[REPUBLIC ACT NO. 10607]SECTION1. This Decree shall beknownas TheInsurance Code.SEC. 2. Wheneer usedin!his Code" !he#ollowin$!er%s shall hae !he res&ec!ie %eanin$s hereina#!er se!#or!h or indica!ed" unless !he con!e'! o!herwise re(uires)*a+ , contract of insuranceisana$ree%en! whereb-one under!akes #or a considera!ion !o inde%ni#- ano!hera$ains! loss" da%a$e or liabili!- arisin$ #ro% anunknown or con!in$en! een!.,con!rac! o# sure!-shi& shall be dee%ed !o be aninsurance con!rac!" wi!hin!he %eanin$o# !his Code"onl- i# %ade b- a sure!- who or which" as such" is doin$an insurance business as hereina#!er &roided.*b+ The !er%doing an insurance businessortransactinganinsurancebusiness" wi!hin!he%eanin$o# !his Code" shall include)*1+ .akin$ or &ro&osin$ !o %ake" as insurer" an-insurance con!rac!/*2+ .akin$ or &ro&osin$ !o %ake" as sure!-" an-con!rac!o#sure!-shi&asaoca!ionandno!as%erel-inciden!al !o an- o!her le$i!i%a!e business or ac!ii!- o#!he sure!-/*0+ Doin$ an- kind o# business" includin$ a reinsurancebusiness" s&eci#icall- reco$ni1ed as cons!i!u!in$ !hedoin$o#aninsurancebusinesswi!hin!he%eanin$o#!his Code/*2+ Doin$ or &ro&osin$ !o do an- business in subs!ancee(uialen! !o an- o# !he #ore$oin$ in a %anner desi$ned!o eade !he &roisions o# !his Code.In!hea&&lica!iono#!he&roisionso#!hisCode" !he#ac! !ha! no &ro#i! is deried #ro%!he %akin$ o#insurancecon!rac!s" a$ree%en!sor !ransac!ionsor !ha!no se&ara!e or direc! considera!ion is receied !here#or"shall no! be dee%ed conclusie !o show !ha! !he %akin$!hereo# does no! cons!i!u!e !he doin$ or !ransac!in$ o# aninsurance business.*c+ ,s used in !his Code" !he !er% Commissioner %eans!he Insurance Commissioner.C3,4TE5 IT3E CONT5,CT O6 INS75,NCETIT8E 1W3,T .,9 :E INS75EDSEC. 0. ,n-con!in$en! or unknowneen!" whe!her&as!or #u!ure"which %a-da%ni#-a&ersonhain$ aninsurable in!eres!" or crea!e a liabili!- a$ains! hi%" %a-be insured a$ains!" sub;ec! !o !he &roisions o# !hischa&!er.The consen! o# !he s&ouse is no! necessar-#or !healidi!-o#aninsurance&olic-!akenou! b-a%arried&erson on his or her li#e or !ha! o# his or her children.,llri$h!s"!i!le andin!eres!in !he&olic- o#insurance!aken ou! b- an ori$inal owner on !he li#e or heal!h o# !he&erson insured shall au!o%a!icall- es! in !he la!!er u&on!he dea!h o# !he ori$inal owner" unless o!herwise&roided #or in !he &olic-.SEC. 2. The&recedin$sec!iondoesno! au!hori1eaninsurance #or or a$ains! !he drawin$ o# an- lo!!er-" or #orora$ains! an-chanceor!icke! inalo!!er-drawin$a&ri1e.SEC. . ,n-one e'ce&! a &ublic ene%- %a- be insured.SEC. ?. 7nless !he &olic- o!herwise &roides" where a%or!$a$or o# &ro&er!- e##ec!s insurance in his own na%e&roidin$ !ha! !he loss shall be &a-able !o !he %or!$a$ee"or assi$ns a&olic-o# insurance !oa%or!$a$ee" !heinsurance is dee%ed !o be u&on !he in!eres! o# !he%or!$a$or" whodoes no! cease !obe a &ar!-!o!heori$inal con!rac!" andan-ac! o#his" &rior!o!heloss"whichwouldo!herwiseaoid!heinsurance" will hae!he sa%e e##ec!" al!hou$h !he &ro&er!- is in !he hands o#!he %or!$a$ee" bu! an- ac! which" under !he con!rac! o#insurance" is !o be &er#or%ed b- !he %or!$a$or" %a- be&er#or%edb-!he %or!$a$ee!hereinna%ed" wi!h!hesa%e e##ec! as i# i! had been &er#or%ed b- !he %or!$a$or.SEC. @. I# an insurer assen!s !o !he !rans#er o# aninsurance #ro% a %or!$a$or !o a %or!$a$ee" and" a! !he!i%eo# hisassen!" i%&oses#ur!her obli$a!ionson!heassi$nee" %akin$ a new con!rac! wi!h hi%" !he ac!s o# !he%or!$a$or canno! a##ec! !he ri$h!s o# said assi$nee.TIT8E 0INS75,:8E INTE5ESTSEC. 1A. Eer- &erson has an insurable in!eres! in !heli#e and heal!h)*a+ O# hi%sel#" o# his s&ouse and o# his children/*b+O#an-&ersononwho%hede&endswholl-orin&ar! #or educa!ionor su&&or!" or inwho%he has a&ecuniar- in!eres!/*c+O#an- &ersonundera le$alobli$a!ion !o hi%#or!he &a-%en! o# %one-" or res&ec!in$ &ro&er!- orserices" o# which dea!h or illness %i$h! dela- or &reen!!he &er#or%ance/ and*d+ O# an- &erson u&on whose li#e an- es!a!e or in!eres!es!ed in hi% de&ends.SEC. 11. The insured shall hae !he ri$h! !o chan$e !hebene#iciar-hedesi$na!edin!he&olic-" unlesshehase'&ressl- waied !his ri$h! in said &olic-.No!wi!hs!andin$ !he #ore$oin$" in !he een! !he insureddoes no! chan$e !he bene#iciar- durin$ his li#e!i%e" !hedesi$na!ion shall be dee%ed irreocable.SEC. 12. The in!eres! o# a bene#iciar- in a li#einsurance &olic- shall be #or#ei!ed when !he bene#iciar-is !he&rinci&al" acco%&lice" or accessor-inwill#ull-brin$in$ abou! !he dea!h o# !he insured. In such a case"!he share #or#ei!ed shall &ass on !o !he o!herbene#iciaries" unless o!herwise dis(uali#ied. In !heabsence o# o!her bene#iciaries" !he &roceeds shall be &aidinaccordance wi!h!he &olic-con!rac!. I# !he &olic-con!rac! is silen!" !he &roceeds shall be &aid !o !he es!a!eo# !he insured.SEC. 10. Eer-in!eres! in&ro&er!-" whe!her real or&ersonal" oran-rela!ion!here!o" orliabili!-inres&ec!!hereo#" o# such na!ure!ha! acon!e%&la!ed&eril%i$h!direc!l- da%ni#- !he insured" is an insurable in!eres!.SEC. 12. ,n insurable in!eres! in &ro&er!- %a- consis!in)*a+ ,n e'is!in$ in!eres!/*b+ ,n inchoa!e in!eres! #ounded on an e'is!in$ in!eres!/or*c+ ,n e'&ec!anc-" cou&led wi!h an e'is!in$ in!eres! in!ha! ou! o# which !he e'&ec!anc- arises.SEC. 1. The %easure o# an insurable in!eres! in&ro&er!-is !hee'!en! !owhich!heinsured%i$h! beda%ni#ied b- loss or in;ur- !hereo#.SEC. 1?. No con!rac! or &olic- o# insurance on &ro&er!-shall be en#orceable e'ce&! #or !he bene#i! o# so%e&erson hain$ an insurable in!eres! in !he &ro&er!-insured.SEC. 1@. ,nin!eres! in&ro&er!-insured%us! e'is!when !he insurance !akes e##ec!" and when !he lossoccurs" bu! need no! e'is! in !he %ean!i%e/ and in!eres!in !he li#e or heal!h o# a &erson insured %us! e'is! when!he insurance !akes e##ec!" bu! need no! e'is! !herea#!er orwhen !he loss occurs.SEC. 2A. E'ce&! in !he cases s&eci#ied in !he ne'! #oursec!ions" andin!hecaseso#li#e" acciden!" andheal!hinsurance" achan$eo# in!eres! inan-&ar! o# a!hin$insuredunacco%&aniedb-acorres&ondin$chan$eo#in!eres! in!heinsurance" sus&ends!heinsurance!oane(uialen! e'!en!" un!il !he in!eres! in !he !hin$ and !hein!eres! in !he insurance are es!ed in !he sa%e &erson.SEC. 21. , chan$e o# in!eres! in a !hin$ insured" a#!er!he occurrence o# an in;ur- which resul!s in a loss" doesno!a##ec!!heri$h!o#!heinsured!oinde%ni!-#or!heloss.SEC. 22. , chan$e o# in!eres! in one or %ore o# seeraldis!inc! !hin$s" se&ara!el- insured b- one &olic-" does no!aoid !he insurance as !o !he o!hers.SEC. 20. , chan$e o# in!eres!" b- will or succession" on!hedea!ho#!heinsured" doesno! aoidaninsurance/andhis in!eres! in!heinsurance&asses !o!he&erson!akin$ his in!eres! in !he !hin$ insured.SEC. 22. ,!rans#er o# in!eres! b- one o# seeral&ar!ners" ;oin! owners" orownersinco%%on" whoare;oin!l- insured" !o !he o!hers" does no! aoid an insuranceeen !hou$h i! has been a$reed !ha! !he insurance shallcease u&on an aliena!ion o# !he !hin$ insured.SEC. 2