Martes, Setyembre 23, 2014

One of the characteristics of an insurance contract

Contracts of insurance are contracts of indemnity upon the terms and conditions specified in the policy. The agreement has the force of law between the parties. The terms of the policy constitute the measure of the insurer's liability. If such terms are clear and unambiguous, they must be taken and understood in their plain, ordinary and popular sense (Pacific Banking Corp. vs. Court of Appeals, G.R. No. 41014, Nov. 28, 1988).

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