Practice question
A company regularly undertakes as surety for clients as its vocation. It argues that suretyship can never fall within the Insurance Code. Which is correct?
- All suretyship is automatically outside the Code
- Only free suretyship can be insurance
- The surety’s vocation is irrelevant
- The Code treats suretyship as insurance when made by a surety doing insurance business as defined
- Every personal guarantee is necessarily insurance business
Legal references
- https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html — Insurance Code as amended by RA 10607, sections 2–7 and 49
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