What is Life Insurance? What is Non-Life Insurance? What contributions does insurance give to the community? What are some questions in common under an insurance proposal form? What is a cover note? What is Insurable Interest? What is Utmost Good Faith? What is Indemnity? What is Subrogation? What is a Fire Insurance Policy? What is Personal Accident Insurance? Why is there a need for Marine Insurance? Who is Yapster e-Conglomerate and Yapster e-Insurance Brokers, Inc.? When did they start? How much is it capitalized? What are its visions? Who are their component companies? How will I benefit from this? What are your product lines? Everybody knows that life, non-life, and pre-need products are very important. How is it that they don't avail of this or are not fully "covered"? Can you customize a complete insurance package for my family, our properties and other related businesses? What is Life Insurance? Numerous plans are being marketed in this line, the most common of which are: term insurance, whole life, limited payment, and endowment. "... a policy of life insurance is not a mere contract of indemnity, but is a contract to pay the beneficiary a certain sum of money in the event of death, provided certain conditions are performed by the insured." (P. 184 Philippine Insurance Code, by L.A. Martinez, citing Tyler vs. Treasurer, 226 Mass. 306 back to top What is Non-Life Insurance? There are three (3) main classifications in this category: fire, marine, and casualty. Fire Insurance - The special perils of earthquake, typhoon, flood, riot and strike, falling aircraft, and impact of vehicles are written usually in conjunction with fire coverage. Included in this classification are householder's insurance (which are multi-line policies), sprinkler leakage, and business interruption (which includes rent insurance and removal of debris). Marine Insurance - This includes cargo, hull freight, and liability of the shipowner to the crew, passengers, or property of other third parties. Inland marine, which covers shipment of goods by trucks, railways, or ferry, is included in this classification. Casualty Insurance - This is the broadest classification which includes those lines of business that do not fall under fire or marine. Examples are motor car, workmen's compensation, personal accident, crime insurance, liability insurance, etc. back to top What contributions does insurance give to the community? The following are the salient contributions of insurance to the community: It helps in the optimum use of the factors of production. No businessman will invest his resource in a venture if no insurance is available, for example, who will invest millions in a factory or export his products abroad, if no insurance coverage is available? It contributes to the economy by decreasing chance of loss through loss-prevention activities. The insurance industry supports activities in safety research, health, education and loss prevention. Insurance contributes to social and business stability through indemnification. Many families and businesses are able to continue intact because losses are partly offset by funds from insurance. It provides a basis for the credit system. Creditors usually require debtors to purchase life insurance payable to the former, whilst mortgagees like banks and financial institutions invariably require mortgagors to secure property insurance. It reduces worry by reducing uncertainty. It is difficult to quantify the accomplishments of insurance in relieving the insured of his fears and mental anguish. For example, parents have deep-seated fears that when they die they may leave their children without any financial security. Life insurance reduces that worry by providing funds for the family. It eases financial problems from industrial injury, disability and old age. Insurance is a useful means of solving complex social problems. Victims of industrial accidents are compensated by workmen's compensation insurance, automobile accident victims are partly compensated under the compulsory third party liability insurance, and social insurance is used to partly solve problems of disability, unemployment and old age. It serves as a source of capital funds for the economy. The insurance industry is one of the biggest sources of funds for private business and government projects. Some insurance companies have created business and conglomerates, or have become part of conglomerate corporations. In the Philippines, the role of the insurance industry in finance and in the growth of basic industries cannot be overemphasized. back to top What are some questions in common under an insurance proposal form? Proposer's name - to identify the party to be insured. Proposer's address - this is necessary to identify and evaluate the risk in case of property insurance. Proposer's Occupation - this is particularly important for rating purposes in an accident policy. Previous and Present Insurances. Were previous proposals declined? Additional premium or special conditions imposed? Canceled or refused to renew at expiry? Claims experience - this is very important to evaluate the loss history of the insured. Sum insured desired - this is needed in determining the premium. back to top What is a cover note? A cover note, sometimes, refered to as a binder, is a temporary contract, pending the issuance of the policy. It is issued subject to the terms and conditions of the policy that will subsequently replace the cover note. It is a simple and effective way of extending temporary coverage while the policy is being prepared. It also gives underwriters time to inspect the property to see if it meets the underwriting standards of the company. back to top What is Insurable Interest? "Insurable interest is the legal right to insure." (W.A. Dinsdale) According to our own Insurance Code, an insurable interest is "every interest in property, whether real or personal, or any relation thereto, or liability in respect thereof, of such a nature that a contemplated peril might directly damnify the insured." (Sec. 13). This is for property. For life and health, it is provided under section 10 of the Insurance Code that - "Every person has an insurable interest in the life and health: Of himself, or his spouse and of his children; Of any person on whom he depends wholly or in part for education or support, or in whom he has a pecuniary interest; Of any person under a legal obligation to him for the payment of money, or respecting property or services, of which death or illness might delay or prevent the performance; and Of any person upon whose life any estate or interest vested in him depends." Some authority define insurable interest as that justifies an insurable contract, ("Insurance" by H.E. Raynes, p.31). In other words, "insurable interest is necessary in every contract of insurance" (W. A. Dinsdale). "The insured must have an insurable interest if the policy is to be valid" (A.H. Mowbray). Where there is no insurable interest, no insurance may be effected. This means that the relationship of the proposer of insurance to the proposed subject matter of insurance must be such that he will suffer prejudice should it be lost or damaged and will benefit by its safety." (Personal Accident Insurance" by R.C. Blanchard, p.11) "The insured must bear some legal relationship to the property which is the subject of the insurance, whereby he stands to benefit by its safety, or to be prejudiced as a result of loss or damage to such property. In like manner, where an indemnity is sought against a potential liability, the policyholder must stand to benefit by the absence of that liability, or to be prejudiced in the event of the creation of that liability." (Motor Insurance by A.G.M. Batten and W.A. Dinsdale, p.11) back to top What is Utmost Good Faith? The principle of Utmost Good Faith means that all contracts of insurance must be negotiated with the utmost good faith which applies both to the insurer and the proposer. "It is an obligation of the insured to disclose material facts, i.e., facts that would influence the insurer in deciding whether to accept the risk or in fixing the terms (including the price) of the contract." ("Insurance" by A.H. Mowbray) "Good faith forbids either party, by concealing what he privately knows, to draw the other into a bargain from his ignorance of that fact and his believing the contrary." (Carter V. Boehnm, 1976) "The duty of good faith implies that the proposer shall disclose to the Insurers everything material about the proposed subject matter of insurance which he knows, or ought to know, and that the insurer will disclose to the proposer the terms and conditions upon which the risk is likely to be acceptable." ("Personal Accident Insurance" by R.C. Blanchard p. 7-8) "The duty of utmost good faith requires... the full disclosure of all details which are in fact material to the risk, whether the proposer considers them material or otherwise." ("Motor Insurance" by A.G. Batten and W.A. Dinsdale, p. 9) back to top What is Indemnity? "Indemnity" is payment made for a certain loss or damages. In so far as insurance is concerned, the Principle of Indemnity is that principle by which an insured is compensated for losses sustained and is placed as such as possible in the same pecuniary position as he occupied immediately before the misfortune. back to top What is Subrogation? "Subrogation means the right of one person to stand in the place of another and to avail himself of the latter's rights and remedies. If the insured possesses any rights against a third party in respect of a loss under the policy, the principle of indemnity does not permit the Insured to recover the amount of his loss twice - from the Insurer and from the third party." (Fire Insurance Theory and Practice by T.R. Smith, p. 30) back to top What is a Fire Insurance Policy? A fire insurance policy is a fire insurance contract as it is the written document evidencing the contractual agreement between the Insured and Insurer, whereby the Insurer undertakes, for a consideration (premium), subject to certain conditions embodied in the contract, to pay or make good to the other party (Insured), up to an agreed amount (Sum Insured), for direct loss or damage to a particular property, caused during a specific period by fire or lightning. back to top What is Personal Accident Insurance? Personal Accident Insurance is that particular type of insurance which provides benefits/indemnity in case of losses to the person or physical well-being of an individual which arise out of an accident. back to top Why is there a need for Marine Insurance? Manufacturers and importers of goods, such as cars, cigarettes, flour and many other commodities need marine insurance to cover their exportation or importation of such goods. They go to the banks, open letters of credit and then wait for their shipments to go forward. Without a letter of credit they would not be able to facilitate their overseas transactions. For example, the banks will require the importers to obtain marine insurance to cover their importations as a condition for issuing a letter of credit. The manufacturer or importer can go directly to the insurance company to buy marine insurance or he can bring his business to an insurance broker who will provide him the necessary insurance cover from the insurance company. Hence, marine insurance is a form of financial protection for the manufacturer or importer as well as the banks. In case the shipment is lost before it arrives, the insurance company will reimburse them for their loss. Without marine insurance, it is not economical and practical to carry on overseas commerce. back to top Who is Yapster e-Conglomerate and Yapster e-Insurance Brokers, Inc.? When did they start? How much is it capitalized? What are its visions? Who are their component companies? How will I benefit from this? You can visit our portal at www.Yapster.com. Yapster e-Conglomerate is a diversified holding company with interests on the following businesses: Yapster e-Learning Inc., Yapster e-Travel Inc., Yapster e-Trade, Inc., Active Business Solutions Inc., Yapster Shared Services Inc., Yapster Office Systems, Inc. and the Interaction Center. P100 million has been invested in Yapster e-Conglomerate in November 1999 and P400 million more by the end of year 2000. This makes Yapster e-Insurance Brokers, Inc. stand out as a world-class full-service insurance brokerage. Yapster e-Insurance Brokers, Inc. (2InsureAll.com) aims to revolutionize the insurance industry and likewise TO INSURE ALL 2InsureAll.com is an online insurance broker with full transaction capabilities providing LOW PREMIUM rates, PORTFOLIO MANAGEMENT SYSTEM, NEWS, convenience and other USER-FRIENDLY FEATURES for non-life, life and pre-need insurance products. back to top What are your product lines? Initially, our product lines are Motor Car Insurance, Fire Insurance, Comprehensive General Liability Insurance, Personal Accident Insurance and Electronic Equipment Insurance. Life, Pre-Need Assurance and HMO Products will soon be available on our website as we continue to give the insuring public wider array of services to choose from. back to top Everybody knows that life, non-life, and pre-need products are very important. How is it that they don't avail of this or are not fully "covered"? Most people or companies are not fully-aware of the advantages of being fully-covered by insurance. At very competitive rates, fully and amply insuring oneself and the family as well as the factory/ies, residences, property/ies assures and secures peace of mind. This peace comes from the assurance that if the inevitable or unexpected happens, life and property is fully covered by insurance. To insure all is our mission. We can be easily accessed through the internet, 2InsureAll.com. You can also call or visit us in our business office at: 5th flr. BA-Lepanto Bldg., 8747 Paseo de Roxas St., Makati City Tel # 893-1111 back to top Can you customize a complete insurance package for my family, our properties and other related businesses? Yes! Simply access 2InsureAll.com and log-in your name and provide the information needed. We can then analyze your risk/s based on the information given and tailor custom-fit comprehensive insurance packages for your perusal. back to top Home | About Us | Products & Services | Our Portfolio | Insurance Panels | FAQs | Contact Us © Copyright 2002. 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