Republic Act No. 3540
Year:
1963
Category:
Other
Date Approved:
June 20, 1963
Summary
Plain-language AI-assisted summary — not the official text. As of July 1, 2026. Read the full text below or on the official source.
This Act amends Section Seventy-two of the Insurance Act to clarify the entitlement of insurers to premium payments as soon as the insured item is exposed to peril. It establishes that no insurance policy is valid unless the premium has been paid.Full Text
REPUBLIC ACT No. 3540
AN ACT TO AMEND SECTION SEVENTY-TWO OF THE INSURANCE ACT, (Act. No. 2427) AS AMENDED (re-payment of premium on insurance policies).
Section 1. Section Seventy-two of the Insurance Act, (Act No. 2427) As amended, is hereby amended to read as follows:
"Sec. 72. An insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against, unless there is clear agreement to grant the insured credit extension of the premium due. No policy issued by an insurance company is valid and binding unless and until the premium thereof has been paid.
Section 2. This Act shall take effect upon its approval.
Approved: June 20, 1963
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Republic Acts are laws passed by the Congress of the Philippines. This content is sourced from LawPhil (lawphil.net) for reference purposes. For official and authoritative texts, please refer to the Official Gazette.