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    Concealment

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    Jomer Pascua
    The document discusses the legal concept of concealment in insurance contracts. It defines concealment as the neglect to communicate information that a party knows and ought to communicate. Both parties to an insurance contract have a duty of utmost good faith to disclose all material facts within their knowledge. A concealment, whether intentional or unintentional, entitles the injured party to rescind the contract. An intentional and fraudulent omission of information proving or tending to prove the falsity of a warranty allows the insurer to rescind the contract.

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    Concealment

    Uploaded by

    Jomer Pascua
    74 views2 pages
    The document discusses the legal concept of concealment in insurance contracts. It defines concealment as the neglect to communicate information that a party knows and ought to communicate. Both parties to an insurance contract have a duty of utmost good faith to disclose all material facts within their knowledge. A concealment, whether intentional or unintentional, entitles the injured party to rescind the contract. An intentional and fraudulent omission of information proving or tending to prove the falsity of a warranty allows the insurer to rescind the contract.

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    The document discusses the legal concept of concealment in insurance contracts. It defines concealment as the neglect to communicate information that a party knows and ought to communicate. Both parties to an insurance contract have a duty of utmost good faith to disclose all material facts within their knowledge. A concealment, whether intentional or unintentional, entitles the injured party to rescind the contract. An intentional and fraudulent omission of information proving or tending to prove the falsity of a warranty allows the insurer to rescind the contract.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    74 views2 pages

    Concealment

    Uploaded by

    Jomer Pascua
    The document discusses the legal concept of concealment in insurance contracts. It defines concealment as the neglect to communicate information that a party knows and ought to communicate. Both parties to an insurance contract have a duty of utmost good faith to disclose all material facts within their knowledge. A concealment, whether intentional or unintentional, entitles the injured party to rescind the contract. An intentional and fraudulent omission of information proving or tending to prove the falsity of a warranty allows the insurer to rescind the contract.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CONCEALMENT

    OBJECTIVE: At the end of the presentation the participants will be able to know :

    1. The meaning, concept, salient aspects and legal applicability of concealment.

    2. The principle of good faith;

    3.The effect of non-disclosure;

    4. Who has duty to disclose;

    5. The belief or expectation of third party;

    6. The presumption; concealment which does not vitiate entire contract;

    7. The distinctions on concealment between marine and fire insurance

    CONCEALMENT

    1. The meaning, concept, salient aspects and legal applicability of concealment.


    Section 26. A neglect to communicate that which a party knows and ought to communicate, is
    called a concealment.
    2. The principle of good faith;
    “of the utmost good faith”
    “uberrimae fidei”
    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.

    3.The effect of non-disclosure;

    4. Who has duty to disclose;

    5. The belief or expectation of third party;

    6. The presumption; concealment which does not vitiate entire contract;

    7. The distinctions on concealment between marine and fire insurance

    Section 27. A concealment whether intentional or unintentional entitles the injured party to rescind

    a contract of insurance.

    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.
    Section 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

    www.insurance.gov.ph

    (e) Those which relate to a risk excepted from the policy and which are not otherwise

    material.

    Section 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.

    Section 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.

    Section 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.

    Section 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.

    Section 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.

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