LAW NO. 20,667 REGULATES THE INSURANCE CONTRACT Having present that the H. National Congress has given its approval to the following bill initiated in a motion by former Deputies Juan Bustos, Marcelo Forni, Renan Fuentealba and Eduardo Saffirio and the members of the Chamber of Deputies, Jorge Burgos, Alberto Cardemil, Edmundo Eluchans, Sergio Ojeda, Patricio Vallespin, and Mario Venegas. Bill: "Article 1.-Replace Title VIII of Book II of the Trade Code by the following:" TITLE VIII Of the insurance contract Section First. Rules common to all types of insurance Art. 512. Insurance contract. The insurance contract transfers to the insurer one or more risks in exchange for the payment of a premium, the latter being obliged to indemnify the damage suffered by the insured person, or to satisfy a capital, income or other benefits agreed upon. The risks may relate to certain goods, to the right to require certain benefits, to the patrimony as a whole and to the life, health and physical or intellectual integrity of an individual. Not only death, but also survival are risks that are likely to be covered by insurance. The rules of this Title govern the whole of private insurance. They are not applicable to social insurance, to health contracts regulated by the decree with force of law N ° 1, 2006, of the Ministry of Health, which fixes the recast, coordinated and systematized text of Decree Law No 2,763, 1979, and of the laws No 18.933 and No 18.469, and insurance against accidents at work and occupational diseases. Article 513. Definitions. For the purposes of insurance legislation, the following definitions shall apply: (a) insured: the person to whom the risk is transferred to the insurer. b) Insurers: the one who takes the risk of his/her account. (c) Beneficial: who, even if not insured, is entitled to compensation in the event of a disaster. (d) Certificate of cover or final certificate: a document that gives an account of insurance issued subject to the terms of a collective or floating insurance policy. (e) Provisional Certificate: a document that gives an account of the terms of an insurance contract whose conclusion is subject to the condition that the insured person complies with the stipulated requirements within a period of time. (f) Contracting, contracting or taker: the person who holds the insurance with the insurer and who, in general, falls under the obligations and charges of the contract. (g) Quote: the written offer of the insurer to conclude an insurance contract. (h) Deductible: the stipulation by which the insurer and the insured agree that the latter shall bear any event up to the amount of the loss that has been agreed. (i) Dejation: the transfer of the subject-matter of the insurance in favour of the insurer, in the event of a total loss. (j) Endbear: the written modification of the policy, unless it appears that the term has been used in its common sense. (k) Franchise: the stipulation by which the insurer and the insured agree that the person shall bear all the damage when the damage exceeds the amount agreed upon. (l) Guarantees: the requirements for circumscribing or reducing the risk, stipulated in an insurance contract as conditions to be fulfilled for the purpose of the compensation in the event of a disaster. (m) Infrassured or insufficient insurance: that in which the insured quantity is less than the value of the insured object at the time of the accident. (n) insurable interest: the insured person in the non-performing of the risk, without prejudice to the provisions of Article 589 relating to the insurance of persons. n) Total loss assimilated or constructive: the reasonable abandonment of the object insured, either because the actual total loss seems unavoidable or because it is not possible to avoid it without incurring expenses that exceed three-quarters of its value after the disbursement. (o) Actual or actual total loss: the one that completely destroys or irreversibly deprives of the well-insured, or in such a way damages it that makes it permanently lose the aptitude for the purpose to which it was destined. It shall constitute total loss of the insured property which causes damage of at least three-quarters of its value. (p) Policy: the supporting document for insurance. (q) Proposal: the written offer to contract the insurance, made to the insurer by the contractor, the insured person or by a third party to his name. (r) Floating insurance policy: the regulatory contract which provides, in general terms, with agreed stipulations for specific insurance relations which are to be subject to further formalisation. (s) Prima: the remuneration or price of the insurance. (t) Risk: the eventuality of an event that causes the insured or beneficiary to be lost or a need to be estimated in money. (u) First loss insurance: that in which it is stipulated that, even if there is an infringement, the insured person shall not bear any part of the loss, except in the case where the loss exceeds the sum insured. (v) "Safe" distance: the one which has been agreed between the parties by means of any system of digital or electronic transmission and registration of the written or verbal word. (w) Collective insurance: those who, by means of a single policy, cover against the same risks, to a particular or determinable group of persons. (x) Casualty: the occurrence of the risk or harmful event contemplated in the contract. (y) Excess insurance: the amount in which the insured quantity exceeds the value of the insured object at the time of the claim. Article 514. Proposal. The proposal to conclude an insurance contract must express the coverage, background and circumstances necessary to assess the extent of the risks. For these purposes, the insurer shall provide the taker, in writing, with all information relating to the content of the contract to be concluded. This must contain at least the type of insurance in question, the risks covered and the exclusions; the amount insured, how to determine it and the deductibles; the premium or method for its calculation; the period of duration of the contract, as well as the explicit start date and end of coverage. Article 515 Conclusion and proof of the insurance contract. The insurance contract is consensual. The existence and stipulations of the contract may be credited by all means of proof which provide for the laws, provided there is a principle of proof in writing that emanates from any document that consists of telex, fax, mail messages electronic and, in general, any system of digital or electronic transmission and registration of the written or verbal word. The insurer shall not be admitted to any evidence against the tenor of the policy which it has issued after the perfection of the contract. Where the insurance consists of a definitive cover certificate, it shall be understood that the terms and conditions of the respective collective or floating insurance policy are part of this. Article 516. Ways to hire insurance. Insurance for an employed person. Insurance may be hired on its own, or by a third party under a special or general power, and even without your knowledge and authorization. It may also be contracted on behalf of an indeterminate but determinable third party, as stipulated by the parties, by individualizing the policyholder under the formula "to whom it corresponds". It is understood that the insurance corresponds to the one that has contracted it, since the policy does not express that it is for account or in favor of a third party. In insurance for an employed person, if the policyholder is in possession of the policy, he has the right to collect the compensation, but the insurer has the right to require the taker to accredit the insured's consent in advance or to demonstrate which is the work of the latter or because of an obligation or legal interest. Article 517. Collective insurance procurement. There is collective insurance procurement in cases where a single policy covers a particular or certain group of persons linked to or by the taker. In this case, call yourself a taker or a contractor, who is awarded the contract by the insured group. Through the taker, the insurer must provide each of the insured persons who join the collective insurance contract, a copy of the policy, or at least one certificate that accredits the coverage. In the latter case, both the insurer and the policyholder and the insurance broker must keep a copy of the policy at the disposal of the persons concerned. The insurer must also notify the policyholders through the taker, all the insurance changes, which can only be made and governed, on the basis of the following renewal of the contract. Non-informed modifications shall be inapplicable to the insured person. In such an event, the insured person may waive the contract by written communication to the insurer within 10 days of receipt of the notification, in which case the premium paid from the insurance company must be restored. modification. If the waiver notice has been filed with the taker or the intermediary, his or her knowledge shall be presumed by the insurer to count on the date of its submission. The taker is responsible for the damages caused by his action in the collective policies in which he intervenes, without prejudice to the insurer's responsibility for the efforts he has entrusted. The insurer may not object to the policyholder's errors, omissions or deficiencies. In this type of insurance contract, the compensation of claims is awarded to the insured person concerned by them, or to the beneficiary, where appropriate. Article 518. Mentions of the policy. The insurance policy must express, at least: 1. The individualization of the insurer, the insured person and the contractor if it is not the same insured. If the beneficiary has been designated, his or her (ii) the provision of the insured subject; (2) the security interest; (4) The risks to the insurer; 5. The time when the principal and the risk to the insurer end; 6. the insured quantity, or the method of determining it; 7. The value of the insured property, if it has been agreed; 8. The insurance premium, and the time, place and form of its payment; 9. The date on which it extends and the material or electronic signature of the insurer; and 10. The signature of the insured in those policies that require it according to the law. They are presumed to act on behalf of the insurer, who sign the policies or documents that modify them, and that their signatures are authentic. Article 519. Delivery of the policy. The insurer must deliver the policy, or the cover certificate, if any, to the insurance contractor or the broker who has brokered it, within five working days from the perfection of the contract. The broker must deliver the policy to the insured person within five working days of receipt. Failure to comply with the policy delivery obligation will entitle the insured to claim damages from the insurer, or the broker in his case. Art. 520. Insurable interest. The insured person must have an insurable interest, current or future, in respect of the subject of insurance. In any case, it is necessary to have such an interest at the time of the disaster. If the interest does not come into being, or shall cease during the term of the insurance, the contract shall terminate and the insured shall be entitled to the refund of the part of the premium not earned by the insurer corresponding to the time not taken. Article 521. Essential requirements of the insurance contract. Nullity. They are essential requirements of the insurance contract, the insured risk, the premium stipulation and the insurer's conditional obligation to indemnify. The absence of one or more of these elements results in the absolute nullity of the contract. They are absolutely void too, the contracts that fall on objects of illicit trade and on those not exposed to the risk insured or who have already run it. Article 522. Assignment of the policy. The insurance policy can be either nominative or order. The assignment of the nominee policy or the rights that it emanates, requires the acceptance of the insurer. The assignment of the policy to the order can be done by simple endorsement. However, the credit of the insured person for the compensation of an accident which has already occurred may be transferred in accordance with the general rules on the transfer of appropriations. The insurer may oppose any exceptions it has against the insured person or the beneficiary. The assignment of the policy transfers to the transferee all the rights that for the insured emanate from the contract and the law. Article 523. Validity of the coverage. The terms of the term of the contract will be fixed in the policy. In the absence of a stipulation on the commencement of the coverage, the risks shall be borne by the insurer as soon as the contract is perfected. In the absence of a stipulation on their termination, it shall be for the competent court to determine up to when the risks shall be borne by the insurer, taking into account the nature of the insurance, the terms of the contract, the uses and customs and other relevant circumstances. Article 524. Obligations of the insured. The insured will be obliged to: 1 sincerely declare all the circumstances requested by the insurer to identify the insured thing and appreciate the extent of the risks; 2 ° Report, at the request of the insurer, on the existence of other insurances that cover the same object; 3 ° Pay the premium in the agreed form and time; 4 ° Employ the care and zeal of a diligent father of family to prevent the sinister; 5 ° Not to aggravate the risk and to make news to the insurer on the circumstances which come to their attention and which fulfil the characteristics referred to in Article 526; 6 Case of disaster, take all the necessary arrangements to save the insured thing or to preserve its remains; 7 ° Notify the insurer, as soon as possible once taken knowledge, of the occurrence of any event that may constitute Or it constitutes a sinister, and 8 ° To credit the occurrence of the sinister denounced, and to declare faithfully and without reticence, its circumstances and consequences. The insurer must reimburse the costs incurred by the insured person in order to meet the obligations expressed in the number 6 ° and, in the event of an imminent disaster, also the number 4. The reimbursement may not exceed the sum insured. If the policyholder and the insured person are different persons, it is up to the taker to comply with the obligations of the contract, except those which by its nature must be fulfilled by the insured person. The obligations of the taker may be fulfilled by the insured. Article 525. Statement on the state of risk. In order to provide the declaration referred to in Article 1 (1), it shall be sufficient for the contractor to report to the insurer on the facts or circumstances he or she knows and serve to identify the matter. insured and appreciate the extent of the risk. If the insurance contract is agreed without the insurer applying for a statement on the state of the risk, the insurer may not claim the errors, reticence or inaccuracies of the contractor, as well as those facts or circumstances which are not included in such a request. If the claim has not occurred, and the contractor has incurred inexcusably in errors, reticence or inaccuracy of the risk insured in the information requested by the insurer according to the number 1 of the previous article, the insurer may terminate the contract. If the errors, reservations or inaccuracies about the contractor do not take any of these characteristics, the insurer may propose a modification to the terms of the contract, in order to adjust the premium or the conditions of the coverage to the uninformed circumstances. If the insured person rejects the insurer's proposal or does not give him a reply within ten days from the date of dispatch of the insurer, the latter may terminate the contract. In the latter case, the termination shall take place at the expiration of the thirty-day period from the date of dispatch of the respective communication. If the claim has occurred, the insurer shall be exempt from its obligation to pay the compensation if it comes from a risk that would have resulted in the termination of the contract in accordance with the previous subparagraph and, if not, it shall be entitled to reduce the compensation in proportion to the difference between the agreed premium and the one agreed in the case of knowing the true state of the risk. These penalties shall not apply if the insurer, prior to the conclusion of the contract, has known the errors, reticence or inaccuracies of the declaration or due to know them; or if after its conclusion, it is prepared to be subsated or accepted. express or tacitly. Article 526. Aggravation of insured risks. The insured person, or the contractor, shall inform the insurer of the facts or circumstances which substantially aggravate the declared risk, and shall arise after the conclusion of the contract, within five days of have known them, provided that by their nature, they have not been able to be otherwise known to the insurer. It is presumed that the insured person knows the risk aggravations that come from events that occurred with his direct participation. If the claim has not been made, the insurer shall, within 30 days of the date on which it has become aware of the aggravation of the risks, inform the insured person of his decision to terminate the contract or to propose a modification to the terms of the same to match the premium or the conditions of the policy coverage. If the insured person rejects the insurer's proposal or does not give him a reply within ten days from the date of dispatch of the insurer, the latter may terminate the contract. In the latter case, the termination shall take place at the expiration of the thirty-day period from the date of dispatch of the respective communication. If the claim has occurred without the insured, or the contracting party where appropriate, having made the declaration on the aggravation of the risks referred to in the first subparagraph, the insurer shall be exempt from its obligation to pay the compensation for insurance coverage affected by the aggravation. However, where the risk aggravation would have led the insurer to conclude the contract on a more onerous basis for the insured, the compensation shall be reduced in proportion to the difference between the agreed premium and the the true risk entity would have been known to have been known. Such penalties shall not apply if the insurer, by the nature of the risks, is due to meet them and has accepted them expressly or tacitly. Except in the case of a painful aggravation of the risks, in all situations where, in accordance with the preceding points, there is a termination of the contract, the insurer shall return to the insured the proportion of the premium corresponding to the period in which, as a result, the risks are released. Except in the form of personal accident insurance, the rules on the aggravation of risks shall not apply in the insurance of persons. Article 527. Of the premium. The insurer earns the premium from the moment the risks begin to run on its own, and it shall be entitled to receive or retain its entire account if it is free of the risk. (a) the amount of the total loss or the end of the period in accordance with Article 523. If the term of the coverage is agreed for a specified period, the premium shall be payable in proportion to the elapsed time. The premium can consist of a lot of money, in the delivery of a thing or in an estimable fact in money. Unless otherwise agreed, the payment of the premium shall be made upon the delivery of the policy, the cover certificate or the endorsement, as appropriate, and must be made at the address of the insurer or its representatives, agents or deputies for recovery. Article 528. I do not pay the premium. The non-payment of the premium shall result in the termination of the contract at the expiry of the 15-day period from the date of dispatch of the communication which, for that purpose, directs the insurer to the insured person and shall entitle him to require that be paid the premium payable up to the date of termination and the costs of formalisation of the contract. The termination, the liability of the insurer for subsequent claims shall cease in full, without any need for a judicial declaration. Article 529. Obligations of the insurer. In addition to the one referred to in Article 519, the insurer contracts the following obligations: (1) Where the insurance is contracted directly, without the intermediary of an insurance broker: to provide advice to the insured, to provide the insurance cover more convenient to their needs and interests, to illustrate it on the terms of the contract and to assist it for the duration, modification and renewal of the contract and at the time of the accident. Where the insurance is contracted in this way, the insurer shall be liable for the infringements, errors and omissions committed and for the damage caused to the insured. 2) Compensation for the claim covered by the policy. Art. 530. Risks assumed by the insurer. The insurer responds to the risks described in the policy, with the exception of situations expressly excluded by it. In the absence of a stipulation, the insurer responds to all the risks which, by its nature, correspond, except those excluded by law. Article 531. Sinister. Presumption of coverage and exceptions. The claim is presumed to have occurred because of an event that makes the insurer responsible. The insurer can prove that the claim has been caused by a fact that it does not constitute in charge of its consequences, according to the contract or the law. Article 532. Period of the sinister. If the claim is initiated during the life of the insurance and will continue after the expiry, the insurer will respond to the full amount of damages. But if I start earlier and continue after the risks have started to run on behalf of the insurer, the insurer will not be responsible for the claim. Article 533. Plurality of causes of a disaster. If the claim comes from various causes, the insurer will be liable for the loss if any of the concurrent causes corresponds to a risk covered by the policy. Article 534. Subrogation. For the payment of the compensation, the insurer is subrogated in the rights and actions that the insured has against third parties in reason of the claim. The insurer shall not be entitled to subrogation against the cause of the claim which is the spouse or the consanguine relative of the insured person in the entire straight line and up to the second degree inclusive of the collateral line, and by all those persons that the insured must respond civilly. However, the subrogation will proceed if the liability comes from dolo or is covered by insurance, but only for the amount that it has covered. The insured person shall be liable for his acts or omissions which may prejudice the exercise of the shares in which the insurer has subrogated. The insured will retain their rights to sue those responsible for the disaster. In the event of an insurer's concurrence and insured against third parties, the recovered or recovered shall be divided between the two in proportion to their respective interest. Article 535. Cases of dolo and serious guilt. The insurer is not obliged to indemnify the claim arising out of him or her or the policyholder's serious fault, unless otherwise agreed for the cases of serious fault. Article 536. Extinction and reduction of risks. Insurance ends if the risk is extinguished after the contract is concluded. If the risk is reduced, the premium shall be adjusted to the risk that the insurer actually takes from the moment that the insurer becomes aware of that risk. This rule will not apply to people's insurance, except in the form of personal accidents. Article 537. Early termination. The parties may agree that the insurer may terminate the contract in advance, with the expression of the reasons justifying it, with the exception of legal exceptions. In any event, the termination of the contract shall be due to the expiration of the thirty-day period from the date of dispatch of the respective communication. The insured person may terminate the contract in advance, except for legal exceptions, by contacting the insurer. The premium shall be reduced in proportion to the time limit, but in the event of a loss of total loss it shall be fully understood. Article 538. Retracting an insurance contract held at a distance. In the case of insurance contracts concluded at a distance, the contractor or insured person shall have the right to withdraw within ten days from the date of receipt of the policy, without any expression of cause or charge, having the right to return of the premium you paid. This right may not be exercised if a claim has been verified, or in the case of insurance contracts whose effects are terminated before the period laid down in the preceding paragraph. Article 539. Other causes of ineffectiveness of the contract. The insurance contract is void if the insured, knowingly, provides the insurer with substantially false information by providing the statement referred to in Article 524, and is resolved if it incurs such conduct by claiming the compensation for a claim. In such cases, the insurer may withhold the premium or demand its payment and charge the expenses it has demanded to credit him, even if there is no risk, without prejudice to the criminal action. Art. 540. Situations in case of bankruptcy. If the insurer is bankrupt while the risks are pending, the insured person may terminate the contract in advance, in which case he shall be entitled to the proportional refund of the premium, or to require that the contest takes the form of compliance with the obligations of the failed. The insurer has the same option if the insured's bankruptcy occurs before the total premium is paid. If the contest or the receiver does not grant bail within five days of the respective court application, the insurance shall terminate. In the case of bankruptcy of the insurer, the claims of insured persons for claims which have occurred before the bankruptcy shall be given the preference of Article 2472 of the Civil Code. However, the reinsurance payments shall benefit the insured, whose claims for claims shall be preferred to any other person who is exercising against the insurer, without prejudice to the costs of administering the insurance. bankruptcy or liquidation, if any. Article 541. Prescription. The shares arising out of the insurance contract shall be prescribed within four years from the date on which the respective obligation has been made. Outside of other legal grounds, the prescription that runs against the insured is interrupted by the complaint of the claim, and the new period will govern from the moment the insurer informs him of its decision in this regard. In life insurance the limitation period for the beneficiary will be four years and will be counted since he knows the existence of his right, but in no case will it exceed ten years since the disaster. The limitation period may not be abbreviated in any form of expiry or preclusion, and in the insurance referred to in Article 570, that period shall not be less than that of the action which the third party has against the insured person. Article 542. Mandatory nature of the rules. The provisions governing the insurance contract are of an imperative nature, unless otherwise provided for in those provisions. However, the contractual stipulations which are most beneficial to the insured or the beneficiary shall be deemed to be valid. Except for the foregoing, the insurance of damages individually contracted, in which both the insured and the beneficiary, are legal persons and the amount of the annual premium that is appropriate is greater than 200 units of promotion, and the insurance of hull and air and sea transport. Article 543. Conflict resolution. Any difficulty arising between the insured, the contractor or the beneficiary, as appropriate, and the insurer, in relation to the validity or ineffectiveness of the insurance contract, or to the interpretation or application of its general or particular conditions, their performance or non-compliance, or the origin or amount of compensation claimed under it, shall be settled by an arbitration arbitrator, appointed by common agreement by the parties when the dispute. If the persons concerned do not agree on the person of the arbitrator, the arbitrator shall be appointed by the ordinary court and, in such a case, the arbitrator shall have the powers of the arbitrator in respect of the proceedings, and shall give judgment in accordance with the law. In no case may the person of the arbitrator be appointed in the insurance contract in advance. In disputes between the insured person and the insurer arising out of a claim whose amount is less than 10 The insured person may choose to exercise his or her action in the face of ordinary justice. The arbitral tribunal or ordinary court to which it is responsible shall have the following powers: 1 ° Admit, at the request of a party, in addition to the means of proof established in the Code of Civil Procedure, any other kind of proof. 2 ° Decretar of office, in any state of the judgment, the evidentiary measures that it considers appropriate, with summons of the parties. 3. To call on the parties to their presence to recognize documents or instruments, justify their challenges, being able to resolve the matter, without this implying prejudgment on the main issue at issue. 4 ° To appreciate the test according to the norms of the healthy critique, and to record in the judgment the foundations of that appreciation. It shall be the court competent to hear the reasons for the insurance contract, that of the domicile of the beneficiary. Insurance companies shall forward to the Superintendency of Securities and Insurance, an authorized copy of the final judgments delivered on matters of this law, to the proceedings in which they have been a party, which will be made available to the public. Article 544. Classification of insurance. Insurance is about damage or people. The damage, they are real or heritage. Section 2. Of the insurance of damages & 1. General rules Art. 545. Object. The insurance of this species is intended to compensate for the damage suffered by the insured person and may be borne by him or her on matters of body, property or property. Art. 546. Insurable interest. Any person who has an interest, present or future, lawful and estimable in money, can conclude an insurance contract against damages. If you have no interest in the event of an accident, the insured person will not be able to claim compensation, but in any case you will have the right granted to you under the second paragraph of Article 520. Article 547. Concurrency of insurable interests. Different insurable interests can be used on the same subject matter, which may be covered simultaneously, alternatively or successively up to the value of each interest. Article 548. Insurance of universalities. Industrial, mining, agricultural, commercial, land, sea and air cargoes and, in general, the universalities or sets of goods which, by their location or other circumstance, are the subject of the same insurance, may ensure with or without specific designation of the goods containing or consisting of them. The furniture that is the menaje of a house can also be insured in the same way, except those with a great price, such as the alhajas, high value paintings, objects of art or other analogs, which will be insured with specific designation. In one case, the insured person must identify the insured objects and justify their existence and value at the time of the accident. Article 549. Vice-versa. The insurer shall not be liable for loss or damage arising from the insured thing's own vice, unless otherwise stipulated. It is understood by vice himself the germ of destruction or deterioration that carry in itself things by their own nature or destiny, even if they are the most perfect quality in their species. Art. 550. Principle of compensation. In respect of the insured, the damage insurance is a contract of mere compensation and can never constitute for him the opportunity of a profit or enrichment. Article 551. Loss-making insurance. In order for the insured's loss to be covered, it must be expressly agreed. Article 552. Sum insured and limit of compensation. The sum insured is the maximum limit of the compensation that the insurer is obliged to pay in the event of a disaster and does not represent an assessment of the insured property. In actual insurance, the compensation shall not exceed the value of the good or the interest insured at the time of the event, even if the insurer has been responsible for a sum that exceeds it. If the insured quantity consists of a quota, it shall be understood to refer to the value of the insured object at the time of the claim. In the case of property insurance, the compensation may not exceed, within the limits of the convention, the loss of the assets of the insured person as a result of the accident. Article 553. Proportional rule. If at the time of the claim the sum insured is less than the value of the good, the insurer shall indemnify the damage in proportion between the amount secured and the amount which is not. However, the parties may agree that the proportional rule provided for in the preceding subparagraph shall not apply, in which case the insured person shall not bear any part of the damage if a claim occurs, unless the claim exceeds the sum insured. Article 554. Valuation of the insured thing. In real insurance the value of the insured things can be established by an expressly agreed estimate at the time of the contract. It does not constitute an agreed assessment of the single enunciation of the sum insured, nor the declaration relating to the value of the goods unilaterally made by the insured person in the proposal or in other documents. In the absence of an agreed assessment, the determination of compensation damage shall be made on the basis of such value, without application of Article 552. The agreed value may be contested only by the parties where the stipulation is subject to a vice of consent. Established the origin of the challenge, the sum assured and the premium will be reduced to concurrency of the true value of the sure thing. Art. 555. Insurance at replacement value. In the case of insurance, the parties may stipulate that the payment of the compensation shall be made on the basis of the replacement or replacement value of the insured property, without exceeding the limit of the sum insured. In the case of goods, they may agree that the compensation corresponds to their selling price on the market. Article 556. Effects of the plurality of insurance. Where more than one insurance covering the same subject matter, interest and risk has been contracted, the insured person may claim to any of the insurers the payment of the claim, according to the respective contract, and to any of the other insurers, the balance covered. All compensation received by the insured person may not exceed the value of the insured object. If the insured person has received more than he has, they shall have the right to repeat against those insurers who have paid the excess. They shall also be entitled to damages if they are in bad faith of the insured person. When reporting the claim, the insured person must inform all the insurers with whom he/she has contracted, the other insurance companies that cover it. The insurer that will pay the claim, has the right to repeat against the others the quota that corresponds to them in the compensation, according to the amount they cover the respective contracts. Article 557. Coinsurance. There is co-assurance when, with the consent of the insured, two or more insurers agree to a certain risk. In such a case, each insurer is obliged to pay the compensation in proportion to their respective share of participation. If a single policy is issued, it shall be presumed that the co-insurer issuing the policy is the representative of the others for all the purposes of the contract. Article 558. Overinsurance. If the sum insured exceeds the value of the insured person, either party may require its reduction, as well as that of the premium, except where such value has been agreed in accordance with Article 554. If a claim occurs in such circumstances, the compensation shall cover the damage incurred, in accordance with the effective value of the property. If the person's insurance comes from bad faith, the contract shall be void, notwithstanding which the insurer shall be entitled to the penalty for the penalty, without prejudice to the criminal action to which it has taken place. Article 559. Transmission of insurance. If the property of the insured thing is passed on by universal or singular title, the insurance shall take advantage of the cause of the event from the moment the risks correspond to it, unless the insurance has been consented to by the insurer in consideration of the person of the deceased. If the insurance is terminated for this reason, the provisions of the second paragraph of Article 520 shall apply. Art. 560. Transfer of insurance. If the purpose of the insurance or the insured interest is transferred, the full insurance shall cease at the end of the 15-day period, counted from the transfer, unless the insurer accepts that it continues on behalf of the acquirer or the policy is to order. However, if the insured person retains any interest in the subject matter of the insurance, he will continue in his favour to the extent of his interest. Article 561. Loss of the assured thing. The loss or destruction of the insured thing or on which the insurable interest falls, caused by a cause not covered by the insurance contract, will result in its termination and shall impose upon the insurer the obligation to return the premium in accordance with the set out in the second paragraph of Article 520. If the loss or destruction is partial, the amount secured and the premium shall be reduced in the appropriate proportion. Article 562. Insured persons required to keep accounts. If insured persons are legally obliged to keep accounts, they must certify their stocks with their inventories, books and accounting records, without prejudice to the merit of other evidence which the parties may render. Article 563. Way to compensate. The insurer must indemnify the claim in money, unless it has been stipulated that it can do so by repositioning or repairing the and the thing secured. Article 564. Dejation. The insured person will not be able to leave the insured things, unless otherwise agreed. Article 565. Exercise of rights of third parties on compensation. The matter of insurance will be subrogated by the amount secured for the effect of exercising on this the privileges and mortgages constituted on that. To this end, the respective creditors must notify the insurer of the existence of their privileges or mortgages. The same rules shall apply where the insured thing has been the subject of a precautionary measure, however, or it affects the legal right of retention. & 2. Fire insurance Art. 566. Concept. For the fire insurance, the insurer is obliged to indemnify the material damages suffered by the objects secured by the direct action of the fire and those that are an immediate consequence of the fire, like those caused by the heat, the smoke, the steam or the means used to extinguish or contain it; and the demolitions which are necessary or ordered by the competent authority. Additional insurance to protect the insured against other risks may also be contracted, such as an extension or extension to fire coverage. Article 567. Content of the policy. In addition to the enunciations required by Article 518, the policy shall express the location, destination and use of the insured property, and of the adjacent buildings, as soon as these circumstances can influence the estimation of the risks. The same particulars shall contain the policy in respect of the buildings in which the movable property is placed or stored, when the insurance is over the latter. & 3. Of the insurance of theft, theft and other subtractions Art. 568. Damages insurable by this type of insurance. The damages caused by the subtraction of things may be secured, by means of the commission of the crimes or other unlawful conduct that the policy points out. Damage resulting from the destruction or deterioration of the insured object or the place where it is located may also be covered by this insurance, provided that they have been caused during the execution of the event. Article 569. Loss of the right to compensation. If the insured risk consists of a crime, the insurer may repeat the compensation paid if it is declared judicially that there was no such crime. & 4. Insurance against civil liability Art. 570. Concept. For the insurance of civil liability, the insurer is obliged to indemnify the damages caused to third parties, of which the insured is civilly responsible, for a fact and in the terms previewed in the policy. In the case of liability insurance, the insurer shall pay the compensation to the injured third party, by virtue of an enforceable judgment, or of a judicial or extrajudicial transaction held by the insured person with his consent. Article 571. Notification. The insured person must give reasonable notice to the insurer, of any news he receives, either of the intention of the third party concerned or his successors in title to claim compensation, or of the threat to initiate action against him; of the notifications The Court of Justice of the European Court of Justice of the European Court of Justice of the European Union Article 572. Extension of coverage. Unless they are covered by special coverage, the insured amount includes both the damages and damages caused to third parties, as well as the costs and costs of the process that these or their successors have promoted against the insured. Unless otherwise agreed, the policy does not cover the amount of the funds to be paid by the insured person, or the fines or penalties to which he or she is sentenced. Article 573. Defense of the insured. The insurer has the right to assume the judicial defense of the insured against the claim of the third party. If it is assumed, it shall have the power to appoint the lawyer responsible for exercising it, and the insured person shall be obliged to entrust his defence to the insurer. The insured person shall provide the insurer and the insurer with all the necessary information and cooperation. Notwithstanding the foregoing, where the person who claims to be insured with the same insurer or another conflict of interest is also insured, the latter shall immediately inform the insured person of the existence of such circumstances, without prejudice to any such circumstances. The Court of the European Court of the European Court of In such cases, and also in the case of criminal matters, the insured person may always choose between maintaining the judicial defence in charge of the insurer or entrusting his own defence to another person. In the latter case, the insurer will respond to the expenses of judicial defense up to the amount agreed upon in the policy. Article 574. Transaction. The insured person is prohibited from accepting the contrary claim or from judicial or out of court with the third party concerned, without prior acceptance of the insurer. Failure to comply with this obligation exempts the insurer from the obligation to compensate. It is not a breach of the fact that the insured person, in the declarations he makes, recognises the facts of his liability. & 5. Of the land transport insurance Art. 575. Concept and extent of coverage. By land transport insurance, the insurer is obliged to indemnify the material damages suffered by the goods and the means used to pack them, during their loading, unloading or driving by land. Unless otherwise agreed, the insurance cover shall include the temporary deposit of the goods and the immobilisation of the vehicle or its change during the journey, where such events are due to the circumstances of the transport and have not been caused by some of the events excluded by the policy. Article 576. Forms and validity of coverage. Land transport insurance can be contracted for travel or for a given time. Unless otherwise agreed, the insurance starts from the delivery of the goods to the carrier and ends when they are delivered to the consignee at the point of destination. Unless the insurance is on a trip, the delivery to the consignee must be made within the time limit provided for in the policy. Article 577. Extra rules. In the cases not provided for in this paragraph, the provisions contained in Title VII of Book III of this Code, "Of Maritime Insurance" shall apply. & 6. Profit loss insurance Art. 578. Concept and scope. For the insurance of loss of profits, the insurer is obliged to indemnify the insured person the decrease of income and profits that it would have reached in the activity described in the policy, of not having produced the sinister one. The insurer may, in addition, cover the general costs to be incurred by the insured person when the establishment is totally or partially paralyzed as a result of the disaster and the extraordinary expenses incurred for the purpose to resume activities. & 7. For credit insurance Art. 579. Concept. By credit insurance, the insurer is obliged to indemnify the insured person for any losses that he or she experiences for the non-compliance with an obligation of money. Art. 580. Provenance of the claim for compensation. There shall be the payment of insurance: (a) Where the debtor has been declared bankrupt by a firm court decision. (b) When you have concluded with your creditors, agreements governed by the Law on Bankruptcy that grant you donations. (c) When the debtor has been executed, it is established that the debtor does not have sufficient assets to settle the debt or that, because of his concealment, the prosecution of the trial is impossible. (d) If the insured and the insurer agree that the credit is non-performing. (e) In other cases to be agreed by the parties. Article 581. Costs of collection. The parties may agree that, in addition to the amount of the unpaid debt, the sum insured shall also cover the costs incurred in the recovery efforts and any other expenses. & 8. Insurance for the use of Art. 582. Concept. The insurer is obliged to indemnify the insured person for the property damage suffered in the event of a breach by the policyholder or established, of his legal or contractual obligations. Any payment made by the insurer must be reimbursed by the policyholder. The exceptions or defences which the policyholder opposes to the insured, claiming that there has been no breach of the obligations guaranteed by the policy, shall not prevent the insurer from paying the compensation requested. Article 583. Obligations of the insured. As soon as the policyholder incurs an action or omission which may result in an obligation to be covered by the insurer, the insured person must take all appropriate measures to prevent that obligation from becoming more burdensome. and to safeguard their right to reimbursement, in particular, to bring the relevant legal proceedings. Failure to comply with these obligations shall, according to their seriousness, result in the reduction of the compensation or the termination of the contract. This type of insurance may be a first requirement, in which case the compensation must be paid to the insured person within the period prescribed by the policy, without the opposition of exceptions being invoked to condition or defer such payment. & 9. Of the reinsurance contract Art. 584. Concept. By the reinsurance contract, the reinsurer is obliged to indemnify the reinsurer, within the limits and modalities established in the contract, for the liabilities affecting his assets as a result of the obligations of the reinsurer contracted in one or more insurance or reinsurance contracts. The reinsurance that protects the reinsurer takes the name of retrocession. In these contracts, they will serve to interpret the The parties to the international uses and customs on reinsurance. Article 585. Autonomy. Reinsurance does not alter in any way the insurance contract. The insurer may not defer payment of compensation for a claim to the insured person, on the basis of reinsurance. Article 586. Shares of the insured against the reinsurer. Reinsurance does not confer direct action on the insured against the reinsurer, unless the reinsurance contract provides that the payments due to the insured person by way of claims are made directly by the reinsurer to the insured or, in the case that the direct insurer gives to the insured person the rights that emanate from the reinsurance contract to charge the reinsurer. None of these conventions shall exonerate the direct insurer of its obligation to pay the claim to the insured person. Article 587. Mandatory rules for reinsurance. The provisions of Articles 585 and 586 are of an imperative nature. Section 3. From the insurance of persons Art. 588. Concepts. It is safe for persons who cover the risks that may affect the existence, physical or intellectual integrity, the health of the persons and those who guarantee to them, within or at the end of a period, a capital or a temporary income or life. For life insurance the insurer is obliged, in accordance with the modality and limits established in the contract, to pay a sum of money to the contractor or to the beneficiaries, if the insured person dies or survives the stipulated date. Life insurance is referred to as life insurance by which the insurer receives from the contractor a capital and is obliged to pay him or his beneficiaries an income up to the death of that or of the latter. The insurer is obliged, in accordance with the procedures laid down, to compensate the insured person or his beneficiaries, the bodily injury, the incapacity or death which he suffers from an accident. For health insurance, or the modalities of other insurances that include such coverage, the insurer is obliged to pay, in the form stipulated in the contract, the medical, clinical, pharmaceutical, hospitalization or other expenses in which the insured incurs, if this or its beneficiaries require medical treatment as a result of illness or accident. Article 589. Insurable interest in people's insurance. People's insurance can be hired by the insured himself or anyone who has an interest. Life insurance can be set on the life of your own or on a third, both for the case of death and for the case of survival or both. In the case of death, if the persons of the policyholder and the insured are different, the written consent of the insured person and the insured person shall be required, indicating the amount of the insured person and the person of the beneficiary. No insurance can be taken for the case of death, on the head of minors or the disabled. The insurance contracted in contravention of these rules will be absolutely void and the insurer will be obliged to refund the premiums received, being able to retain the amount of his expenses, if he has acted in good faith. Art. 590. Health declarations and examinations. The insurer may only require a history relating to the health of a person in the form set out in Article 525, and may request the practice of medical examinations in accordance with the law. Article 591. Preexisting diseases and ailments. Only those diseases, diseases or health conditions diagnosed or known by the insured person or by whom he or she contracts in his favour may be considered pre-existing. Article 592. Undisputability. After two years from the initiation of the insurance, the insurer may not invoke the reluctance or inaccuracy of the statements that influence the risk assessment, except where they have been intentional. Article 593. Designation of beneficiary. The designation of the beneficiary may be made on the policy, in a subsequent written statement communicated to the insurer or in a will. If, at the time of the actual or presumed death of the insured person, there are no beneficiaries or rules for his determination, his heirs shall be held. Beneficiaries who are heirs shall retain that status even if they repudiate the inheritance. The same provision shall apply where the insured person and the single beneficiary are killed simultaneously, or is ignored which of them has died first. The designation of the spouse as a beneficiary shall be understood to be the case at the time of death of the insured person. Article 594. Plurality of beneficiaries. If the designation is made in favour of several beneficiaries, the agreed benefit shall be distributed, unless otherwise provided, by equal parties. When it is done in favour of the heirs, the distribution will take place in proportion to the hereditary quota, unless otherwise agreed. The share not acquired by a beneficiary will increase to the others. Article 595. Revocation of the beneficiary. The insurance contractor may revoke the designation of the beneficiary at any time, unless he has waived this faculty in writing. In the latter case, to change the designated beneficiary, you must obtain your consent. Revocation shall be made in the same manner as for the designation. Article 596. Rights of the beneficiary. The amount of life insurance allowances paid exclusively for the benefit of the beneficiary. For all legal purposes, the right of the beneficiary is born at the time of the accident provided for in the policy, and from him may claim from the insurer the agreed benefit. The insurance policy shall cover, where appropriate, the rights of redemption and the reduction of the sum insured, so that the insured person may at any time be aware of the corresponding rescue or reduction value. It will also have to be regulated in the policy, the granting of advances to the taker on the insured benefit. Article 597. Cession and garment. Except if an irrevocable beneficiary has been designated, the contraaor may assign or pledge the policy. The assignment or the garment shall only be oponable to the insurer as long as the insurer has been notified of them in writing and through a minister of faith. The assignment and the pignoration of the policy imply the revocation of the designation of beneficiary. Article 598. Provocation of the sinister and suicide. The claim, which is caused by the beneficiary, shall deprive the recipient of the right to the benefit laid down in the contract, without prejudice to the criminal action to which it is taking place. Unless otherwise agreed, the risk of suicide of the insured person shall be covered only after two years of the conclusion of the contract, or if the insurance has been in force for the same period under successive renewals. Article 599. Absence or disappearance of the insured. Unless otherwise stated, the mere absence or disappearance of the insured person does not require the agreed benefit. Article 600. Revocation of the contract. In life insurance you will be prohibited from the insurer to terminate the contract in advance at your sole discretion. Article 601. Heritage covers. The arrangements for insurance covering medical, clinical, surgical, pharmaceutical or other expenses which are of a property damage shall be governed by the rules of damage insurance, unless they are contrary to their nature. ' Article 2 °. The following amendments were made to Title VII of Book III of the Code of Commerce: 1) To replace Article 1158, by the following: " Art. 1158. The provisions of the first and second sections of Title VIII of Book II of this Code shall apply to the insurance covered by this Title, except in matters governing otherwise. " 2. Article 1160 of this Code shall be as follows: Number 3 °, new, passing the current numbers 3º and 4th, to be 4th and 5th, respectively: " 3 ° Installations and machineries destined to fulfill faenas of loading, unloading, stowage and attention of ships and any other good that the parts consider exposed to risks related to the sea; "3) Reposition Article 1164, by the following:" Art. 1164. Any person who has an interest in the preservation of the insured thing while running the risks of that class may take a maritime insurance, whether that interest directly affects his or her assets or certain obligations of his or her thing secured. It is understood that a person has an interest in avoiding maritime risks, when she is in any legal or factual relationship with respect to the goods exposed to these risks and that, as a consequence of that relationship, may be affected by the damages, loss, arrest or delay in the arrival of such goods, or for incurring liability in respect of such goods. " 4) Rule 1168. 5. Rule 1170. (6) To replace Article 1173, by the following: " Art. 1173. The conclusion and proof of the maritime insurance contract shall be governed by the provisions of Article 515 of this Code. "7) Reposition Article 1176, by the following:" Art. 1176. In the case of the obligations referred to in Article 525 of this Code, the insured person must inform the insurer, before the contract is perfected, of any circumstances relating to the risks that he/she intends to insure and that known by him. It is presumed that the insured person has any circumstance that he cannot ignore in the ordinary course of his business. The reporting obligation is not limited to answering the insurer's questionnaires. The reluctance, inaccuracy or falsehood of information which is important for determining the nature and extent of the risk, produces the nullity of insurance. ' (8) Replace Article 1177 by the following: " Art. 1177. To be entitled to compensation, the insurance or must prove: 1 ° The existence of the insurance contract; 2 ° The boarding of the insured objects, if any; 3 ° The loss, expenses or damages claimed, or the liability, if any, and 4 ° The occurrence of the reported claim, and declare (9) Replace the first indent of Article 1189 of the Treaty by the following: " Art. 1189. Unless the policy provides otherwise, there shall be total loss assimilated, where the insured object is reasonable and definitely abandoned, either because the actual total loss appears to be unavoidable or because it is not possible to prevent its loss, without (a) to incur expenditure which exceeds the value of that object after the disbursement has been made. '(10) Reposition Article 1200, as follows:' Art. 1200. In the case of liability insurance, the insured person must inform the insurer of any claim that he or she is liable and may compromise the liability of the insurer. It shall also be obliged to take all the necessary measures of defence. '11) Remove the word' Solo 'in the first indent of Article 1201, by starting with the word' in ' below. Article 3 °. Add in Article 470 of the Criminal Code the following number 10 °, new: " 10 ° To which they maliciously obtain for themselves, or for a third party, the total or partial payment of an insurance, either simulating the existence of a claim, intentionally provoking it, presenting it to the insurer as being caused by causes or in circumstances other than the true ones, by concealing the insured thing or by fraudulently increasing the losses actually incurred. If the undue payment is not verified for reasons independent of his or her will, the minimum or, where appropriate, the minimum degree of the penalty shall be applied. The penalty shall be determined in accordance with the amount of the unduly requested. " Article 4 °. The following amendments were made to the decree with force of Law No 251 of 1931 of the Ministry of Finance: (a) Rule 26. (b) In Article 29, the following second indent: " However, a dispute concerning reinsurance shall be produced, the parties may agree that it shall be settled in accordance with the rules on international commercial arbitration provided for in the law. ". Transitional Article.-This law shall begin to apply on the first day of the seventh month following that of its publication. ' Having complied with the provisions of Article 93 (1) of the Constitution of the Republic of the Republic, and because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, April 15, 2013.-SEBASTIAN PINERA ECHENIQUE, President of the Republic.-Felipe Larraín Bascunan, Minister of Finance.-Patricia Pérez Goldberg, Minister of Justice. What I transcribe to you for your knowledge.-Atently, Julio Dittborn Cordua, Deputy Minister of Finance. Constitutional Court Draft law governing the insurance contract (Bulletin No. 5185-03) The Secretariat of the Constitutional Court, who subscribes, certifies that the Honorable Chamber of Deputies sent the bill enunciated in the area, approved by the National Congress, in order to have this Court exercise the preventive control of constitutionality with respect to the constitutional organic articles contained therein and by judgment of April 4, 2013 in the cars Rol Nº 2431-13-CPR, declared: 1st. That, with the exception of its final indent, the provisions contained in the new Article 543 that the article 1 of the draft law submitted to the examination introduces the Code of Commerce are own constitutional organic law and conform to the Constitution of the Republic. 2nd. That this Constitutional Court will not issue a statement regarding the final point of the new article 543 that the article 1 of the bill submitted for examination introduces the Code of Commerce, in preventive control of constitutionality, as it is not its own constitutional organic law. Santiago, April 4, 2013.-Marta de la Fuente Olguin, Secretaría.