Parties to the Contract of Insurance

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Who may be an insurer and insured – An insurer includes every corporation, partnership, or association duly authorized to transact insurance business as provided in the Insurance Code.[1] Except a public enemy, anyone may be insured.[2]

Parties to a mortgage insurance – A mortgagor of a property, who takes out an insurance in his own name but providing that the loss is payable to the mortgagee or assigns a policy of insurance to a mortgagee, is deemed to be an insurance upon the interest of the mortgagor.[3] The mortgagor does not cease to be a party to the original contract, and any act of his, prior to the loss, which would otherwise avoid the insurance, will have the same effect, even if the property is in the hands of the mortgagee.[4] However, any act which, under the contract of insurance, is to be performed by the mortgagor, may be performed by the mortgagee therein named, with the same effect as if it had been performed by the mortgagor.”[5]

Same; Transfer with additional obligations on assignee – In case an insurer assents to the transfer of an insurance from a mortgagor to a mortgagee provided that the assignee agreed to additional obligations,[6] the acts of the mortgagor cannot affect the rights of the assignee.[7]

[1] P.D. 612 (Insurance Code), as amended, Paragraph 3, Section 6.

[2] Ibid. Paragraph 3, Section 7. A public enemy is one declared to be so by the State in times of war.

[3] Ibid. Section 8.

[4] Ibid.

[5] Ibid.

[6] This contemplates a situation where the insurer and the assignee entered into a new contract (Section 9, Insurance Code).

[7] INSURANCE CODE, as amended. Section 9.

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