit clause which gives
the beneficiaries additional
benefits if the death of the
insured is through
accidental means.
PURPOSE

Accidental Death benefits are designed to

provide for additional protection against
unfortunate accidents resulting to death.

bodily injury effected solely

through external and violent means
sustained in an accident and
independently of all other causes.
ACCIDENTAL DEATH

Incorporates what happens without

intention or design, and which is
unexpected, unusual, and unforeseen.

It provides that the mechanism or action

causing the injury or death is accidental
producing effects, which are not their
natural and probable consequence.
RULES POLICY STRUCTURE

GOVERNING
There are two main components
in accidental death coverage:

THE POLICY
the insuring clause and the
exclusionary clauses.

BURDEN OF PROOF
The burden to prove that death was
accidental rests upon the claimant, it
is up to the insurer to prove exclusions
that bar coverage.

INTERPRETATION
One must interpret the policy in its
more ordinary, popular sense.
Undefined terms will be construed
to the benefit of the insured,
especially exclusionary provisions.
Examples of
Accidents that may A gun which A hunter who
be covered by the discharges while shoots at his
Accidental Death being cleaned prey and hits a
Benefit Clause and kills a person instead
bystander.

An athlete in a Traffic accidents,

competitive game Exposure, falls,
involving physical heavy equipment
effort who accidents,
collides with an drowning
opponent and
fatally injures him
as a result
 COMMON EXCLUSIONS

Any hazardous hobbies

Death from illness or Acts that the insured
of war, regularly engages
Death by
death caused
Suicide
by illegal
natural causes activities
INTENTIONAL ACTS

Implies the exercise of reasoning

faculties, consciousness and
volition. It is the intention of the person
inflicting the injury that is controlling.

If the injuries suffered by the insured

clearly resulted from the intentional
act of the third person, the insurer is
relieved from liability.
Biagtan vs. Insular Life
Nine wounds were inflicted upon
the deceased, all by means of
thrusts with sharp-pointed
instruments wielded by the
robbers. Whether the robbers had
the intent to kill or merely to scare
the victim it cannot be denied that
the act itself of inflicting the
injuries was intentional.
Cadasoc vs. CA
It cannot be said that the killing
was intentional for there is the
possibility that the malefactor had
fired the shot merely to scare
away the people around for his
own protection and not
necessarily to kill or hit the victim.
SEC. 184: A policy of insurance upon life or
TRANSFER
health may pass by transfer, will or succession OF POLICY
to any person, whether he has an insurable
interest or not, and such person may recover
upon it whatever the insured might have
recovered.

SEC. 185: Notice to an insurer or

bequest thereof is not necessary to
preserve the validity of a policy of
insurance upon life or health, unless
thereby expressly required.
EXEMPT FROM EXECUTION

Rule 39 Sec. 13(k) Rules of

Court

Except as otherwise expressly provided by

law, the following property, and no other,
shall be exempt from execution xxx

(k) Monies, benefits, privileges, or

annuities accruing or in any manner
growing out of any life insurance xxx
 The amount received by the beneficiaries
cannot be levied. The exemption there
established applies to:

Ordinary Life Insurance

Policies intended primarily to

indemnify for risks arising from
accident

Policies that insure against loss of

life due, either to accidental
causes, or to the wilful and
criminal act of another, which, as
such is not strictly accidental in
nature.
 INSOLVENCY

Act 956 Sec 32 (Insolvency

Law)
The properties that are exempt
from execution shall not pass to
the assignees.
R.A. 10142 Sec. 113 (An Act
Providing for the Rehabilitation
or Liquidation of Financially
Distressed Enterprise and
Individuals)

Legal Title of properties exempt from

execution does not pass to the
liquidator.
 The destruction of the
insurance is not only highly
prejudicial to the insured and
those dependent upon him,
but is inimical to the interests
of society. Insurance is a
species of property that
should be conserved
and not dissipated.
Rationale
 Sun Life Assurance Company
of Canada vs. Frank Ingersoll
An assignee in the bankruptcy acquires no
beneficial interest in a policy of insurance on
the bankrupt’s life, payable to himself or to his
legal representative, if it has no cash surrender
value at the time of the commencement of the
proceedings in bankruptcy; and if the bankrupt
dies thereafter, the proceeds of the policy go
to the bankrupt’s estate not to the estate in
bankruptcy.
 Group
Common Presump-
Definition
Example tion Life
Insurance
The employer is the
A policyholder
A group of agent of the insurer
may be an in performing the
individuals are
employer who duties of
covered by
obtains a group administering group
one master insurance policies.
insurance
contract.
coverage over
-Elfstrom vs. New
the lives of his York Life Insurance
employees. Company
 Form of life insurance under
which the premiums are payable
either monthly or oftener, if the
face amount of insurance
provided in any policy is not more
than five hundred times that of
the current statutory minimum
daily wage in the City of Manila,
and if the words industrial policy
are printed upon the policy as
part of the descriptive matter.
Industrial Life Insurance
LIFE INSURANCE The incoming premiums and
EQUATION investment earnings must be

1
equal to the outgoing
payment of losses, expenses
and profits.

Insurers collect somewhat more

than they need to pay the expected
2 claims. They add “loading” to the
mortality cost in order to have
enough to pay the opeating
expenses of the company

Funds held for reserves or

3 surplus are invested and the
investment income is used to
reduce the cost of insurance.
THANK YOU!