Practice question
Insured O has a policy with A. A separately reinsures its liability with B. O argues that A's reinsurance automatically makes B a second direct insurer of O under an identical policy. Is that correct under Sections 97–100?
- Yes, every reinsurance creates a direct policy for O.
- Yes, B automatically signs every original policy.
- Yes, A disappears from the transaction.
- Yes, O becomes A's reinsurer.
- No; the contracts protect different legal interests and the statutory rule gives O no interest in the reinsurance.
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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