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Showing posts from March, 2019

Article 647 of Commercial Act: Requests for Reduction of Premium upon Cessation of Certain Risks

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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.


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Article 646-2 of Commercial Act: Power of Insurance Agents, etc.

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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 where he/she d…

Article 646 of Commercial Act: Legal Effects of Facts Known to Agents

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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.


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Article 644 of Commercial Act: Legal Effects of Preexisting Perils Insured against

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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.


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Article 643 of Commercial Act: Retroactive Insurance

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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.


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Article 642 of Commercial Act: Demand for Re-delivery of Insurance Policy

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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.


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Validity of Insurance contract concluded for the purpose of unjust acquisition of insurance benefits(void)

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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 with motive w…

Article 641 of the Commercial Act: Effects of Terms and Conditions of Objection in Respect of Insurance Policy

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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.


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Article 640 of the Commercial Act: Delivery of Insurance Policy

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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.


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People extinguished by Thanos receive death insurance benefits?

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Thanos from the planet Titan, who is proud of his mighty power! The villain who's slaughtered so many creatures in the universe and the greatest in the universe! He goes around the universe and repeats the act of killing only half of the species in the stars he's encountered, and he gets information about Infinity Stone.

He finally has the strongest ability by holding all six Infinity Stones in his hands. If you've collected all six stones and then snap your fingers, you can quickly destroy half of the life in the entire universe.

It actually happened in 'Infinity War'. 'Infinity War' ends with a scene in which Thanos, who has all six Infinity Stones, snaps his fingers once and destroys half of all universe life. 


People who have died in vain in such a shocking scene must be legally dead. So, among those who have been destroyed, can those who have been insured during their lifetime get insurance benefits? If you get insurance benefits, many insurance compan…

Article 639 of the Commercial Act: Insurance for Benefits of Third Party

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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 (1), …

Article 638-3 of the Commercial Act: Obligation to Deliver and Explain Terms and Conditions of Insurance Contract

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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.


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Article 638-2 of the Commercial Act: Formation of Insurance Contracts

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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 contractual obligations un…

The validity of a life insurance contract concluded solely for the purpose of receiving the insurance proceeds by disguising the occurrence of an insured event from the outset

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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 proceeds, the…

Article 638 of the Commercial Act: Definition of insurance contract

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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.


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The development of insurance system(3rd Ed.)

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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 kind of risk need an insurance sy…

Preface to the 3rd Edition of the Insurance Law

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I supplemented the insufficient parts of the revised edition[2nd Edition] of the Insurance Law, and revised and supplemented the existing references by actively reflecting the newly published references. I also reflected meaningful and significant judgments among the judgments that were delivered after the revised edition.

The contents of the newly published third edition continue to be updated with much more fruitful and refreshing contents, with advanced correction and supplementation. As a practicing lawyer, I'm very happy to be able to have a spare time in my busy work and publish the third edition.

The author's life as a lawyer and a jurist is a continuation of the beauty that enjoys every moment of choice and creation, and the warmth seems to shine in it. It's still same even now that I'm writing this article.

I hope this book will help jurists, insurance-related practitioners, and many others who are interested in insurance contract law.


In the spring of 2019, Seoch…

An insurance contract conclusion as explained by the insurance planner, and judgment of death benefit

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In the judgment, a court declared that if an insurance salesperson(insurance planner) who used a job title that is deemed to have the right to conclude an insurance contract explained to prospective insurance policyholder that the insurance beneficiary is entitled to receive the insurance benefit of the amount equivalent to the death insurance on occasion of the first degree disability, the insurer is obliged to pay the death benefit to the insured person's side who has reached the first degree disability.

Yong Soo Lim(insurance attorney, Judicial Research & Training Institute 28th) introduces the contents of the judgment and provides commentary and legal advice with the opinions of attorney to help you understand.

The Ulsan District Court Civil Part 5(Chairman Yoon Tae Sik, Chief Judge) delivered a victory to the plaintiff in a lawsuit filed by Boseong Hi-tech against Samsung Life Insurance that "Samsung Life Insurance should pay KRW 200 million".



The court said,…

Hello, I'm Yong Soo Lim, Attorney at Law.

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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.


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