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GENERAL RULE AS TO CHANGE IN INTEREST OF THING – Generally, a change in interest in the
thing insured without a change in insurance does not transfer the policy but suspends it until the interest in the thing and the interest in the insurance are vested in the same person.
EXCEPTION TO THE GENERAL RULE IN THE CHANGE OF INTEREST IN THE THING INSURED
WITHOUT A CHANGE IN INSURANCE: In case of life, health and accident insurance:
1. When the change in interest results after the occurrence of an injury which results in a loss
2. A change of interest in one or more several distinct things, separately insured by one policy
3. A change in the interest by will or succession on the death of the insured (interest passes
to the heirs)
4. A transfer of interest by one of several partners, joint owners in common who are jointly insured to the others (even though it has been agreed that the insurance shall seize upon the alienation of the thing insured).
thing insured without a change in insurance does not transfer the policy but suspends it until the interest in the thing and the interest in the insurance are vested in the same person.
EXCEPTION TO THE GENERAL RULE IN THE CHANGE OF INTEREST IN THE THING INSURED
WITHOUT A CHANGE IN INSURANCE: In case of life, health and accident insurance:
1. When the change in interest results after the occurrence of an injury which results in a loss
2. A change of interest in one or more several distinct things, separately insured by one policy
3. A change in the interest by will or succession on the death of the insured (interest passes
to the heirs)
4. A transfer of interest by one of several partners, joint owners in common who are jointly insured to the others (even though it has been agreed that the insurance shall seize upon the alienation of the thing insured).
