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).

In plain language

This law amends Section 72 of the Insurance Act to clarify that insurers are entitled to premium payment immediately upon exposure of the insured item, and that insurance policies are invalid until the premium has been paid.

Insurers are entitled to premium payment upon exposure of the insured item.

Insurance policies are invalid until premiums are paid.

Insurance

Premium

Policy

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.

Section 2

This Act shall take effect upon its approval.

Approved: June 20, 1963

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.