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Republic Acts

AN ACT TO AMEND SECTION SEVENTY-TWO OF THE INSURANCE ACT

Republic Act No. 3540

REPUBLIC ACT No. 3540

AN ACT TO AMEND SECTION SEVENTY-TWO OF THE INSURANCE ACT, (Act. No. 2427) AS AMENDED (re-payment of premium on insurance policies).

Section 1. Section Seventy-two of the Insurance Act, (Act No. 2427) As amended, is hereby amended to read as follows:

"Sec. 72. An insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against, unless there is clear agreement to grant the insured credit extension of the premium due. No policy issued by an insurance company is valid and binding unless and until the premium thereof has been paid.

Section 2. This Act shall take effect upon its approval.

Approved: June 20, 1963


Summary of Republic Act No. 3540

Amendments to Section 72 of the Insurance Act (Act No. 2427):
- An insurer is entitled to payment of the premium as soon as the insured is exposed to the peril insured against, unless there is a clear agreement to grant the insured credit extension of the premium due. (Section 1)
- No insurance policy issued by an insurance company is valid and binding unless and until the premium has been paid. (Section 1)
- This Act took effect upon its approval on June 20, 1963. (Section 2)

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