Practice question
A reinsurance agreement is silent on whether it indemnifies liability or only prior actual payment. The reinsurer asserts a universal presumption that nothing can be due until the original insurer first pays cash to its policyholder. Which Section 99 point is relevant?
- The statute presumes only actual damage in every case.
- The original insured must first become a reinsurer.
- The statutory presumption is indemnity against liability, not merely damage; a categorical contrary presumption is incorrect.
- Every claim is automatically payable regardless of contract and proof.
- Reinsurance terms can never be examined.
Legal references
- Insurance Code as amended by RA10607, Sections26–48 and95–100: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
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