Amendment to Insurance Act Re: Payment of Premium on Insurance Policies
Republic Act No. 3540, enacted on June 20, 1963, amends Section 72 of the Insurance Act (Act No. 2427) regarding the payment of insurance premiums. The amendment stipulates that insurers are entitled to premium payments as soon as the insured item is exposed to risk, unless a clear agreement exists for a credit extension. Additionally, it establishes that no insurance policy is valid unless the premium has been paid. The Act took effect upon approval and was published in the Official Gazette on August 19, 1963.
Law Information
- Reference Number
- Republic Act No. 3540
- Date Enacted
- Category
- Statutes
- Subcategory
- Republic Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
June 20, 1963
REPUBLIC ACT NO. 3540
AN ACT TO AMEND SECTION SEVENTY-TWO OF THE INSURANCE ACT, (ACT NO. 2427) AS AMENDED (RE: PAYMENT OF PREMIUM ON INSURANCE POLICIES)
SECTION 1. Section Seventy-two of the Insurance Act, (Act No. 2427) As amended, is hereby amended to read as follows:
"Sec. 72. An insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against, unless there is clear agreement to grant the insured credit extension of the premium due. No policy issued by an insurance company is valid and binding unless and until the premium thereof has been paid. aisa dc
SECTION 2. This Act shall take effect upon its approval.
Approved: June 20, 1963
Published in the Official Gazette, Vol. 59, No. 33, p. 5244 on August 19, 1963
Cite This Law
Amendment to Insurance Act Re: Payment of Premium on Insurance Policies, Republic Act No. 3540, Jun 20, 1963 (Philippines)
Amendment to Insurance Act Re: Payment of Premium on Insurance Policies, Republic Act No. 3540 (Phil. 1963)
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