Parties to the Contract

Question 1

What is an insurer?

Answer 1

An insurer is the party who assumes or accepts the risk of loss and undertakes for a consideration to indemnify the insured or to pay him a certain sum on the happening of a specified contingency or event.

Question 2

What is an insured?

Answer 2

The person in whose favor the contract is operative and who is indemnified against, or is to receive a certain sum upon the happening of a specified contingency or event.

Question 3

Who may be insured? What are his required capacity?

Answer 3

Anyone, except a public enemy may be insured.

The insured may be a natural person, who is competent to make a contract, must possess an insurable interest in the subject of the insurance, and must not be a public enemy.

The insured may also be a juridical person.