Regulates The Insurance Contract

Original Language Title: REGULA EL CONTRATO DE SEGURO

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"Article 1.-Title VIII of book II of the commercial code shall be replaced by the following:"title VIII of the first section insurance contract. " Rules common to all types of insurance article 512. Insurance contract. By the insurance contract one or more risks in Exchange for the payment of a premium, leaving it liable to compensate damage that affected the insured, or to meet a capital, income, or other agreed benefits are transferred to the insurer.
Risks may refer to certain goods, the right to demand certain benefits to the heritage as a whole and to the life, health and physical or intellectual integrity of an individual. Not only death but that survival are likely to be covered by the insurance risks. The rules of this title govern the totality of private insurance. Do not apply to social security, to health contracts governed by the decree with force of law No. 1 of 2006, of the Ministry of health, which sets the text revised, coordinated and systematized in Decree Law N ° 2.763, 1979, and law N 18.933 ° n ° 18.469, or to the insurance of occupational accidents and occupational diseases.

Article 513. Definitions. For the purposes of the insurance regulations means: to) insured: those who are affected by the risk that is transferred to the insurer.
(b) insurance: your account takes the risk.
(c) beneficiary: he, yet to be secured, is entitled to compensation in case of accident.
(d) certificate of coverage or definitive certificate: document which gives an account of insurance issued subject to the terms of a collective or floating insurance policy.
(e) provisional certificate: document which gives an account of the terms of a contract of insurance which are subject to the condition that the insured meets the stipulated requirements, within a time limit.
(f) Contracting, each party or taker: which celebrates the insurance with the insurer and on who relapse, in general, the obligations and charges of the contract.
(g) quote: the written offer for the insurer to enter into a contract of insurance.
(h) deductible: the stipulation that insurer and policyholder agree that the latter will support all events up to the amount of the loss that has been agreed.
(i) neglect: the transfer of the object of insurance in favour of the insurer, in the event of a total loss.
j) endorsement: the modification of written policy, unless it appears that the term has been used in its common meaning.
(k) franchise: the stipulation that insurer and policyholder agree that he will support all of the damage when this exceeds the amount that has been agreed.
(l) guarantees: the requirements designed to limit or reduce the risk, stipulated in a contract of insurance as conditions which must be met to make place to the indemnity in case of loss.
(m) underinsurance or underinsured: one in which the insured amount is less than the value of the insured at the time of the accident.
n) insurable interest: that the insured has in the non-realization of the risk, without prejudice to provisions of article 589 in relation to insurance of persons.
(n) assimilated or constructive total loss: the reasonable abandonment of the insured object, either because the effective total loss seems unavoidable, or because it is not possible to avoid it without incurring expenses that exceed three-quarters of its value after made the disbursement.
(o) total loss actual or effective: which completely destroys inevitably deprives of the insured good or thereby harms him which makes it definitely lose the fitness for the purpose to which it was intended. It will be a total loss of the insured good the loss that may cause a damage of at least three-fourths of its value.
(p) policy: the supporting document of the insurance.
(q) proposed: the written offer of purchase insurance, formulated to the insurer by the Contracting Party, the insured or a third party on your behalf.
(r) floating insurance policy: the policy contract that gives account, in general terms, of provisions agreed for specific relations of insurance which will be the subject of further formalisation.
(s) material: retribution or price of the insurance.
t) risk: the possibility of an event that may cause the insured or beneficiary a loss or a need can be estimated in money.
(u) first loss insurance: one that provides that, even where underinsurance, the insured will not support any part of the loss, except in the case that this exceeds the sum insured.
(v) insurance held at distance: that which has been agreed between the parties by any system of transmission and digital or electronic record of the word written or verbal.
(w) collective insurance: those covering using one policy against the same risks, a determined or determinable group of people.
(x) sinister: the occurrence of the risk or harmful event referred to in the contract.
and) Sobreseguro: that in which the insured amount exceeds the value of the object insured at the time of the accident.

Article 514. Proposal. The proposal to conclude a contract of insurance shall state coverage, background and circumstances necessary to appreciate the extent of the risks.
For these purposes, the insurer shall deliver to the policyholder, in writing, the information relative to the content of the contract which will be held. This must contain, at least, the type of insurance in question, the risks covered and exclusions; the insured amount, way to determine it and deductibles; the premium or its calculation method; the period of duration of the contract, as well as the explicitation of the onset date and term of coverage.

Art. 515. Celebration and evidence of the contract of insurance. The insurance contract is consensual.
The existence and terms of the contract may prove by all means test covering the laws, provided that there is a beginning of proof in writing that emanate from any document stating in telex, fax and e-mail messages and, in general, any system of transmission and digital or electronic record of the word written or verbal.
You will not accept any evidence against the wording of the policy that was issued after the completion of the contract to the insurer.
When the insurance record of a final certificate of coverage, means that form part of this terms and conditions of the respective collective or floating insurance policy.

Article 516. Ways to purchase insurance. Insurance for employed persons. Insurance can be contracted on their own, or the of a third party by virtue of a general or special power, and even without your knowledge and permission. You can also engage themselves on behalf of a third indeterminate but determinable, as stipulated in parts, by identifying the insured in the policy under the formula "to whom it may concern".
Means that the insurance corresponds to that has hired him, every time that the policy is not made that it is on own account or for a third party.
Insurance for employed persons, if the policy holder is in possession of the policy, you have the right to collect the compensation, but the insurer has the right to demand that the policyholder previously indicates the consent of the insured or demonstrate that the work mandated by this or because of an obligation or legal interest.

Article 517. Collective insurance contracts. There is collective insurance contracts in those cases in which one policy cover a certain or ascertainable group of people linked to or by the policyholder.
In this case call taker or contracting, to who holds the contract by the insured group.
Through the policyholder, the insurer shall deliver to each insured incorporated the contract of group insurance, a copy of the policy, or, at least, a certificate attesting the coverage. In the latter case, both the insurer and the policyholder and the insurance broker, must be kept at the disposal of the interested parties a copy of the policy.
The insurer shall, too, notified policyholders by the policyholder, any amendments of the insurance, which can only be made and govern, from the next renewal of the contract. Not informed modifications shall be enforceable to the insured.
In such an event, the insured may waive the contract by written communication addressed to the insurer, within ten days of received notification, in which case which has paid since the modification must be restored.
If communication of resignation has been submitted to the policyholder or the intermediary, its knowledge by the insurer shall be presumed from the date of its presentation.
The policyholder is responsible for damage caused by his performance in collective policies that intervene, without prejudice to the liability of the insurer for the efforts that has been entrusted. The insurer may not object to the insured any errors, omissions or deficiencies of the policyholder.
In this type of insurance contracts, compensation claims ceded in favour of the insured affected by them, or the beneficiary, if any.

Article 518. The policy mentions. The insurance policy shall be expressed, at least: 1. individualization of the insurer, the insured and the Contracting Party where it is not the same insured. If beneficiary has been designated, indicate its individualisation or the manner of determining it;
2 the insured subject specification;
3. the insurable interest;
4. the risk is transferred to the insurer;
5. the time when principia and concludes the risk to the insurer;
6. the sum or insured amount, or the mode of determining it;
7. the value of the insured good, if have been agreed;
8. the insurance premium, and the time, place and method of its payment;
9. the date in which extends and material or electronic signature of the insurer, and 10. The signature of the insured in those policies that require it in accordance with the law.
It is presumed that they act on behalf of the insurer, who sign the policies or documents that changed them, and their signatures are authentic.

Article 519. Delivery of the policy. The insurer shall deliver the policy, or the certificate of coverage, if any, to the contracting of insurance or the runner who had brokered it, within a period of five working days from the completion of the contract.
The runner should give the policy the insured within five working days of receipt.
The breach of the obligation of delivery of the policy shall entitle the insured to claim damages to the insurer, or to the corridor in his case.

Article 520. Insurable interest. The insured must have an insurable, present or future, interest with respect to the object of the insurance. In any case necessary that such interest exists at the time of the accident occur.
If interest does not changes to existing or cesare during the term of the insurance, the contract will end and the insured shall be entitled to the restitution of the portion of the premium not earned by the insurer to not run time.

Article 521. Essential requirements of the insurance contract. Nullity. They are essential requirements of the contract of insurance, the insured risk, the stipulation of premium and the conditional obligation of the insurer to indemnify.
The lack of one or more of these elements entails the absolute nullity of the contract.
Contracts that fall on objects of illicit trade and those not exposed to the insured risk or that have already run it are null absolutely also.

Article 522. Assignment of the policy. The insurance policy can be nominative or to order.
The assignment of nominative policy or the rights emanating from it requires acceptance of the insurer.
The assignment of the policy to the order can be done by simple endorsement.
However, the credit of the insured for indemnification of a loss has already happened, may transfer in accordance with the General rules on the assignment of receivables.
The insurer may raise exceptions you may have against the insured or beneficiary to the assignee or transferee.
The assignment of the policy transfers to the assignee all rights arising from the contract and the law for the insured.

Article 523. Term of coverage. The terms of the validity of the contract will be fixed in the policy.
In the absence of stipulation about the beginning of the coverage, the risks will be in charge of the insurer from the moment in which the contract is perfect.
In the absence of stipulation about their extinction, it will be the competent court determining until when it borne the risk by the insurer, taking into consideration the nature of the insurance, the clauses of the contract, uses and customs and other relevant circumstances.

Article 524. Obligations of the insured. The insured shall be obliged: 1 sincerely declare all circumstances request the insurer to identify the insured thing and appreciate the extent of the risks;
2nd report, at the request of the insurer, about the existence of other insurance that cover the same subject;
3° pay the premium in the form and time agreed;
4th use the care and zeal of a diligent parent to prevent the accident;
5 ° not aggravate the risk and give notice to the insurer of circumstances that come to their knowledge and meet the characteristics specified in article 526;
6° in case of accident, take all the measures necessary to save the insured thing or to preserve their remains;
7° notify the insurer as soon as possible once noted, the occurrence of any act that may constitute or constitute a claim, and 8° demonstrate the occurrence of the incident reported, and State faithfully and without reluctance, circumstances and consequences.
The insurer shall reimburse the expenses reasonably incurred by the insured to meet the obligations set forth in the 6th number and, in case of disaster imminent, also provided the 4th number. The refund may not exceed the sum insured.
If the policyholder and the insured are different people, it corresponds to the policyholder the fulfilment of the obligations of the contract, except those which by their nature must be met by the insured.
The policyholder obligations may be fulfilled by the insured.

Article 525. Declaration on the status of the risk. To provide the statement within the meaning of the number 1 of the preceding article, is sufficient contracting report to the tenor of that request the insurer, about facts or circumstances that learn and serve to identify the insured thing and appreciate the extent of the risk.
Agreed the insurance contract unless the insurer requested the Declaration on the State of the risk, this not you can claim errors, reticence or inaccuracies of the Contracting Party, nor those facts or circumstances that are not included in such a request.
If the damage has not occurred, and the contractor has incurred inexcusably errors, reticence or determining inaccuracies of the insured risk in information requested the insurer according to the number 1 of the preceding article, the insurer may terminate the contract. If errors, reticence or inaccuracies on the Contracting Party are not of any of these features, the insurer may propose a modification to the terms of the contract, to adapt the premium or the conditions for coverage not reported circumstances. If the insured rejects the proposition of the insurer or does it not reply within the period of ten days from the date of dispatch of the same, the latter may terminate the contract. In the latter case, the termination occurs at the expiration of the period of thirty days from the date of dispatch of the respective communication.
If the accident has occurred, the insurer shall be exempted from its obligation to pay compensation if it comes from a risk that would have resulted in the termination of the contract according to the preceding paragraph and otherwise, is entitled to compensation in proportion to the difference between the agreed premium and which is agreed in the case of the real status of the risk.
These sanctions shall not apply if the insurer, before entering into the contract, has known errors, reticence or inaccuracies of the Declaration or any due to meet them; or after its conclusion, it paves to be remedied or accepts them expressly or tacitly.

Article 526. Aggravation of insured risks. The insured, or contracting where appropriate, shall inform the insurer the facts or circumstances that substantially aggravate the stated risk, and occurring after the conclusion of the contract, within five days of having known, provided that by its nature, does not have able to be known otherwise by the insurer.
It is presumed that the insured knows the aggravations of risk stemming from events with their direct participation. If the incident has not occurred, the insurer, within the period of thirty days from the moment in which has taken knowledge of the aggravation of the risk, shall inform the insured its decision to terminate the contract or to propose a modification to the terms of it to match the premium or the conditions of the policy coverage. If the insured rejects the proposition of the insurer or does it not reply within the period of ten days from the date of dispatch of the same, the latter may consider terminated the contract. In the latter case, the termination occurs at the expiration of the period of thirty days from the date of dispatch of the respective communication.
If the accident occurred while the insured, or the contractor in the case, have made the Declaration on the aggravation of risks referred to in the first subparagraph, the insurer shall be relieved of its obligation to pay the compensation in respect of the insurance coverages affected by the worsening. However, in the event that the aggravation of the risk had led the insurer to enter into the contract under more onerous conditions for the insured, the compensation shall be reduced proportionately to the difference between the agreed premium and which had been applied to have known the real entity of the risk.
These penalties will not apply if the insurer, by the nature of the risks, was due to meet them and have accepted them expressly or tacitly.
Except in cases of fraudulent aggravation of risks, in situations in which, in accordance with the preceding subparagraphs, has resulted in the termination of the contract, the insurer must return to the insured the proportion of premium corresponding to the period in which, as consequence of it, is released from the risks.
Except in the form of personal accident insurance, the rules on the aggravation of risks will not have application in insurance of persons.
Section 527. Of the premium. The insurer wins premium from the moment that the risks start to run on their own, and will be entitled to receive or retain a whole in the event that appropriate compensation for a loss of total loss or end the entry into force in accordance with article 523. Agreed the duration of coverage for a fixed term, the premium accrued proportionally to elapsed time.
The premium can consist of a sum of money, in the delivery of a thing or an estimable fact money.
Unless otherwise agreed, payment of the premium will be to deliver the policy, the certificate of coverage or endorsement, as appropriate, and shall be the domicile of the insurer or its representatives, agents or members for the collection.

Article 528. Non-payment of the premium. The lack of payment of the premium will result in the termination of the contract at the expiration of the period of fifteen days from the date of dispatch of the communication that, with that object, direct the insurer to the insured and shall entitle him to demand to be paid him the premium accrued up to the date of termination and the formalization of the contract costs.
Produced the termination, the liability of the insurer for the subsequent claims cease to full-fledged, without any judicial declaration.

Article 529. Obligations of the insurer. Besides the referred to in article 519, the insurer contracts the following obligations: 1) when insurance is contracted directly without intermediation of an insurance broker: advise the insured, offer you the most suitable coverage to their needs and interests, illustrate this on the terms of the contract, and assist you during the entire period, amendment and renewal of the contract and at the time of the accident. When insurance is contracted in this form, the insurer shall be liable for offences, committed errors and omissions and the damages caused to the insured.
(2) compensate the loss covered by the policy.

Article 530. The risks assumed by the insurer. The insurer responsible for the risks described in the policy, with the exception of the situations expressly excluded by it.
In the absence of stipulation, the insurer liable for all risks which, by their nature, correspond, except those excluded by law.

531 art. Sinister. Presumption of coverage and exceptions. The incident is presumed occurred by an event that is liable to the insurer.
The insurer can prove that the accident was caused by a fact that is not responsible for its consequences, according to the contract or the law.

Article 532. Time of the accident. If the incident has during the term of the insurance policy and will continue after expired, the insurer shall be liable for the full amount of damages. But if you principiare before and will continue after that the risks have begun to run on behalf of the insurer, this will not be responsible for the accident.

Article 533. Plurality of causes of an accident. If the claim comes from various causes, the insurer is responsible for the loss if any of the concurrent causes corresponds to a risk covered by the policy.

Article 534. Subrogation. For the payment of compensation, the insurer is subrogates in the rights and actions that the insured has against the third party because of the incident.
The insurer is not entitled to subrogation against the cause of the accident that is spouse or blood relative of the insured in all the straight line and up to the second degree inclusive of the collateral line, and for all those people that the insured be civilly responsible. However, proceed subrogation if liability is covered by insurance, but only for the amount that this is covered or comes from dolo.
The insured shall be liable for its acts or omissions that could jeopardize the exercise of actions in which the insurer is subrogated.
The insured shall retain their rights to sue those responsible for the accident.
In case of concurrence of insurer and insured against liable third parties, the retrieved collection will be divided between them in proportion to their respective interests.

Article 535. Cases of wilful intent or gross negligence. The insurer is not obliged to compensate the loss arising out of malice or gross negligence of the insured or the policyholder if necessary, unless agreed otherwise in the case of gross negligence.

Article 536. Extinction and reduced risks. The insurance ends if the risk is extinguished after held the contract.
If it decreases the insured risk premium is set at risk to effectively assume the insurer from the moment in which this take knowledge of it. This standard will not have application in insurance of persons, except in the form of personal accident.

Article 537. Early termination. The parties may agree that the insurer can terminate early contract, with expression of the causes that justify it, subject to the legal exceptions.
In any case, the termination of the contract will occur after the expiration of the period of thirty days from the date of dispatch of the respective communication.
The insured may terminate prospectively to the contract, subject to the legal exceptions, communicating to the insurer.
The premium shall be reduced in proportion to the run time, but in case of occurred a total loss accident means an accrual completely.

Article 538. Withdrawal of a contract of insurance held at distance. Insurance contracts concluded at a distance, the contractor or insured will have the right to withdraw within the period of ten days, counted since you receive the policy, without expression of cause or charge, having the right to a refund of the premium which has been paid.
This right may not be exercised if any verified a claim, or in the case of insurance contracts whose effects finish before the period referred to in the preceding paragraph.

Article 539. Other causes of ineffectiveness of the contract. The insurance contract is null if the insured person, knowingly, provides to the insurer information substantially false testifying to listed number 1 ° of article 524 and is resolved if incurred in such conduct to claim compensation for a loss.
In such cases, pronounced the nullity or resolution of the insurance, the insurer may retain the premium or claim your payment and charge the costs that has sued it to prove this, although he has not run any risk, without prejudice to the criminal action.

Article 540. Situations in the event of bankruptcy. Declared the bankruptcy of the insurer still pending risk, the insured may terminate prospectively to the contract, in which case is entitled to a proportional refund of the premium, or to require the competition to secure the fulfillment of the obligations of the failed.
The insurer has the same option if occurs the bankruptcy of the insured before paying the premium total.
If the contest or the trustee not granting bail within five days following the respective judicial application, it will end the insurance.
In the case of bankruptcy of the insurer, appropriations of the insured for claims that occurred prior to the bankruptcy will enjoy the preference of the number 5 of the 2472 article of the Civil Code.
However, the concept of reinsurance payments will benefit policyholders, whose credits for claims will prefer any others who are practicing against the insurer, without prejudice to contribute to the expenses of administration of the bankruptcy or liquidation, in his case.

Article 541. Prescription. The issued shares of the insurance contract prescribed in the term of four years, counted from the date on which has been made enforceable the respective obligation.
Out other legal grounds, the prescription that runs against the insured is interrupted by the denunciation of the sinister, and the new term shall remain in force from the moment in which the insurer communicate its decision on the matter.
In life insurance the period of limitation for the beneficiary shall be four years and be counted since you know the existence of the right, but in no event exceed ten years from the accident.
The limitation period can not be abbreviated in any form of revocation or estoppel, and insurance referred to in article 570, that period shall not be lower the action having the third handicapped against the insured.

Article 542. Mandatory standards. The provisions that govern the contract of insurance are mandatory, unless otherwise specified in these. However, shall be deemed valid contractual provisions that are more advantageous to the insured or the beneficiary.
Excluding from the foregoing, insurance damage hired individually, in which both the insured and the beneficiary, is a legal person and the amount of the annual premium that is suits exceeds 200 units of building and town and sea and air transport insurance.
Article 543. Settlement of disputes. Any difficulty that arises among the insured, the Contracting Party or the beneficiary, as appropriate, and the insurer, either in relation to the validity or unenforceability of the contract of insurance, or on the occasion of the interpretation or application of General or specific conditions, its enforcement or breach, or about the origin or the amount of compensation claimed under cover of the same It will be resolved by an arbitrator arbitrator, appointed by common accord by the parties when the dispute arises. If interested parties do not shall agree in the person of the referee, this shall be appointed by the ordinary courts, and in such a case, the arbitrator shall have the powers of the arbitrator with regard to the procedure, and must sentence according to law.
In any case it may designate in the insurance contract, in advance, to the person of the referee.
In disputes between the insured and the insurer arising on the occasion of a claim whose amount is less than 10,000 units of fomento, the insured may elect to exercise its action before the ordinary courts.
The arbitral or ordinary court where hear the case, shall have the following powers: 1° support, at the request of a party, in addition to the evidence set out in the code of Civil procedure, any other kind of test.
2° order of trade, at any stage of the trial, the evidentiary proceedings as it deems appropriate, with summons of the parties.
3° call parties to his presence to recognize documents or instruments, justify their challenges, and may resolve on the matter, without to prejudgment regarding the controversial main topic.
4° appreciate the test in accordance with the rules of healthy criticism, and must enter in ruling the foundations of such appreciation.
It will be competent to know the causes to which the insurance contract, that of the domicile of the beneficiary gives place.
Insurance companies must send to the Superintendency of securities and insurance, certified copy of the final judgments that are spoken on matters of this law, relapses recovery processes that have been part, which will be available to the public.

Article 544. Classification of insurance. Insurance are damages or people. Damage, are real or heritage.

Second section. Damage insurance & 1. General rules article 545. Object. Insurance of this kind are aimed at the compensation of the damage suffered by the insured and may fall on tangible property, rights or on a heritage.

Article 546. Insurable interest. Any person who has a lawful and valuable heritage, present or future interest in money, may enter into a contract of insurance against damage.
If it has no insurable interest at the time of an accident, the insured cannot claim compensation; but in any case you have the right that gives you the second paragraph of article 520.

Article 547. Concurrence of insurable interest. Open different insurable interests, that can be covered on the same insured object simultaneously, alternative or in succession to concurrence of the value of every interest.

Article 548. Assurance of universalities. Industrial, mining, agricultural, commercial facilities, land, sea and air shipments and, in general, universalities or sets of goods that are same insurance matters, by location, or other circumstances may make with or without specific designation of goods containing or consisting. Furniture that constitute a household can also be secured in the same way, except those who have a great price, as the jewelry, high-value boxes, art objects or other analogues, which will be secured with specific designation.
In one case the insured must identify the objects insured and justify their existence and value at the time of the accident.

Article 549. Own Vice. The insurer is not liable for loss or damage of the insured thing Vice from, unless otherwise noted.
Own Vice means the germ of destruction or deterioration which carry itself things by their own nature or purpose, although I suppose most perfect quality in its kind.

Article 550. Principle of compensation. With regard to the insured damage insurance is a mere compensation contract and can never constitute for him the opportunity gain or enrichment.

Article 551. Assurance of profits. So that the profits of the insured is covered, it must be expressly agreed.

Article 552. Insured amount and limit of the compensation. The sum insured is the maximum limit of compensation that is obligated to pay the insurer in case of accident and does not represent value of insured property.
In the actual insurance compensation shall not exceed the value of the good or the respective interest insured at the time of the sinister, even though the insurer has been responsible for a sum exceeding it.
If the insured amount consistiere in a share, means that this refers to the value that has the object insured at the time of the accident.
In the property insurance compensation may not exceed, within the limits of the Convention, the prejudice suffered by the assets of the insured as a result of the accident.

Article 553. Proportional rule. If the sum insured is less than the value of the property at the time of the accident, the insurer shall indemnify damage to pro rata between the guaranteed quantity and which is not.
However, the parties may agree not to apply the proportional rule provided for in the foregoing paragraph, in which case the insured will not support any part of the damage if an accident, unless this exceeds the sum insured.

Article 554. Assessment of the insured thing. Real insurance in the value of the insured can be established through an estimate expressly agreed at the time of the agreement.
It is not valuation agreed unilaterally single enunciation of the amount insured, nor the statement concerning the value of the goods made by the insured in the proposal or in other documents.
Existing agreed valuation, the determination of the compensable damage will be from such value, not having application Article 552.
The value agreed only may be challenged by the parties when the stipulation finf a vice of consent.
Established the origin of the challenge, the sum insured and premium will be reduced to concurrence of the true value of the insured thing.

Article 555. Replacement value insurance. In actual insurance at the time of contracting the insurance, parties may stipulate that the payment of compensation shall be on the basis of the value of replacement or replacement of the insured property, but shall not exceed the limit of the insured sum. For goods, they may agree that the compensation corresponds to its price on the market.

Article 556. Effects of the plurality of insurance. When it has hired more than one insurance that covers the same subject matter, interest and risk, the insured may apply to any of the insurers payment of the loss, according to the respective contract and any of the others, the balance not covered. The whole of the compensation received by the insured may not exceed the value of the insured object.
If the insured has received most of what was, entitled to repeat against those insurers who have paid excess. In addition, have the right to collect damages if event of bad faith by the insured.
When reporting the accident, the insured should be communicated to all insurers with whom has contracted, other insurance to cover it.
The insurer that will repay the loss, has the right to repeat the others share that corresponds to them in compensation, depending on the amount covering the respective contracts.

Article 557. Coinsurance. There is coinsurance when, with the consent of the insured, two or more insurers agree to make a certain risk in common. In such a case, each insurer is forced to pay the indemnity in proportion to their respective participation dues.
If a single policy is issued, it shall be presumed that the coasegurador that issued it is representative of the other for all purposes of the contract.

Article 558. Sobreseguro. If the sum insured exceeds the value of the secured asset, either party may require its reduction, as well as the premium, except the case in which it has agreed that value in accordance with article 554.
If an accident occurs in such circumstances, the compensation will cover damage, according to the cash value of the asset.
If the sobreseguro comes from bad faith by the insured, the contract will be null, however which the insurer shall be entitled to the premium by way of penalty, without prejudice to the criminal action to any place.

Article 559. Transfer of insurance. Transmitted the property of the insured by universal or singular title, insurance will be for the benefit of the person entitled from the moment in which risks apply to you, unless insurance has been consented to by the insurer in consideration to the person of the deceased. Completed the insurance for this cause, shall apply the provisions of the second paragraph of article 520.
Article 560. Transfer of insurance. If the object of the insurance or the insurable interest may be transferred, will cease full insurance on the expiry of the term of fifteen days, counted from the transfer, unless the insurer accepted that this will continue for the account of the purchaser or that the policy is to order.
However, if the insured party conservare any interest in the subject of insurance, this will continue in their favor to concurrence of their interest.

Article 561. Loss of the insured thing. The loss or destruction of the insured thing or on which rests the insurable interest, caused by a cause not covered by the insurance contract, will produce its completion and will impose on the insurer the obligation to return the premium in accordance with the second subparagraph of article 520.
If the loss or destruction is partial, will reduce the insured amount and the premium in the corresponding proportions.

Article 562. Insured persons forced to take accounting. If the insured people legally obliged to take accounting, they must prove their existences with their inventories, books and accounting records, without prejudice to the merit of other evidence which the parties might pay.

Article 563. Form of compensation. The insurer shall indemnify the loss in money, unless stipulated that it can do so through the replacement or repair of the insured thing.

Article 564. Abdication. The insured can do neglect of the insured things, unless otherwise agreed.

Article 565. Exercise of rights of third parties on the compensation. The thing that is the insurance will be surrogate for the amount ensured for the effect of exercise on the privileges and mortgages constituted about one.
To do this, the respective creditors shall notify the insurer of the existence of their privileges or mortgages.
The same rules apply when the insured thing has been precautionary measure, however, or otherwise affects legal right of retention.

& 2. Insurance against fire Art. 566. Concept. By insurance against fire, the insurer undertakes to indemnify the damage objects secured by the direct action of the fire who suffer and those who are an immediate consequence thereof, such as those caused by heat, smoke, steam or by the means employed to extinguish it or contain it; and demolitions that are necessary or ordered by the competent authority. Additional insurance that protects the insured against other risks may also sign up, as an extension or extension to the fire coverage.

Article 567. Content of the policy. Besides enunciations required by article 518, the policy must express location, destination and use of the immovable property insured, and adjoining buildings, as these circumstances may affect the estimation of the risks.
Equal terms should contain the policy with respect to the buildings in which they are placed or stored the collateral, when insurance be on the latter.

& 3. Theft insurance, theft and other subtractions Art. 568. Losses insurable by this type of insurance. You can make sure the damages caused by the abduction of things, through the Commission of crimes or other illegal behavior indicated by the policy.
May be also covered by this insurance damage resulting from destruction or deterioration of the insured object or the place in which it is located, provided that they have been caused during the execution of the fact.

Article 569. Loss of the right to compensation. If the insured risk consists of a crime, the insurer may be repeated paid compensation if Court declares that there is no such crime.

& 4. Article 570 civil liability insurance. Concept. Civil liability insurance, the insurer undertakes to indemnify damages caused to third parties, which is civilly liable for the insured, a fact and in the terms provided for in the policy.
In liability insurance, the insurer shall pay compensation to the affected third, under enforceable sentence, or judicial or extra-judicial transaction held by the insured person with their consent.

Article 571. Notification. The insured must give notice within reasonable time to the insurer, any news that receive affected third intention or his successors in title of claim indemnity, or the threat of initiating action against; legal notifications you receive, and the occurrence of any fact or circumstance that might give rise to a claim against.

Article 572. Extension of coverage. Unless they are protected by a special cover, the insured amount comprises both damages and damages caused to third parties, as the expenses and costs of the process that they or their successors in title shall promote against the insured.
Unless otherwise agreed, the policy does not cover the amount of guarantees that the insured must pay penalties or fines to be condemned.

Article 573. Defence of the insured party. The insurer has the right to assume the judicial defence of the insured against the claim of the third party. If it assumes it, shall have the right to appoint the lawyer in charge of exercising it and the insured is obliged to entrust his defence to whom the insurer indicate. The insured will be paid to the insurer and those who arrange this by its defence, information and cooperation that is necessary.
However, when who claim is also secured with the same insurer or there is another conflict of interest, this immediately communicated to the insured the existence of those circumstances, without prejudice to those proceedings which are necessary for his defense because of its urgent character. In such cases, and also when it is criminal, the insured can always choose between keep the legal defence in charge of the insurer or another person to instruct their own defense. In the latter case, the insurer will be liable for the costs of legal defence up to the amount agreed in the policy.

Article 574. Transaction. Accept the counter claim or compromise judicial or out-of-court with the affected third party, without prior acceptance of the insurer is prohibited to the insured. Failure to comply with this obligation, exempt the insurer from the obligation to compensate.
Does not constitute non-compliance with the circumstance for the insured, in the statements made, recognize true facts of which responsibility arises.

& 5. Insurance of land transport Art. 575. Concept and extension of coverage. By land transport insurance, the insurer undertakes to indemnify the damage that suffer the goods and the means used to pack them, during his charge, discharge or driving overland.
Unless otherwise agreed, the insurance coverage will include deposit transitional goods and immobilization of the vehicle or its change during the trip, when these events are due to circumstances of transport and not caused by some of the events that is excluded by the policy.

Article 576. Forms and duration of coverage. Land transport insurance can be contracted per trip or for a certain time.
Unless otherwise agreed, the insurance begins when the goods are delivered to the carrier and ends when they are delivered to the consignee at the destination point.
Unless the insurance is for travel, delivery to the consignee must be performed within the period provided for in the policy.

Article 577. Extra rules. In cases not provided for in this paragraph shall apply the provisions contained in Title VII of Book III of this code, "Of the maritime insurance".

& 6. Insurance of lost profits Art. 578. Concept and scope. Loss of profits insurance, the insurer undertakes to indemnify the insured decrease revenue and profits would have reached in the activity described in the policy, have not been the sinister.
The insurer may, in addition, cover overhead costs that continue disbursing the insured when the establishment is paralyzed total or partially a result of the accident and the extraordinary expenses incurred in order to resume the activities.

& 7. Article 579 credit insurance. Concept. By credit insurance the insurer undertakes to indemnify the insured loss experience for the breach of an obligation of money.

Article 580. Origin of the claim for compensation. There is payment of insurance: to) when the debtor has been declared bankrupt by a firm judicial resolution.
(b) when concluded with its creditors, agreements regulated by the bankruptcy law that will grant forgiveness.
(c) when having been sued Executive, is established that the debtor does not have sufficient assets to solve the debt or that, for its concealment, the continuation of the trial becomes impossible.
d) if the insured and the insurer agree that credit is bad.
(e) in all other cases that agreed by the parties.

Article 581. Collection expenses. The parties may agree that, in addition to the amount of the unpaid debt, the sum insured also cover costs arising from collection efforts and any other.

& 8. Surety insurance
Article 582. Concept. For suretyship insurance the insurer undertakes to indemnify the insured property damage suffered in the event of non-compliance by the policyholder or clamped, their legal or contractual obligations. All payment made by the insurer shall be reimbursed by the policyholder.
Exceptions or defenses that the policyholder objects to the insured, alleging that there has been no breach of the obligations guaranteed by the policy, shall be without prejudice to the insurer the compensation requested.

Article 583. Obligations of the insured. As soon as the policyholder or clamped incurred in an act or omission giving rise to an obligation that should be covered by the insurer, the insured shall take all appropriate measures to prevent such an obligation is made more expensive and to safeguard their right to a refund, in particular, bring the corresponding legal actions.
Failure to comply with these obligations will result, depending on its severity, reduction of compensation or termination of the agreement.
This type of insurance may be at the first request, in which case compensation shall be paid to the insured within the time established the policy, while the opposition of exceptions can be invoked to make conditional or defer the payment.

& 9. The contract of reinsurance Art. 584. Concept. By the contract of reinsurance the reinsurer is obliged to indemnify the reinsured, within the limits and procedures set out in the contract, by responsibilities affecting their heritage as a result of the obligations that it has entered into one or more contracts of insurance or reinsurance.
The reinsurance that protects the reinsurer takes the name of retrocession.
In these contracts, they will serve to interpret the will of the parties international customs on reinsurance.

Article 585. Autonomy. Reinsurance does not alter in any way the insurance contract. Not can the insurer differ the payment of compensation for an accident to the insured, because of reinsurance.

Article 586. Actions of the insured against the reinsurer. Reinsurance does not confer direct action to the insured against the reinsurer, except as provided in the contract of reinsurance that payments due to the insured in respect of claims made directly by the reinsurer to the insured, or in the event that produced the accident the direct insurer transferring the insured rights emanating from the reinsurance contract to collect to the reinsurer.
None of these conventions shall relieve the direct insurer from its obligation to pay the claim to the insured.

Article 587. Peremptory norms of reinsurance. The provisions of articles 585 and 586 are mandatory.

Third section. Insurance of persons art. 588. Concepts. Insurance are which covers risks that may affect the existence, physical or intellectual integrity, the health of the people and which guarantee, within or at the end of a term, a capital or a temporary or lifetime income.
For life insurance the insurer undertakes, in accordance with the mode and limits laid down in the contract, to pay a sum of money to the contractor or beneficiary if the insured dies or survives to the stipulated date.
Annuity is called the mode of life insurance whereby the insurer receives the registrant's capital and is obligated to pay him or their beneficiaries an income until the death of one or these.
For personal accident insurance the insurer undertakes, in accordance with the modalities stipulated, to indemnify the insured or beneficiaries, bodily injury, disability or death suffered the consequences of an accident.
For health insurance, or the methods of other insurance including coverage, the insurer undertakes to pay, as stipulated in the contract, medical, clinical, pharmaceutical, hospitalization or other insured incurred, if it or its beneficiaries require medical treatment as a result of illness or accident.

Article 589. Insurable interest in insurance of persons. The insurance can be hired by the insured himself or by anyone who has interest. Life insurance can provide about own life or that of a third party, both for the case of death the survival or both together.
Insurance for the case of death, if the policyholder the insurance and the insured persons, are different must be the written consent of the latter, with an indication of the amount insured and the beneficiary person. It may not take out insurance for the case of death, over the head of children or of disabled.
The insurance contracted in violation of these rules shall be absolutely null and the insurer will be obliged to return premiums received, and may retain the amount of your expenses, if you acted in good faith.

Article 590. Statements and health screenings. The insurer may only require background relating to the health of a person in the way established in article 525, and can apply the practice of medical examinations pursuant to the law.

Art. 591. Diseases and pre-existing conditions. Only they be considered pre-existing diseases, ailments or health situations diagnosed or known by the insured or who engages in its favour.

Article 592. Indisputabilidad. Two years after the commencement of the insurance, the insurer may not invoke the reluctance or inaccuracy of statements which influence the estimate of the risk, except when it has been intentional.

Article 593. Designation of beneficiary. The designation of the beneficiary may be in the policy, a subsequent written statement communicated to the insurer or Testament.
If beneficiaries nor rules determination not any at the time of the actual or presumed death of the insured, shall be by such heirs. Beneficiaries who are heirs shall retain such status although they repudiate the inheritance.
The same provision shall apply when the insured and the sole beneficiary die at the same time, or be ignored which of them died first.
The designation of a spouse as beneficiary means made it is at the time of the death of the insured.

Article 594. Plurality of beneficiaries. If the designation is made on behalf of several beneficiaries, the agreed provision will be distributed, unless stated otherwise, equal parts. When it is done in favor of the heirs, the distribution will take place in proportion to the hereditary share, unless otherwise agreed. The part not acquired by a beneficiary intermediations to others.

Article 595. Revocation of the beneficiary. The contractor insurance may revoke the designation of beneficiary at any time, unless he has renounced this ability in writing. In the latter case, to change the designated beneficiary, you must obtain their consent.
The revocation must be in the same manner established for the designation.

Article 596. Rights of the beneficiary. The amount of indemnity on life insurance gives exclusively the beneficiary.
For all legal purposes, the right of the beneficiary is born in the time of the accident provided in the policy, and from the claim of the insurer agreed delivery.
In the insurance policy shall be governed, where they come, the rights of rescue and reduction of the sum insured, so the insured can know at all times the corresponding value of rescue or reduction.
It should also be regulated in the policy, the granting of advances to the policyholder on the guaranteed benefit.

Article 597. Assignment and pledge. Except if irrevocable beneficiary is designated, the contractor may assign or pledge the policy. The assignment or the garment only will be opposable to the insurer provided have been notified of them in writing and through a Minister of faith. The assignment and the pledge of the policy imply the revocation of the designation of beneficiary.

Article 598. Aggravation of the accident and suicide. The accident caused intentionally by the insured, deprive it of the right to the allowance established in the contract, without prejudice to the criminal action to which any.
Unless otherwise agreed, the risk of suicide of the insured will only be covered from two years of the conclusion of the contract, or have been in force insurance for equal time under successive renewals.

Art. 599. Absence or disappearance of the insured. Unless stated otherwise, the mere absence or disappearance of the insured do not enforceable the agreed provision.

Article 600. Revocation of the contract. In life insurance it is prohibited to the insurer to terminate prospectively to the contract to his own will.

Article 601. Patrimonial coverages. The modes of insurance that cover expenses medical, clinical, surgical, pharmaceutical or others that have damage heritage character, shall be governed by the rules of damage insurance, unless they are contrary to its nature. "."