SEC. 10. Every person has an insurable interest in the life and
health:
Of himself, of his spouse and of his children;
Of any person on whom he depends wholly or in part for education
or support, or in whom he has a pecuniary interest;
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
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.
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 which event, the nearest relative of the
insured shall receive the proceeds of said insurance if not otherwise
disqualified.
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:
An existing interest;
An inchoate interest founded on an existing interest; or
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 en 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 damaged 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 Ms 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.
Source: Official Gazette of the Republic of the Philippines — Philippine laws are public documents (works of the government).
