"TITLE 11"DOUBLE INSURANCE

"Section 95. A double insurance exists where the same person is insured by several insurers
separately in respect to the same subject and interest.
"Section 96. Where the insured in a policy other than life is over insured by double insurance:
"(a) The insured, unless the policy otherwise provides, may claim payment from the insurers in such
order as he may select, up to the amount for which the insurers are severally liable under their
respective contracts;
"(b) Where the policy under which the insured claims is a valued policy, any sum received by him
under any other policy shall be deducted from the value of the policy without regard to the actual
value of the subject matter insured;
"(c) Where the policy under which the insured claims is an unvalued policy, any sum received by him
under any policy shall be deducted against the full insurable value, for any sum received by him
under any policy;
"(d) Where the insured receives any sum in excess of the valuation in the case of valued policies, or
of the insurable value in the case of unvalued policies, he must hold such sum in trust for the
insurers, according to their right of contribution among themselves;
"(e) Each insurer is bound, as between himself and the other insurers, to contribute ratably to the
loss in proportion to the amount for which he is liable under his contract.
"TITLE 12"REINSURANCE
"Section 97. A contract of reinsurance is one by which an insurer procures a third person to insure
him against loss or liability by reason of such original insurance.
"Section 98. Where an insurer obtains reinsurance, except under automatic reinsurance treaties, he
must communicate all the representations of the original insured, and also all the knowledge and
information he possesses, whether previously or subsequently acquired, which are material to the
risk.
"Section 99. A reinsurance is presumed to be a contract of indemnity against liability, and not merely
against damage.
"Section 100. The original insured has no interest in a contract of reinsurance.
"TITLE 7"REINSURANCE TRANSACTIONS
"Section 222. An insurance company doing business in the Philippines may accept reinsurances
only of such risks, and retain risk thereon within such limits, as it is otherwise authorized to insure.
"Section 223. No insurance company doing business in the Philippines shall cede all or part of any
risks situated in the Philippines by way of reinsurance directly to any foreign insurer not authorized
to do business in the Philippines unless such foreign insurer or, if the services of a nonresident
broker are utilized, such nonresident broker is represented in the Philippines by a resident agent
duly registered with the Commissioner as required in this Code.

"The resident agent of such unauthorized foreign insurer or nonresident broker shall immediately
upon registration furnish the Commissioner with the annual statement of such insurer, or of such
company or companies where such broker may place Philippine business as of the year preceding
such registration, and annually thereafter as soon as available.
"Section 224. All insurance companies, both life and non-life, authorized to do business in the
Philippines shall cede their excess risks to other companies similarly authorized to do business in
the Philippines in such amounts and under such arrangements as would be consistent with sound
underwriting practices before they enter into reinsurance arrangements with unauthorized foreign
insurers.
"Section 225. Any insurance company doing business in the Philippines desiring to cede their
excess risks to foreign insurance or reinsurance companies not authorized to transact business in
the Philippines may do so under such terms and conditions which the Commissioner may prescribe.
"Should any reinsurance agreement be for any reason cancelled or terminated, the ceding company
concerned shall inform the Commissioner in writing of such cancellation or termination within thirty
(30) days from the date of such cancellation or termination or from the date notice or information of
such cancellation or termination is received by such company as the case may be.
"Section 226. Every insurance company authorized to do business in the Philippines shall report to
the Commissioner on forms prescribed by him the particulars of reinsurance treaties or any new
treaties or changes in existing treaties within three (3) months from their effectivity.
"Section 227. No credit shall be allowed as an admitted asset or as a deduction from liability, to any
ceding insurer for reinsurance made, ceded, renewed, or otherwise becoming effective after
January 1, 1975, unless the reinsurance shall be payable by the assuming insurer on the basis of
the liability of the ceding insurer under the contract or contracts reinsured without diminution
because of the insolvency of the ceding insurer nor unless under the contract or contracts of
reinsurance the liability for such reinsurance is assumed by the assuming insurer or insurers as of
the same effective date; nor unless the reinsurance agreement provides that payments by the
assuming insurer shall be made directly to the ceding insurer or to its liquidator, receiver, or statutory
successor except:
"(a) Where the contract specifically provides another payee of such reinsurance in the event of the
insolvency of the ceding insurer; and
"(b) Where the assuming insurer with the consent of the direct insured or insureds has assumed
such policy obligations of the ceding insurer as direct obligations of the assuming insurer to the
payees under such policies and in substitution for the obligations of the ceding insurer to such
payees.
"Section 228. No life insurance company doing business in the Philippines shall reinsure its whole
risk on any individual life or joint lives, or substantially all of its insurance in force, without having first
obtained the written permission of the Commissioner.