[REPUBLIC ACT NO.

10607]
AN ACT STRENGTHENING THE
INSURANCE INDUSTRY,
FURTHER AMENDING
PRESIDENTIAL DECREE NO. 612,
OTHERWISE KNOWN AS THE
INSURANCE CODE, AS
AMENDED BY PRESIDENTIAL
DECREE NOS. 1141, 1280, 1455,
1460, 1814 AND 1981, AND BATAS
PAMBANSA BLG. 874, AND FOR
OTHER PURPOSES
Be it enacted by the Senate and House
of Representatives of the Philippines in
Congress assembled:
SECTION 1. Presidential Decree No.
612, as amended, is hereby further
amended to read as follows:
GENERAL PROVISIONS
SECTION 1. This Decree shall be
known as The Insurance Code.
SEC. 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.
CHAPTER I
THE CONTRACT OF
INSURANCE
TITLE 1
WHAT MAY BE INSURED
SEC. 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.
SEC. 4. The preceding section does
not authorize an insurance for or
against the drawing of any lottery, or
for or against any chance or ticket in a
lottery drawing a prize.
SEC. 5. All kinds of insurance are
subject to the provisions of this chapter
so far as the provisions can apply.
TITLE 2
PARTIES TO THE CONTRACT
SEC. 6. Every corporation,
partnership, or association, duly
authorized to transact insurance
business as elsewhere provided in this
Code, may be an insurer.
SEC. 7. Anyone except a public
enemy may be insured.
SEC. 8. Unless the policy otherwise
provides, where a mortgagor of
property effects insurance in his own
name providing that the loss shall be
payable to the mortgagee, or assigns a
policy of insurance to a mortgagee, the
insurance is deemed to be upon the
interest of the mortgagor, who does not
cease to be a party to the original
contract, and any act of his, prior to the
loss, which would otherwise avoid the
insurance, will have the same effect,
although the property is in the hands of
the mortgagee, but any act which,
under the contract of insurance, is to
be performed by the mortgagor, may
be performed by the mortgagee therein
named, with the same effect as if it had
been performed by the mortgagor.
SEC. 9. If an insurer assents to the
transfer of an insurance from a
mortgagor to a mortgagee, and, at the
time of his assent, imposes further
obligations on the assignee, making a
new contract with him, the acts of the
mortgagor cannot affect the rights of
said assignee.
TITLE 3
INSURABLE INTEREST
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 13. Every interest in property,
whether real or personal, or any
relation thereto, or liability in respect
thereof, of such nature that a
contemplated peril might directly
damnify the insured, is an insurable
interest.
SEC. 14. An insurable interest in
property may consist in:
(a) An existing interest;
(b) An inchoate interest founded on
an existing interest; or
(c) An expectancy, coupled with an
existing interest in that out of which
the expectancy arises.
SEC. 15. A carrier or depository of
any kind has an insurable interest in a
thing held by him as such, to the extent
of his liability but not to exceed the
value thereof.
SEC. 16. A mere contingent or
expectant interest in any thing, not
founded on an actual right to the thing,
nor upon any valid contract for it, is
not insurable.
SEC. 17. The measure of an insurable
interest in property is the extent to
which the insured might be damnified
by loss or injury thereof.
SEC. 18. No contract or policy of
insurance on property shall be
enforceable except for the benefit of
some person having an insurable
interest in the property insured.
SEC. 19. An interest in property
insured must exist when the insurance
takes effect, and when the loss occurs,
but need not exist in the meantime; and
interest in the life or health of a person
insured must exist when the insurance
takes effect, but need not exist
thereafter or when the loss occurs.
SEC. 20. Except in the cases
specified in the next four sections, and
in the cases of life, accident, and health
insurance, a change of interest in any
part of a thing insured unaccompanied
by a corresponding change of interest
in the insurance, suspends the
insurance to an equivalent extent, until
the interest in the thing and the interest
in the insurance are vested in the same
person.
SEC. 21. A change of interest in a
thing insured, after the occurrence of
an injury which results in a loss, does
not affect the right of the insured to
indemnity for the loss.
SEC. 22. A change of interest in one
or more of several distinct things,
separately insured by one policy, does
not avoid the insurance as to the
others.
SEC. 23. A change of interest, by will
or succession, on the death of the
insured, does not avoid an insurance;
and his interest in the insurance passes
to the person taking his interest in the
thing insured.
SEC. 24. A transfer of interest by one
of several partners, joint owners, or
owners in common, who are jointly
insured, to the others, does not avoid
an insurance even though it has been
agreed that the insurance shall cease
upon an alienation of the thing insured.
SEC. 25. Every stipulation in a policy
of insurance for the payment of loss
whether the person insured has or has
not any interest in the property insured,
or that the policy shall be received as
proof of such interest, and every policy
executed by way of gaming or
wagering, is void.
TITLE 4
CONCEALMENT
SEC. 26. A neglect to communicate
that which a party knows and ought to
communicate, is called a concealment.
SEC. 27. A concealment whether
intentional or unintentional entitles the
injured party to rescind a contract of
insurance.
SEC. 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.
SEC. 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.
SEC. 30. Neither party to a contract
of insurance is bound to communicate
information of the matters following,
except in answer to the inquiries of the
other:
(a) Those which the other knows;
(b) Those which, in the exercise of
ordinary care, the other ought to know,
and of which the former has no reason
to suppose him ignorant;
(c) Those of which the other waives
communication;
(d) Those which prove or tend to
prove the existence of a risk excluded
by a warranty, and which are not
otherwise material; and
(e) Those which relate to a risk
excepted from the policy and which
are not otherwise material.
SEC. 31. Materiality is to be
determined not by the event, but solely
by the probable and reasonable
influence of the facts upon the party to
whom the communication is due, in
forming his estimate of the
disadvantages of the proposed
contract, or in making his inquiries.
SEC. 32. Each party to a contract of
insurance is bound to know all the
general causes which are open to his
inquiry, equally with that of the other,
and which may affect the political or
material perils contemplated; and all
general usages of trade.
SEC. 33. The right to information of
material facts may be waived, either by
the terms of insurance or by neglect to
make inquiry as to such facts, where
they are distinctly implied in other
facts of which information is
communicated.
SEC. 34. Information of the nature or
amount of the interest of one insured
need not be communicated unless in
answer to an inquiry, except as
prescribed by Section 51.
SEC. 35. Neither party to a contract
of insurance is bound to communicate,
even upon inquiry, information of his
own judgment upon the matters in
question.
TITLE 5
REPRESENTATION
SEC. 36. A representation may be
oral or written.
SEC. 37. A representation may be
made at the time of, or before, issuance
of the policy.
SEC. 38. The language of a
representation is to be interpreted by
the same rules as the language of
contracts in general.
SEC. 39. A representation as to the
future is to be deemed a promise,
unless it appears that it was merely a
statement of belief or expectation.
SEC. 40. A representation cannot
qualify an express provision in a
contract of insurance, but it may
qualify an implied warranty.
SEC. 41. A representation may be
altered or withdrawn before the
insurance is effected, but not
afterwards.
SEC. 42. A representation must be
presumed to refer to the date on which
the contract goes into effect.
SEC. 43. When a person insured has
no personal knowledge of a fact, he
may nevertheless repeat information
which he has upon the subject, and
which he believes to be true, with the
explanation that he does so on the
information of others; or he may
submit the information, in its whole
extent, to the insurer; and in neither
case is he responsible for its truth,
unless it proceeds from an agent of the
insured, whose duty it is to give the
information.
SEC. 44. A representation is to be
deemed false when the facts fail to
correspond with its assertions or
stipulations.
SEC. 45. If a representation is false in
a material point, whether affirmative
or promissory, the injured party is
entitled to rescind the contract from
the time when the representation
becomes false.
SEC. 46. The materiality of a
representation is determined by the
same rules as the materiality of a
concealment.
SEC. 47. The provisions of this
chapter apply as well to a modification
of a contract of insurance as to its
original formation.
SEC. 48. Whenever a right to rescind
a contract of insurance is given to the
insurer by any provision of this
chapter, such right must be exercised
previous to the commencement of an
action on the contract.
After a policy of life insurance made
payable on the death of the insured
shall have been in force during the
lifetime of the insured for a period of
two (2) years from the date of its issue
or of its last reinstatement, the insurer
cannot prove that the policy is void ab
initio or is rescindable by reason of the
fraudulent concealment or
misrepresentation of the insured or his
agent.


TITLE 6
THE POLICY
SEC. 49. The written instrument in
which a contract of insurance is set
forth, is called a policy of insurance.
SEC. 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.
SEC. 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.
SEC. 52. Cover notes may be issued
to bind insurance temporarily pending
the issuance of the policy. Within sixty
(60) days after issue of a cover note, a
policy shall be issued in lieu thereof,
including within its terms the identical
insurance bound under the cover note
and the premium therefor.
Cover notes may be extended or
renewed beyond such sixty (60) days
with the written approval of the
Commissioner if he determines that
such extension is not contrary to and is
not for the purpose of violating any
provisions of this Code. The
Commissioner may promulgate rules
and regulations governing such
extensions for the purpose of
preventing such violations and may by
such rules and regulations dispense
with the requirement of written
approval by him in the case of
extension in compliance with such
rules and regulations.
SEC. 53. The insurance proceeds
shall be applied exclusively to the
proper interest of the person in whose
name or for whose benefit it is made
unless otherwise specified in the
policy.
SEC. 54. When an insurance contract
is executed with an agent or trustee as
the insured, the fact that his principal
or beneficiary is the real party in
interest may be indicated by describing
the insured as agent or trustee, or by
other general words in the policy.
SEC. 55. To render an insurance
effected by one partner or part-owner,
applicable to the interest of his co-
partners or other part-owners, it is
necessary that the terms of the policy
should be such as are applicable to the
joint or common interest.
SEC. 56. When the description of the
insured in a policy is so general that it
may comprehend any person or any
class of persons, only he who can
show that it was intended to include
him, can claim the benefit of the
policy.
SEC. 57. A policy may be so framed
that it will inure to the benefit of
whomsoever, during the continuance
of the risk, may become the owner of
the interest insured.
SEC. 58. The mere transfer of a thing
insured does not transfer the policy,
but suspends it until the same person
becomes the owner of both the policy
and the thing insured.
SEC. 59. A policy is either open,
valued or running.
SEC. 60. An open policy is one in
which the value of the thing insured is
not agreed upon, and the amount of the
insurance merely represents the
insurers maximum liability. The value
of such thing insured shall be
ascertained at the time of the loss.
SEC. 61. A valued policy is one
which expresses on its face an
agreement that the thing insured shall
be valued at a specific sum.
SEC. 62. A running policy is one
which contemplates successive
insurances, and which provides that
the object of the policy may be from
time to time defined, especially as to
the subjects of insurance, by additional
statements or indorsements.
SEC. 63. A condition, stipulation, or
agreement in any policy of insurance,
limiting the time for commencing an
action thereunder to a period of less
than one (1) year from the time when
the cause of action accrues, is void.
SEC. 64. No policy of insurance other
than life shall be cancelled by the
insurer except upon prior notice
thereof to the insured, and no notice of
cancellation shall be effective unless it
is based on the occurrence, after the
effective date of the policy, of one or
more of the following:
(a) Nonpayment of premium;
(b) Conviction of a crime arising out
of acts increasing the hazard insured
against;
(c) Discovery of fraud or material
misrepresentation;
(d) Discovery of willful or reckless
acts or omissions increasing the hazard
insured against;
(e) Physical changes in the property
insured which result in the property
becoming uninsurable;
(f) Discovery of other insurance
coverage that makes the total insurance
in excess of the value of the property
insured; or
(g) A determination by the
Commissioner that the continuation of
the policy would violate or would
place the insurer in violation of this
Code.
SEC. 65. All notices of cancellation
mentioned in the preceding section
shall be in writing, mailed or delivered
to the named insured at the address
shown in the policy, or to his broker
provided the broker is authorized in
writing by the policy owner to receive
the notice of cancellation on his behalf,
and shall state:
(a) Which of the grounds set forth in
Section 64 is relied upon; and
(b) That, upon written request of the
named insured, the insurer will furnish
the facts on which the cancellation is
based.
SEC. 66. In case of insurance other
than life, unless the insurer at least
forty-five (45) days in advance of the
end of the policy period mails or
delivers to the named insured at the
address shown in the policy notice of
its intention not to renew the policy or
to condition its renewal upon reduction
of limits or elimination of coverages,
the named insured shall be entitled to
renew the policy upon payment of the
premium due on the effective date of
the renewal. Any policy written for a
term of less than one (1) year shall be
considered as if written for a term of
one (1) year. Any policy written for a
term longer than one (1) year or any
policy with no fixed expiration date
shall be considered as if written for
successive policy periods or terms of
one (1) year.
TITLE 7
WARRANTIES
SEC. 67. A warranty is either
expressed or implied.
SEC. 68. A warranty may relate to the
past, the present, the future, or to any
or all of these.
SEC. 69. No particular form of words
is necessary to create a warranty.
SEC. 70. Without prejudice to
Section 51, every express warranty,
made at or before the execution of a
policy, must be contained in the policy
itself, or in another instrument signed
by the insured and referred to in the
policy as making a part of it.
SEC. 71. A statement in a policy, of a
matter relating to the person or thing
insured, or to the risk, as fact, is an
express warranty thereof.
SEC. 72. A statement in a policy,
which imparts that it is intended to do
or not to do a thing which materially
affects the risk, is a warranty that such
act or omission shall take place.
SEC. 73. When, before the time
arrives for the performance of a
warranty relating to the future, a loss
insured against happens, or
performance becomes unlawful at the
place of the contract, or impossible,
the omission to fulfill the warranty
does not avoid the policy.
SEC. 74. The violation of a material
warranty, or other material provision
of a policy, on the part of either party
thereto, entitles the other to rescind.
SEC. 75. A policy may declare that a
violation of specified provisions
thereof shall avoid it, otherwise the
breach of an immaterial provision does
not avoid the policy.
SEC. 76. A breach of warranty
without fraud merely exonerates an
insurer from the time that it occurs, or
where it is broken in its inception,
prevents the policy from attaching to
the risk.
TITLE 8
PREMIUM
SEC. 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.
SEC. 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.
SEC. 79. An acknowledgment in a
policy or contract of insurance or the
receipt of premium is conclusive
evidence of its payment, so far as to
make the policy binding,
notwithstanding any stipulation therein
that it shall not be binding until the
premium is actually paid.
SEC. 80. A person insured is entitled
to a return of premium, as follows:
(a) To the whole premium if no part
of his interest in the thing insured be
exposed to any of the perils insured
against;
(b) Where the insurance is made for a
definite period of time and the insured
surrenders his policy, to such portion
of the premium as corresponds with
the unexpired time, at a pro rata rate,
unless a short period rate has been
agreed upon and appears on the face of
the policy, after deducting from the
whole premium any claim for loss or
damage under the policy which has
previously accrued: Provided, That no
holder of a life insurance policy may
avail himself of the privileges of this
paragraph without sufficient cause as
otherwise provided by law.
SEC. 81. If a peril insured against has
existed, and the insurer has been liable
for any period, however short, the
insured is not entitled to return of
premiums, so far as that particular risk
is concerned.
SEC. 82. A person insured is entitled
to a return of the premium when the
contract is voidable, and subsequently
annulled under the provisions of the
Civil Code; or on account of the fraud
or misrepresentation of the insurer, or
of his agent, or on account of facts, or
the existence of which the insured was
ignorant of without his fault; or when
by any default of the insured other than
actual fraud, the insurer never incurred
any liability under the policy.
A person insured is not entitled to a
return of premium if the policy is
annulled, rescinded or if a claim is
denied by reason of fraud.
SEC. 83. In case of an over insurance
by several insurers other than life, the
insured is entitled to a ratable return of
the premium, proportioned to the
amount by which the aggregate sum
insured in all the policies exceeds the
insurable value of the thing at risk.
SEC. 84. An insurer may contract and
accept payments, in addition to regular
premium, for the purpose of paying
future premiums on the policy or to
increase the benefits thereof.
TITLE 9
LOSS
SEC. 85. An agreement not to
transfer the claim of the insured
against the insurer after the loss has
happened, is void if made before the
loss except as otherwise provided in
the case of life insurance.
SEC. 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.
SEC. 87. An insurer is liable where
the thing insured is rescued from a
peril insured against that would
otherwise have caused a loss, if, in the
course of such rescue, the thing is
exposed to a peril not insured against,
which permanently deprives the
insured of its possession, in whole or
in part; or where a loss is caused by
efforts to rescue the thing insured from
a peril insured against.
SEC. 88. Where a peril is especially
excepted in a contract of insurance, a
loss, which would not have occurred
but for such peril, is thereby excepted
although the immediate cause of the
loss was a peril which was not
excepted.
SEC. 89. An insurer is not liable for a
loss caused by the willful act or
through the connivance of the insured;
but he is not exonerated by the
negligence of the insured, or of the
insurance agents or others.
TITLE 10
NOTICE OF LOSS
SEC. 90. In case of loss upon an
insurance against fire, an insurer is
exonerated, if written notice thereof be
not given to him by an insured, or
some person entitled to the benefit of
the insurance, without unnecessary
delay. For other non-life insurance, the
Commissioner may specify the period
for the submission of the notice of
loss.
SEC. 91. When a preliminary proof
of loss is required by a policy, the
insured is not bound to give such proof
as would be necessary in a court of
justice; but it is sufficient for him to
give the best evidence which he has in
his power at the time.
SEC. 92. All defects in a notice of
loss, or in preliminary proof thereof,
which the insured might remedy, and
which the insurer omits to specify to
him, without unnecessary delay, as
grounds of objection, are waived.
SEC. 93. Delay in the presentation to
an insurer of notice or proof of loss is
waived if caused by any act of him, or
if he omits to take objection promptly
and specifically upon that ground.
SEC. 94. If the policy requires, by
way of preliminary proof of loss, the
certificate or testimony of a person
other than the insured, it is sufficient
for the insured to use reasonable
diligence to procure it, and in case of
the refusal of such person to give it,
then to furnish reasonable evidence to
the insurer that such refusal was not
induced by any just grounds of
disbelief in the facts necessary to be
certified or testified.
TITLE 11
DOUBLE INSURANCE
SEC. 95. A double insurance exists
where the same person is insured by
several insurers separately in respect to
the same subject and interest.
SEC. 96. Where the insured in a
policy other than life is over insured by
double insurance:
(a) The insured, unless the policy
otherwise provides, may claim
payment from the insurers in such
order as he may select, up to the
amount for which the insurers are
severally liable under their respective
contracts;
(b) Where the policy under which the
insured claims is a valued policy, any
sum received by him under any other
policy shall be deducted from the
value of the policy without regard to
the actual value of the subject matter
insured;
(c) Where the policy under which the
insured claims is an unvalued policy,
any sum received by him under any
policy shall be deducted against the
full insurable value, for any sum
received by him under any policy;
(d) Where the insured receives any
sum in excess of the valuation in the
case of valued policies, or of the
insurable value in the case of unvalued
policies, he must hold such sum in
trust for the insurers, according to their
right of contribution among
themselves;
(e) Each insurer is bound, as between
himself and the other insurers, to
contribute ratably to the loss in
proportion to the amount for which he
is liable under his contract.
TITLE 12
REINSURANCE
SEC. 97. A contract of reinsurance is
one by which an insurer procures a
third person to insure him against loss
or liability by reason of such original
insurance.
SEC. 98. Where an insurer obtains
reinsurance, except under automatic
reinsurance treaties, he must
communicate all the representations of
the original insured, and also all the
knowledge and information he
possesses, whether previously or
subsequently acquired, which are
material to the risk.
SEC. 99. A reinsurance is presumed
to be a contract of indemnity against
liability, and not merely against
damage.
SEC. 100. The original insured has no
interest in a contract of reinsurance.