Practice question
A life insurance policy is within an applicable contractual and statutory grace period when the next premium remains unpaid. An insurer says nonpayment always defeats coverage without any exception. Which is correct?
- The Code contains no grace-period exception
- Every unpaid policy is always binding forever
- Only property insurance has a life-policy grace period
- The policy automatically becomes a bank account
- Section 77 expressly recognizes the applicable life or industrial-life grace-period exception
Legal references
- Insurance Code as amended by RA 10607, Section 77: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
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