Spanish Commercial Code - Book II - Contracts and Obligations in General - Part VIII - General Insurance – Private Insurance

SPANISH COMMERCIAL CODE

Title VIII

INSURANCE IN GENERAL AND IN PARTICULAR THE INSURANCE LAND

§ 1. Definitions

Article 512. Insurance is a bilateral, conditional, random by which a natural or legal person takes upon himself a certain time any or all of the risks of loss or damage that are certain objects that belong to someone, forcing, for a fee agreed to compensate the loss or other damages suffered by the objects estimable insured.

Article 513. It is called insurance the person taking the risk of his own, ensured that it is free, and premium pay or insurance rates.

Risk means the possibility of any unforeseen circumstances that may cause loss or damage to the insured.

Loss is loss or damage of the goods insured.

More sinister called the total or near total loss, and left the less simple the insured property damage.

The loss or impairment of the three quarters of the value of the insured is considered a total loss only in cases specified by law.

Insurance is land or sea.

§ 2. Provisions common to terrestrial and marine insurance

Article 514. The insurance is refined and tested by a public, private or official, which is authorized by a broker or a Chilean consul in your case.

The documentary evidence of insurance is called policy.

The policy may be nominated widespread favor of the insured, in order or to bearer.

Writing giving private or official, shall extend two copies for mutual receipt of the parties.

Article 515. The insurance set it as a promise orally, provided that the contractors have agreed formally in the thing, and risk premium.

The promise can be justified by any means of proof admitted in commercial matters, and authorizes each of the parties to sue the other the issuance of the policy.

Article 516. Any policy should contain:

1. ° The names of the insurer and insured and address of both;

2. ° The declaration of the quality that takes the insured to obtain insurance;

3. ° The clear and precise designation of the value and nature of the insured;

4. ° The insured amount;

5. ° The risk that the insurer takes upon himself;

6. ° The day begins and concludes that the risk to the insurer;

7. ° The insurance premium, and time, place and manner in which it is to be paid;

8. ° The date, stating the time;

9. ° The enunciation of all the circumstances that the insurer can provide accurate and complete knowledge of the risks, and all other provisions that we did the parties.

Article 517. Regarding the insured, insurance is a contract for mere compensation, and can never be for him an opportunity to profit.

Article 518. Insurance can celebrate all the people working to be bound.

But the insured is required in addition to the legal, having the time of the contract a real interest in avoiding risks, whether as owner, partner, trustee, tenant, tenant, creditor or administrator of property of others, is in any other that constitutes interested in the preservation of the insured object.

Insurance in missing this interest is void and of no value.

Article 519. The insurance may be hired on their own, or by a third party under a general or special power, even without your knowledge and consent.

It is understood that the amount that insurance has hired, since the policy does not express it on behalf of a third.

Article 520. Because they take their own insurance to ensure the object sent is understood that the president said according to the instructions of the principal.

In the absence of instructions, the insurance shall be made under the usual conditions in the place where the president should execute the command.

Article 521. It is of no value set by the insurance unofficial agent, if the applicant or his agent, ignoring the existence of this contract, has made secure the same object.

Article 522. They can be assured all things tangible or intangible, provided there at the time of contract or the time it begins to take risks on behalf of the insurer, with an estimated value of money can be a legitimate speculation, and are exposed to risk losing by taking upon himself the insurer.

Therefore, there may be a matter of insurance:

1. ° The gains or benefits;

2. ° The objects of illicit trade;

3. ° The things fully insured, unless the last insurance relates to a different time or risks of a different nature than those comprising the former;

4. ° The things that have already run the risk, saved or lost háyanse it.

The sure things do not fulfill all the conditions stated in the first paragraph of this article is null and void.

Article 523. The insurer can reinsure, on conditions more or less favorable than those provided for the same things he been insured.

Reinsurance does not extinguish the obligations of the insurer or the insured giving direct action against the reinsurer.

The insurer and the insured can not enter into reinsurance, but the second can ensure the cost of insurance and the risk of insolvency of the first.

Article 524. Commercial establishments such as warehouses, bazaars, shops, factories and others, land or sea cargo can be secured with or without specific designation of goods and other objects they contain.

Furniture that constitute the furniture of a house can also be secured in the same way, except they have a great price, such as jewelry, family pictures, art or similar, which will be secured by appointment.

In either case, the insured must identify the insured and justify their existence and value at the time of the accident.

Article 525. Having held many successive insurance in good faith on different dates, only valid to the first, always covering the full value of the secured object.

No covering, insurers respond after unpaid value of the order of the dates of their contracts.

Insurers whose contracts remain to be canceled for lack of insurable value, the premium refunded, except their right to compensation may exist.

Article 526. When multiple insurers to ensure together or separately on the same date an amount that exceeds the true value of the insured, shall not be responsible, but to the extent of that value in proportion to the amount that each of them has secured.

The insurance is presumed undated held on the date immediately follows.

Article 527. In cases under the two preceding articles, the insured may terminate a prior insurance to insurers accountable later.

Relieved of their obligations to the previous insurers, the insured will be in place in the same order and by the same amount of their insured HAVE.

In this case, the insured will hire a new insurance, insurers take their place in the manner expressed in the preceding paragraph.

Article 528. But one thing has been insured for its full value, it is possible to secure it again under the condition that the second insurer is liable if the insured is fully indemnified by the first insurer.

In this case the agreement or agreements shall be clearly described the new policy, under penalty of nullity, and apply the rules laid down in Articles 525 and 526.

Article 529. Giving up in legal form of insurance contract, the insurer may again make sure the insured for the same time and the same risks.

The new policy will be mentioned, under penalty of nullity, both the previous and safe withdrawal.

Article 530. Transmitted by universal or singular property of the insured, the insurance for the benefit of the purchaser shall, without transfer, from the time that the risks apply to you, unless clearly stating that the insurance was agreed by the insurer in consideration to the insured person.

Article 531. In case of transmission by singular title, the insurer may require the purchaser to declare the act of the injunction whether or not to take advantage of insurance.

If the insured refuses and he remains an interest in the thing, the insurance will continue on his behalf to the extent of their interest.

If he remains no interest, it shall be extinguished from the time the insurance of alienation, and the insurer of the insured may claim the payment of any bonus or compensation, depending on the nature of insurance.

Article 532. Insurance is not effective competition until the true value of the insured object, even if the insurer has been made responsible for an amount that exceeds it.

While not being secured the full value of the thing, the insurer is only obliged to compensate the loss pro rata to the amount insured and what is not.

However, interested parties may stipulate that the insured does not bear any part of the loss or damage, but in the event that the amount of the loss exceeds the sum insured.

Article 533. Omitted in the policy determining the value of the goods insured, the insured may be set by all the evidence that supports this Code.

Article 534. Although the value has been formally stated in the policy, the insurer or the insured can prove that the estimate was inflated by error or fraud.

Declaring that there was too much for error in the estimate, the sum insured and the premium will be reduced to concurrence of the true value of the insured, and the insurer may require the difference between that value and the policy set out in compensation to may apply.

Testing the insurer the difference between the actual value of the objects and the insured amount comes from the insured's intent, it may not require the insurance payment in case of accident or excuse to pay the insurance premium in full, without prejudice criminal action.

But if the insurer has been subject appraised by experts chosen by the parties, the insurer can not contest, except in cases of fraud, the value of those attributed to it.

Article 535. If the policy contains no express or implied designation of the amount insured, it is understood that the insurer undertakes to indemnify the loss or damage to competition in the value of the insured at the time of the accident.

There are express designation not only as expressly refers to the amount insured, but where the insurer agrees to pay all or part of the value of the insured under the estimate be made of it at the time of the incident, or when set to the environmental policy to set the sum insured.

There is tacit appointment, provided that the policy contains the valuation of the insured object, setting the premium, or any other data sufficient to determine the sum insured.

Article 536. The insurer can take on some or all of the risks it is exposed to the insured.

No insurance is expressly limited to certain risks, the insurer liable for all but the statutory exceptions.

Article 537. In the absence of stipulation, the risks begin to be borne by the insurer since the parties sign the policy, unless the law provides otherwise.

The courts determined in the hypothesis proposed duration of the risks, taking into consideration the terms of the policy, local customs and other circumstances.

Article 538. The insured can not change by itself rather than risk or any other of the circumstances that have been taken into account to estimate it.

The variation performed without consent of the insurer authorizes the termination of the contract if, in the opinion of the competent court, stretch out or be heavy risks.

Article 539. The incident occurred presumably by accident, but the insurer can prove to have been caused by an accident is not responsible for its consequences, according to the convention or law.

Article 540. The clause in which the insurer agrees to go through the insured's estimate of the damage done, has no other effect than to impose the obligation of the first test.

Article 541. The insurance premium contracted without stipulation is void and of no value.

Article 542. The insurer earns bonus irrevocably from the moment that the risks begin to run on their own.

Article 543. The premium may consist of a sum of money, or the provision of a thing or a fact made even money, and paid all at once or partially for months or years.

In the absence of stipulation, the premium is payable in cash, and consisting of a percentage or a lump sum, shall be payable from the insurer begins to take the risks.

The premium set forth in periodic installments will be paid at the beginning of each period.

Article 544. Failure to pay the premium to the deadline conventional or legal, authorizing the insurer to demand delivery of it or termination of insurance compensation for damages.

Demand for raw leaves subsisting insurance.

Instituted the action for rescission, the risks cease to be borne by the insurer and the insured may not claim compensation from a subsequent claim, even offering to pay the premium.

Article 545. The insurer must give exercise the rights under the previous item within a period of three days from the deadline, and not doing it, insurance in force shall be deemed for all purposes, and the insurer may proceed to delivery premium.

Section 546. A period of grace granted for payment of premiums, insurers are obliged to repair the loss occurs before maturity, but if it should occur after, not be obliged to repair it but in the event that any premium paid within the indicated time.

Not being paid, the insurers may use the law gives them the first paragraph of Article 544.

Article 547. Expiring insurance taken out by months or years, the insured should not be any money for months or years that have not begun to run, or you can repeat any portion of the premium has been paid by the month or year that has not run .

Article 548. The deduction of premiums for months or years to come extinguish the division monthly or annual payment, in which case it is presumed that the parties have replaced the original insurance insurance only for a single premium and a number of years.

Article 549. Adjusted insurance between the insurer and the insured or his agent shall deliver to the first second the policy signed within twenty-four hours, counting from the date of adjustment.

If the insurance is held by the intermediate rider, the policy must be signed and delivered to the parties within four days from the conclusion of the contract.

Failure to comply with provisions of the two preceding paragraphs gives the insured the right to claim damages from the insurer or broker you.

Article 550. The insurance contracts in particular the obligation to pay the insured the sum insured or any part thereof, provided that the insured object totally or partially lost, or suffer as a result of a fortuitous event which has taken over.

The insurer's liability in any case exceed the amount insured.

Article 551. If the accident occurred before and continued after the expiration of the term insurance consumare loss or damage to the insured, insurers respond the full value of the loss.

But if it occurred before and will continue after HAVE begun to risks borne by insurers, they will not be responsible for the loss.

Article 552. The insurer is not obligated to indemnify the loss or damage from inherent vice of the thing, a personal event of the insured or a vicarious liability civil law affecting it.

However, the insurer may take upon themselves, by virtue of an express agreement, risks arising from inherent vice of the thing, but it is forbidden to become responsible for personal acts of the insured.

Understand by inherent vice germ destruction or damage to carry things in itself by nature or destination, although they assume the most perfect of its kind quality.

Article 553. Because the payment of the claim, the insurer is subrogated to the insured's rights and actions he has against third parties by reason of the accident.

If no compensation is total, the insured shall retain its rights to charge those responsible for the damages has not indemnified by the insurer.

The insured is responsible to the insurer for all acts or omissions that may harm the performance of the shares transferred by subrogation.

Article 554. The mere fact of paying the claim, which ensures the solvency of the insurer is subrogated to the insured thing all the rights that it confers the first insurance.

Article 555. The thing that is the subject of insurance is subrogated for the amount insured for this effect of exercise on the privileges and mortgages on it.

Article 556. The insured is obliged:

1. ° A sincerely declare all circumstances necessary to identify the insured and appreciate the extent of risks;

2. ° A premium payment in the manner and time agreed upon;

3. ° To use all the care and zeal of a diligent parent to prevent the accident;

4. ° to take all necessary steps to save or recover the insured, or to preserve his remains;

5. ° to notify the insurer within three days of receipt of the notice, the advent of any accident involving their responsibility in the notification by a clear statement of the causes and circumstances of the accident;

6. ° to declare the time required to pay an insurance claim you have made or sent to the secured object;

7. ° To prove the coexistence of all the circumstances necessary to establish the liability of the insurer.

It is responsible for all charges made by the insured to comply with the obligations laid down in points 3. And 4. °.

Article 557. The insurance is terminated:

1. ° For the false or misleading statements or the insured's reticence about those circumstances known to the insurer may withdraw from the contract or to produce any substantial change in their conditions;

2. ° for breach of its obligations;

3. ° Lacking absolute or risk extinction.

If the absence or extinction risk is partial, the insurance is terminated in part.

Article 558. Pronounced the nullity or termination of insurance fraud or fraud of the insured, the insurer may demand payment of the bonus or withhold, without prejudice to the criminal action, but has not run any risk.

Article 559. Declared the bankruptcy of the insurer outstanding risks, the insured may request termination of insurance or require the entrenched competition compliance with the obligations of the bankrupt.

Has the same option the insurer if the insured should occur before the bankruptcy of the premium paid.

If the bankrupt or the bankruptcy administrator accords no bail within three days of notification of the lawsuit, the insurance shall terminate.

Article 560. The mutual insurance stock companies are subject to the rules contained in this paragraph in all matters relating to the fixing of rights and obligations of the company and shareholders in cases of disaster.

§ 3. Special provisions for land insurance

Article 561. Land are mutual insurance or premium.

The participating mutual insurance while the insurance contract and that of society, and although by their nature are civil contracts, subject to commercial law as prescribed in Article 2064 of the Civil Code.

Article 562. Insurance premium land ordinarily have intended to ensure:

1. ° The life span of one or more persons;

2. ° The risk of fire;

3. ° harvest risks pending or completed;

4. ° The risks of transport by land, lakes, rivers and waterways.

Article 563. The abandonment of goods insured is not admissible in insurance land, except in case of agreement of the parties.

Nor is it permissible termination by the mere will of the insured, even paying compensation.

Article 564. If termination was caused by a fortuitous event or force majeure, the insurer is not entitled to claim compensation, unless otherwise stated.

But if it were a fact innocent of the insured, the insurer may seek compensation for damages according to general principles.

The provisions of this article and the above do not apply to certain land transport.

Article 565. The compensation the insurer agrees rule, within the limits of convention, based on the value that the object has secured the time of the accident.

Article 566. In the case referred to in number 4. Of article 522, the insurance will not celebrated, but the insurer and insured have proceeded in ignorance of the loss or salvation of the insured object.

But if any of them have acted with knowledge of the loss or salvation of the thing, competently be liable to indemnify the other, without prejudice to the penalty imposed on him by law.

Knowing both sides of the event that put an end to the risks, the insurance will be for all purposes as a mere wager.

Article 567. Nothing in the final paragraph of Article 556 applies to land insurance, except transport, even if the costs exceed the salvage value of the salvage.

Article 568. The shares resulting from the land safe, except for transportation, prescribed by the lapse of four years.

If the premium is payable regardless of quotas fixed and regular times, the action to collect each fee prescribed in four years from the time it is required.

§ 4. Life Insurance

Article 569. The life of a person can be assured by himself or by a third party who has an interest in current and effective conservation.

In the second case the insured is the third of which gives the insurance benefit and shall pay the premium.

Article 570. The insurance held by a third party may be without notice and consent of the person whose life is insured.

Article 571. Insurance can be temporary or for life.

Missed the appointment time that should last the life insurance is deemed.

Article 572. The risk that the insurer takes upon himself may be the death of the insured within a certain time or under certain circumstances contemplated by the parties, or of prolonging life beyond the time fixed by the convention.

Article 573. In addition to the pronouncements contained in Article 516, the policy should state the age, occupation and health status of the person whose life is assured.

Article 574. Insurance is void if at the time of the contract there is no person whose life is insured, even when the parties ignore death.

Article 575. Life insurance is terminated:

1. ° If you have done to save his life shall lose condemnation by suicide or capital, or if the lose a duel or in another criminal enterprise, or if he is killed by his heirs.

This provision is inapplicable to the case of insurance purchased by a third party.

2. ° If the amount claimed by the insured is author or accomplice of the death of the person whose life has been secured.

Article 576. The mere absence and disappearance of the person whose life is insured, not the insured amount becomes due, unless otherwise specified stakeholders.

But if the presumptive heirs of the deceased has obtained the final possession, may require payment of the amount insured under caution to restore it if it appear absent.

Article 577. The fixing of the amount insured and all accident conditions of the contract are left to the parties.

Article 578. These provisions shall not apply to the tontine, mutual insurance life, or other contracts that require the contribution of a fixed amount.

§ 5. Fire insurance

Article 579. Outside the statements required by Article 516, the policy must state:

1. ° The status of the property insured and the specific designation of their boundaries;

2. ° The destination and use of the property insured;

3. ° The destination and use of adjacent buildings, as these circumstances may influence the risk estimates;

4. ° The places that are placed or stored furniture object of the insurance;

5. ° The duration of insurance.

Article 580. Building insurance does not cover the risk to the owner to compensate the damage caused to the residents of the building fire insurance.

Article 581. The insured against the risk of neighbor or the risks locative can not claim the compensation agreed, while not display a final sentence in which he has been held responsible for the communication of fire in the first case, the fire at the building secured in the second.

Article 582. Are borne by the insurer:

1.: All the losses and damages caused by the direct action of fire, but this accident comes from mild to very slight fault of the insured, or made outside of which it would otherwise be liable;

2. ° The losses and damages that are an immediate consequence of fire, such as caused by heat, smoke or steam, the means to extinguish or contain the fire, the furniture removal and demolition order executed under competent authority.

Article 583. Insurer's liability ceases if the building insured after the contract was destined to a use which increases the risk of fire, so that there is room to assume that the insurer would not have insured, or would have insured under various conditions.

The same rule applies to insurance of movable property, since the insured remove them from where they were held while the insurance and put in another.

Article 584. Cesa also the responsibility of the insurer, when the fire comes from the insured to have violated the laws or police regulations that aim to prevent such an accident.

Article 585. If the amount insured consist in a fee, it is understood that this refers to the value that has the subject-matter insured at the time of the accident.

Article 586. Unless otherwise agreed, the terms real or household furniture, not otherwise specified, will be taken in the sense that given the Article 574 of the Civil Code.

§ 6. Insurance against the risks they are exposed to products of agriculture

Article 587. Regardless of the statements in section 516, the policy must state:

1. ° The situation, place and boundaries of land, vineyards, meadows or artificial trees whose products are insured;

2. ° The type of crops or plantations intended to land, and if done or made;

3. ° The location of the deposit, if the insurance is already included fruits;

4. ° The average value of the benefits secured.

Article 588. The insurance may be hired by one or more years.

No time to be determined in the policy, means that insurance should only last year the corresponding rural insured crop.

Article 589. The insurer is liable for the loss or damage to the fruit, but not of the vines, trees, crops or plantations, are to produce a given amount.

Article 590. In case of loss the insurer will pay liquidated damages as prescribed in Article 565.

Expert in the regulation of the loss is taken into account to calculate and determine the compensation, if the time served the disaster has occurred or not it is possible to make a second sowing or planting, or if the state of the fruits can be expected any crop.

§ 7. Land transport safety

Article 591. In addition to the pronouncements set forth in Article 516, the insurance policy must contain:

1. ° The name and address of the driver;

2. ° The indication of the point where the effects are to be received for loading and the place where delivery is to be made;

3. ° The trip which they say, and the route to be followed by porters;

4. ° The way to be made transport.

Article 592. The driver of effects on land, lakes, rivers and waterways can secure on their own.

The policy, in this case, be extended under the provisions of the preceding article.

Article 593. The risks begin to run and concluded the insurer at such times as designated in Article 200.

Article 594. If the effects are designated to be carried in turn by land or water, the insurer is not liable for damages suffered, provided that driving without the need is verified by way of an unusual or unaccustomed way.

Article 595. Determined in the consignment note and the insurance duration of the voyage, the insurer is not liable for damages which they occur after the time appointed.

Article 596. If in the course of the trip agreed the effects were downloaded, stored and re-loaded on the backs of other animals, or other carts or other vehicles or vessels, the risks continue to account of the insurer.

Except when it is expressly provided that the transport will take place on a particular ship, but even then the insurer liable for the risks of transfer executed to float the ship.

Article 597. The insurer is liable for damage caused by the fault or misconduct of those responsible for the receipt, carriage or delivery of the goods insured.

Article 598. Happening except some damage insurance, the insurer will charge justified.

Article 599. Insurance terminated in whole or in part without the fault of the insured, the insurer will pay compensation by way of a half percent of insured value.

Article 600. The insured can relinquish the effects damaged in favor of the insurer within one month from the day that hath news of the accident.

Not verified within the specified time, you can not do it later.

Article 601. In cases not covered by this paragraph shall apply the provisions contained in the title of marine insurance.