Practice question
A non-life policy is issued under a valid broker agreement with a duly licensed intermediary granting the statutory ninety-day credit extension. A covered event occurs on day fifty while that extension remains effective. The insurer relies solely on nonpayment before loss and says the general premium rule has no broker-agreement exception. Which is best?
- Section 77 expressly recognizes the stated credit exception; the insurer's categorical argument fails
- The exception can never apply to a licensed broker
- Every policy requires cash before any coverage despite the statutory text
- The extension may automatically run for ten years
- A broker agreement eliminates every other coverage condition
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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