Practice question
An insurance contract is stipulated to have a character where the final premium is determinable only at termination. Its document provides neither the final amount nor any basis or rate. Officers say the variable character excuses all premium disclosure. Which is best?
- The statutory alternative still requires the basis and rates
- Variable premiums are entirely outside all policy requirements
- Only the ink signature determines calculation
- The insurer may secretly choose any amount after loss
- The policyholder’s silence automatically states a rate
Legal references
- Insurance Code as amended by RA 10607: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html; Section 51.
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