Insurance Lawyer Yong-Soo Lim

보험전문 변호사 임용수

Article 651-2 (Effects of Questions in Writing)     Any fact about which the insurer asks in writing shall be presumed to be material. THE High-quality & Good Contents

Supreme Court Judgment 2004Da56677 Delivered on September 22, 2006[Insurance Proceeds] [Main Issues] [1]  The method of a third person's written consent which is a requirement for validity of life insurance contract which covers the death of a third person as an insured event [2]  Whether the insured's approval of the life insurance contract which covers the death of a third person as an insured event renders the insurance contract valid, where the insurance contract had been concluded without written consent of the insured (negative) [3] The case holding that it does not violate the principle of trust and good faith for the insurer to argue the nullity of the life insurance contract which covers the death of a third person as an insured event where there was no written consent of the insured, even in the case where the insurer has been receiving the premium for years or has paid the hospitalization payment following the life insurance contract [Summary of Decision] [1...

Article 651 (Termination of Contracts due to Breach of Duty of Disclosure)  If, at the time of making an insurance contract, a policyholder or the insured, due to bad faith or gross negligence, failed to disclose or misrepresented material facts, the insurer may terminate the contract within one month after it becomes aware of the non-disclosure or misrepresentation or within three years after the contract was made: Provided , That this shall not apply where at the time of making the insurance contract the insurer knew the non-disclosure or misrepresentation or failed to do so due to gross negligence. THE High-quality & Good Contents

Article 650-2 (Reinstatement of Insurance Contracts)   Where an insurance contract is terminated under Article 650 (2), and no refund for termination is paid, a policyholder may demand a reinstatement of a contract by paying to the insurer delayed premiums, together with the agreed interest within a specified period. The provisions of Article 638-2 shall apply mutatis mutandis to this case. THE High-quality & Good Contents

Article 650 (Effects of Payment and Delay in Payment of Premiums)   (1)  A policyholder shall pay the whole premium or its first installment without delay after the conclusion of a contract, and if the policyholder fails to pay it, the contract shall be deemed to have been rescinded when two months have lapsed after the contract is made, unless otherwise agreed. (2)  If premium installments are not paid at an agreed time, the insurer may require the policyholder to pay them within a reasonable period specified, and if he/she fails to do so, the insurer may rescind the contract. (3)  In cases of a policy effected on behalf of a specified third party, if the policyholder delays the payment of the premiums, the insurer shall not rescind or terminate the contract without requiring the third party to pay it within a reasonable time specified. THE High-quality & Good Contents

Article 649 (Voluntary Termination of Contracts Prior to Occurrence of Perils Insured against)  (1)  A policyholder may terminate a contract in whole or in part at any time before a peril insured against occurs: Provided, That in cases of an insurance contract prescribed in Article 639, the policyholder shall not terminate the contract without obtaining the consent of the third party or carrying the insurance policy with him/her. (2)  In cases of an insurance policy under which the insured amount is not reduced notwithstanding that the insurer has covered the peril insured against, the policyholder may terminate the insurance contract even after the occurrence of the peril insured against. (3)  In cases falling under paragraph (1), unless otherwise agreed by the parties, the policyholder may demand the return of any unearned premium. THE High-quality & Good Contents

Article 648 (Requests for Return of Premiums upon Nullification of Insurance Contracts)   Where an insurance contract becomes invalid in whole or in part, if a policyholder and the insured have acted in good faith and without gross negligence, they can demand a return of the insurance premium, in whole or in part. The same shall also apply where the policyholder and the beneficiary have acted in good faith and without gross negligence. THE High-quality & Good Contents

Article 647 (Requests for Reduction of Premium upon Cessation of Certain Risks) Where the parties to an insurance contract have agreed on an insurance premium in consideration of certain risks, if such risks have ceased to exist during the period of coverage, a policyholder may request reduction of the premium thereafter. THE High-quality & Good Contents

Article 646-2 (Power of Insurance Agents, etc.) (1) An insurance agent shall have the following powers: 1. Power to receive premiums from policyholders; 2. Power to deliver insurance policies prepared by an insurer to policyholders; 3. Power to receive an expression of intent concerning insurance contracts, such as offer, notice, notification, termination and cancellation; 4. Power to make an expression of intent to policyholders concerning insurance contracts, such as entering into, modifying, and terminating insurance contracts. (2) Notwithstanding paragraph (1), an insurer may restrict part of the powers of an insurance agent under the subparagraphs of paragraph (1): Provided, That the insurer shall not assert the effect thereof against policyholders with no knowledge of such fact. (3) A person who is not an insurance agent and brokers insurance contracts on a continued basis for a certain insurer shall have the powers under paragraph (1) 1 (only applicable to cases wh...

Article 646 (Legal Effects of Facts Known to Agents)   If an insurance contract has been concluded through an agent, the principal is deemed to have been aware of the facts which the agent knew. THE High-quality & Good Contents

Article 644 (Legal Effects of Preexisting Perils Insured against) If, as at the time of concluding an insurance contract, a peril insured against has already occurred or will never occur, such contract shall be null and void: Provided, That this shall not apply when both parties and the insured are not aware of it. THE High-quality & Good Contents

Article 643 (Retroactive Insurance) The parties to an insurance contract may agree that the coverage shall commence at a certain time prior to the conclusion of an insurance contract. THE High-quality & Good Contents

Article 642 (Demand for Re-delivery of Insurance Policy) If a policyholder has lost or has significantly damaged his/her insurance policy, he/she may request the insurer to redeliver the insurance policy. Expenses incurred in preparing such insurance policy shall be borne by the policyholder. THE High-quality & Good Contents

Supreme Court Judgment 2005Da23858 Delivered on July 28, 2005 [Insurance Proceeds] [Main Issues] [1] The meaning of "juristic acts contrary to social order" rendered null and void under Article 103 of the Civil Act [2] The validity of an insurance contract concluded for the purpose of unjust acquisition of insurance proceeds through a large number of insurance contracts (negative) [3] The case finding an insurance contract as concluded for the purpose of unjust acquisition of insurance proceeds and therefore invalid for being contrary to good morals and other social order [Summary of Decision] [1] Juristic acts contrary to social order rendered as null and void under Article 103 of the Civil Act include not only acts whose rights and obligations contravene good morals and other social order, but also acts which contravene social order because of its nature of being contrary to social order, arising from their mandatory implementation by law, or its combination w...

Article 641(Effects of Terms and Conditions of Objection in Respect of Insurance Policy) The parties to an insurance contract may agree that they may raise any objection to the correctness of the contents of an insurance policy within a certain period from the date of the delivery of the insurance policy. The period shall not be less than one month. THE High-quality & good contents

Article 640 (Delivery of Insurance Policy) (1) When an insurance contract has been formed, the insurer shall, without delay, prepare an insurance policy and deliver it to a policyholder, except where the policyholder fails to pay the whole premium or its initial premium. (2) Where an existing insurance contract is extended or altered, the insurer may be exonerated from the delivery of an insurance policy by writing down the extension or alteration on the existing insurance policy. THE High-quality & good contents

Article 639 (Insurance for Benefits of Third Party) (1) A policyholder may conclude an insurance contract for the benefit of a third party with or without a mandate of, specified or unspecified, the third party: Provided, That in cases of a non-life insurance contract, if there is no mandate of a third party, the policyholder shall inform the insurer thereof, and if he/she fails to do so, he/she may not assert against the insurer on the ground that the third party was not aware of the fact that the insurance contract was concluded. (2) In cases falling under paragraph (1), the third party shall be deservedly entitled to the benefits of the contract: Provided, That in cases of a non-life insurance contract, if the policyholder has compensated the third party for the loss caused by a peril insured against, he/she may claim from the insurer the payment of the insured amount to the extent that it does not infringe upon the third party's right. (3) In cases falling under paragraph...

Article 638-3(Obligation to Deliver and Explain Terms and Conditions of Insurance Contract) (1) When an insurer enters into an insurance contract, it shall deliver the terms and conditions of the insurance contract to a policyholder, and explain important contents of terms and conditions. (2) If the insurer violates paragraph (1), the policyholder may cancel the contract within three months from the date the insurance contract is formed. THE High-quality & good contents

Article 638-2 (Formation of Insurance Contracts)   (1) When an insurer receives from a policyholder a payment of the whole or any part of the amount equivalent to the premium, as well as an application for an insurance contract, it shall give him/her notice on whether it accepts the application or not within 30 days unless otherwise stipulated. If the insured of a personal insurance contract is to undergo a physical examination, however, the period shall run from the date of such physical examination. (2)  If the insurer neglects to give a notice on whether or not it accepts such application within the period set in paragraph (1), it shall be deemed to have accepted the application. (3)  Where the insurer receives from a policyholder the whole or any part of the amount equivalent to the premium, as well as an application for an insurance contract, if any event specified in the insurance contract has taken place before it accepts the application, it shall assume c...

Supreme Court Judgment 99Da49064 delivered on February 11, 2000 [Insurance Proceeds] 【Main Issues】 [1] The validity of a life insurance contract executed solely for the purpose of receiving the insurance proceeds by disguising the occurrence of an insured event from the outset (void) [2] In the event that one of the co-inheritors executed a life insurance contract with such inheritors as the beneficiaries for the purpose of fraudulently receiving the insurance proceeds by murdering the insured and subsequently murdered the insured, whether other co-inheritors who did not intentionally cause the occurrence of the insured event are entitled to claim the insurance proceeds (negative) 【Summary of Decision】 [1] Because a life insurance contract is an arrangement under which certain amount of money is to be paid upon an accidental occurrence of an insured event, there are concerns of moral hazard of intentionally murdering the insured for the purpose of receiving the insurance pr...

Article 638 (Definition of insurance contract) An insurance contract shall take effect when one of the parties pays the contractual premiums, and the other party promises to pay a certain amount of insurance proceeds or other benefits upon occurrence of an uncertain event against the property, life, or body of the former. THE High-quality & good contents

In a modern society based on the principle of private autonomy and the private property system, economic entities such as individuals and corporations freely decide, form and develop their own private economic life. In the process, it is bound to always relate to the large and small risks that threaten the safety of economic life. This risks lead to unexpected accidents anytime and anywhere, even with small carelessness, which makes human economic life unstable and spends a great deal of economic expense. It is necessary to prepare measures in advance to deal with and solve the economic difficulties that may be caused by unexpected accidents. The system for preparing for such unexpected accidents may include savings or public relief, but savings are not to cope with specific risks, and the public relief system is extremely limited in terms of the requirements for relief and the scope of relief victims. Therefore, many economic entities facing the same...

Hello, I'm Yong Soo Lim, Attorney at Law. Today is my first day to post on my blog. Here, I'd like to introduce you to 'PART Ⅵ INSURANCE' of Commercial Act that defines the insurance law in Republic of Korea. I'll also add some legal interpretations. Yong Soo Lim, Attorney at Law shall bear no legal responsibility for accuracy of such translation and interpretation, and in case of any divergence of translation and interpretation of Korean and English languages, the Korean text shall prevail. I look forward to your support and encouragement in the future. Thank you very much. THE High-quality & good contents