Every person has an insurable interest unaccompanied by a corresponding change in
in the life and interest in the insurance, suspends the health:chanroblesvirtuallawlibrary insurance to an equivalent extent, until the (a) Of himself, of his spouse and of his interest in the thing and the interest in the children; insurance are vested in the same person. (b) Of any person on whom he depends wholly Sec. 21. A change in interest in a thing insured, or in part for education or support, or in whom after the occurrence of an injury which results he has a pecuniary interest; in a loss, does not affect the right of the insured (c) Of any person under a legal obligation to to indemnity for the loss. him for the payment of money, or respecting Sec. 22. A change of interest in one or more property or services, of which death or illness several distinct things, separately insured by might delay or prevent the performance; and one policy, does not avoid the insurance as to (d) Of any person upon whose life any estate or the others. interest vested in him depends. Sec. 23. A change on interest, by will or Sec. 11. The insured shall have the right to succession, on the death of the insured, does change the beneficiary he designated in the not avoid an insurance; and his interest in the policy, unless he has expressly waived this right insurance passes to the person taking his in said policy. interest in the thing insured. Sec. 12. The interest of a beneficiary in a life Sec. 24. A transfer of interest by one of several insurance policy shall be forfeited when the partners, joint owners, or owners in common, beneficiary is the principal, accomplice, or who are jointly insured, to the others, does not accessory in willfully bringing about the death avoid an insurance even though it has been of the insured; in which event, the nearest agreed that the insurance shall cease upon an relative of the insured shall receive the alienation of the thing insured. proceeds of said insurance if not otherwise Sec. 25. Every stipulation in a policy of disqualified. insurance for the payment of loss whether the Sec. 13. Every interest in property, whether real person insured has or has not any interest in or personal, or any relation thereto, or liability the property insured, or that the policy shall be in respect thereof, of such nature that a received as proof of such interest, and every contemplated peril might directly damnify the policy executed by way of gaming or wagering, insured, is an insurable interest. is void. Sec. 14. An insurable interest in property may consist in:chanroblesvirtuallawlibrary POLICY: the written instrument in which a (a) An existing interest; contract of insurance set forth; (b) An inchoate interest founded on an existing WHO SIGN: interest; or i. Insured: or (c) An expectancy, coupled with an existing ii. Authorized agent; interest in that out of which the expectancy GENERAL RULE: arises. Insured fill out and sign an application Sec. 15. A carrier or depository of any kind has prepared by the insurer. an insurable interest in a thing held by him as POLICY CONTROLS TERMS OF such, to the extent of his liability but not to INSURANCE. exceed the value thereof. TERMS: constitute the measures of the Sec. 16. A mere contingent or expectant interest insurers liability; in anything, not founded on an actual right to PRESENCE OF REQUISITES FOR the thing, nor upon any valid contract for it, is VALIDITY (SECTION 2) : therefore there not insurable. will be a valid contract of insurance. Sec. 17. The measure of an insurable interest in POLICY A CONTRACT OF ADHESION: property is the extent to which the insured the policy is presented to the insured already in might be damnified by loss or injury thereof. its printed form so that he either takes it or Sec. 18. No contract or policy of insurance on leaves it most of the term of the contract do not property shall be enforceable except for the result mutual negotiations between the parties benefit of some person having an insurable as they are prescribed by the insurer in final interest in the property insured. and printed to which the insured may adhere if Sec. 19. An interest in property insured must he chooses but which he cannot change. It is exist when the insurance takes effect, and when for this reason that any ambiguity therein is the loss occurs, but not exist in the meantime; resolved in favor of the insured and against the and interest in the life or health of a person insurer. insured must exist when the insurance takes The policy must be in printed form. Group effect, but need not exist thereafter or when the insurance and group annuity policy: loss occurs. typewritten. In case of conflict between the Sec. 20. Except in the cases specified in the written and printed portions of a policy, the next four sections, and in the cases of life, written portion prevails. accident, and health insurance, a change of interest in any part of a thing insured