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General Rule – The insured is not required to communicate the nature (or kind) or the amount of
his insurable interest in the life or property insured to the insurer.
Exceptions –
1. When the insurer makes inquiry from the insured of the nature or amount of the latter’s
insurable interest, whether in life or property insurance;
2. Insurance policy must specify the interest of the insured in the property insured, if he is
not the absolute owner thereof.
Note: Concealment, whether intentional or not, entitles the injured party to rescind a contract of
insurance, provided the:
1. Party concealing must have knowledge of the facts concealed;
2. Facts concealed must be material to the risk;
3. Party is duty bound to disclose such fact to the other;
4. Party concealing makes no warranty as to the facts concealed;
5. Other party has no other means of ascertaining the facts concealed.
his insurable interest in the life or property insured to the insurer.
Exceptions –
1. When the insurer makes inquiry from the insured of the nature or amount of the latter’s
insurable interest, whether in life or property insurance;
2. Insurance policy must specify the interest of the insured in the property insured, if he is
not the absolute owner thereof.
Note: Concealment, whether intentional or not, entitles the injured party to rescind a contract of
insurance, provided the:
1. Party concealing must have knowledge of the facts concealed;
2. Facts concealed must be material to the risk;
3. Party is duty bound to disclose such fact to the other;
4. Party concealing makes no warranty as to the facts concealed;
5. Other party has no other means of ascertaining the facts concealed.
