Practice question
A membership operator promises defined payments for contingent losses and tries to evade regulation by calling the arrangement a friendship benefit, without examining its substance. Which is best?
- The name conclusively excludes insurance law
- Any membership label creates immunity
- Only printed policies can ever be examined
- All friendship groups necessarily do insurance business
- The substance must be assessed; section 2 includes equivalent business designed to evade the Code
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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