PRINCIPAL FORMS OF INSURANCE Suretyship

Marine Insurance or Transportation Insurance is 1. An agreement

concerned with the perils of property in (or incidental to) 2. whereby a party called the surety
transit as opposed to property perils at a generally fixed 3. guarantees the performance of another party
location. called the principal or obligor
4. of an obligation or undertaking
Ocean Marine Insurance is an insurance against risk
5. in favor of 3rd party called the obligee.
connected with navigation, to which a ship, cargo,
6. Surety must be doing an insurance business.
freightage, profits or other insurable interest in movable
property, may be exposed during a certain voyage or a Compulsory Motor Vehicle Liability Insurance answers
fixed period of time. for legal liability for losses and damages that may be
sustained by another arising from the use and operation
Inland Marine Insurance is insurance against
of motor vehicle by its owner.
1. Land or over the land transportation perils of
1. It compensates the death or bodily injuries
property shipped by railroads, motor trucks,
2. suffered by innocent 3rd persons or passengers
airplanes, and other means of transportation.
3. as a result of a negligent operation and use of
2. Risks of lake, river, or other inland waterway
motor vehicles.
transportation and other waterborne perils
4. Victims or defendants are assured of financial
outside of those risks that fall within the ocean
assistance, regardless of the financial capacity
marine category.
of the owners.
Fire Insurance

1. A contract of indemnity
What is No-fault Insurance?
2. by which the insurer
3. for a stipulated premium No-fault means that the victim recovers for his loss from
4. agrees to indemnify the insured against his own insurer, without regard to the fault of the 3rd
5. loss of, or damage to, a property party or his own contributory fault.
6. caused by HOSTILE fire
7. located at the place stated in the policy. 1. The substitution of first-party insurance for tort
liability (third-party insurance).
Fire-and-extended Coverage is INSURANCE against LOSS 2. Torts victim does not look for the tortfeasor and
by the latters insurer. Instead, he looks to his own
1. Fire insurer for first-party protection or
2. Lightning reimbursement.
3. Windstorm 3. First-party insurance is compulsory under the
4. Tornado typical no-fault scheme.
5. Earthquake; and What the all-risk insurance does NOT cover?
6. Other allied risks, when such risks are covered
by extension to fire insurance policies or under 1. Those NOT meeting the insurable interest
separate policies. requirement;
2. Those NOT meeting the causation rules;
Life Insurance is a contract to make specific payments to 3. Loss due to willful and fraudulent act of the
pay to a certain person, the beneficiary, on the death of insured; and
a person whose life has been insured. 4. Implied exceptions (like friendly fire rule).
Casualty or Accident Insurance covers loss or liability
arising from accident or mishap, excluding losses which
are considered as falling exclusively within the scope of WHAT MAY BE INSURED AGAINST
other types of insurance such fire, marine, suretyship,
and life.
 1. Future contingent event causing loss or
damage to the insured;
2. Past unknown event causing loss or damage to
the insured; and
3. Contingent liability (creating a liability against
the insured)

Requisites of a Valid Insurance Contract

1. Insured has insurable interest in the subject

matter;
2. Future contingent or unknown event, and a
duration for the risk;
Fortuitous event AND
Proximate cause of the loss (84, 1174)
3. Promise to pay or indemnify in a fixed or
ascertainable amount;
4. Premium
5. COC
6. Parties must be competent to contract.
7. Sec. 232: in the form approved by the Insurance
Commissioner.
8. Consent of the spouse is NOT necessary for the
validity of an insurance policy taken out by a
married person on his life or that of his children.
(3)