Practice question
An insurer and policyholder agree to an additional payment specifically for future premiums. A reviewer calls it an illegal overcharge solely because it exceeds the current regular premium, without considering the agreed purpose. Which is best?
- Any additional payment is necessarily unlawful regardless of agreement
- Section 84 expressly permits the stated type of agreement; its actual terms and compliance still matter
- Every extra payment automatically buys a new corporation
- Only the sum’s roundness matters
- All future-premium arrangements are prohibited
Legal references
- Insurance Code as amended by RA 10607: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html; Sections 82,84.
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