Policy
Policy
Policy
Section 60 to 66
By: Carlo Franco B. Rapay
Section 60
“ An open policy is one in which the value of the thing insured is not agreed
upon, and the amount of the insurance merely represents the insurer’s
maximum liability. The value of such thing insured shall be ascertained at the
time of the loss.”
Section 61- A valued policy is one which expresses on its face an
agreement that the thing insured shall be valued at a specific sum.
(b) That, upon written request of the named insured, the insurer will furnish the
facts on which the cancellation is based.
Requirements:
3. Notice must state which of the grounds set forth in Sec. 64 is relied upon and
upon request of theinsured, the insurer must furnish facts on which the
cancellation is based;
4. Grounds should have existed after the effectivity date of the policy
NOTICE MAILED BUT NOT
RECEIVED.
• The notice of cancellation necessary to produce the effect of terminating the
contract must be actual notice. Thus a notice of cancellation sent by mail,
but not received by the insured, is ineffective as cancellation.
After cancelling the policy pursuant to Section 64 allowing the same, notice of
cancellation must be sent to the insured himself not to some other person so
as to enable the insured to procure another insurance, otherwise the
cancellation is not valid.
Section 66
• In case of insurance other than life, unless the insurer at least forty-five (45) days in
advance of the end of the policy period mails or delivers to the named insured at
the address shown in the policy notice of its intention not to renew the policy or to
condition its renewal upon reduction of limits or elimination of coverages, the
named insured shall be entitled to renew the policy upon payment of the premium
due on the effective date of the renewal.
• Any policy written for a term of less than one (1) year shall be considered as if
written for a term of one (1) year. Any policy written for a term longer than one (1)
year or any policy with no fixed expiration date shall be considered as if written for
successive policy periods or terms of one (1) year.
• It gives the insured the option to renew property insurance by the payment
of the premium due on the effective date of renewal unless at least forty five
days prior to the end of policy, the insurer gives notice of its intention not to
renew the policy.