Suretyship Contract
Explanation
The law imposes clear obligations on the insurer [l'assureur] to protect the rights of the insured [l'assuré]. The insurer must include a detailed table specifying the amounts stipulated in the contract for each year (Article 1013). This table includes the cash reserve, reduced insurance, and the amount the insured can borrow. The insurer must pay these amounts upon request in Lebanon without additional formalities.
The termination of the contract [la résiliation] is considered optional as a general rule. The same applies to the insurer advancing money to the insured (Article 1014). However, this rule is subject to specific exceptions in the law, or when the insurer forces the insured to rescind.
The law addresses exceptional cases that lead to the automatic termination of the contract. The contract is necessarily terminated if the beneficiary [le bénéficiaire] intentionally causes the death of the insured (Article 1015). An exception is made for unintentional mistakes, where the contract does not terminate.
To protect the heirs when the insured is intentionally killed, the insurer must pay the reserve value to the heirs (Article 1015). This requires that the premiums [les primes] have been paid for three years or more. The insured may revoke the beneficiary's designation upon an attempted murder, even if the latter previously accepted the insurance.
The law emphasizes the mandatory nature of paying premiums in a specific type of insurance. The payment of premiums is mandatory in accident insurance contracts (Article 1021).
Official legal articles
replace · 1946-12-11: Open the official text
repeal · 1946-12-11: Open the official text
Think deeper
How do you reconcile making the insurer's advance optional, with the obligation to specify the insured's borrowing amount and pay it upon request?
Flashcards
What must the detailed table required by law from the insurer in the insurance contract include?
It must include the figures of amounts like the cash reserve, reduced insurance, and the annual borrowable amount (Article 1013).
Does the insured need to undertake complex formalities to receive the amounts due from the insurer?
No, the insurer must pay what is due upon the request submitted to them or their agent in Lebanon without the need for any formality.
Is the termination of the insurance contract mandatory or optional as a general rule?
The termination of the contract is optional, except in the cases stipulated by law or when the insurer forces the insured to rescind.
What happens to the insurance contract if the beneficiary intentionally causes the death of the insured?
The insurance contract is necessarily terminated.
When must the insurer pay the reserve value to the heirs of the insured who was intentionally killed by the beneficiary?
The reserve value must be paid to the heirs if the premiums have been paid for three years or more.
What is the right of the insured if the beneficiary attempts to kill them?
The insured has the right to revoke the designation of the beneficiary, even if the perpetrator of the attempt had accepted the insurance contracted for their benefit.
Is the payment of premiums optional in accident insurance?
No, the payment of premiums is mandatory in accident insurance.
Practice questions
Where must the insurer or their agent fulfill the request to pay the amounts due to the insured in the insurance contract?
The insurer pays the due amounts upon request submitted to them or their agent in Lebanon without any formality (Article 1013).
If the beneficiary causes the death of the insured through an unintentional mistake, what is the fate of the contract?
The contract terminates if the killing was intentional, excluding the case of an unintentional mistake (Article 1015).
When are the heirs of the insured entitled to claim the reserve value if the beneficiary intentionally kills them?
The insurer must pay the reserve value to the heirs if premiums were paid for three years or more (Article 1015).
In the event the beneficiary attempts to kill the insured, and the beneficiary had previously accepted the insurance, can the insured revoke their designation?
The insured may revoke the beneficiary's designation in case of attempted murder, even if they accepted the insurance (Article 1015).
What is the rule regarding the payment of premiums in accident insurance?
The payment of premiums is considered mandatory and binding in accident insurance contracts (Article 1021).
Case problems
Samir concluded a life insurance contract for the benefit of his nephew Rami. After four years of regularly paying the premiums, Rami intentionally killed Samir. Samir's heirs demanded the insurance company to pay the cash reserve value. The company refused on the pretext that the contract was terminated due to the beneficiary's crime. The company claimed that no one is entitled to claim any amount.
Model answer
The insurance contract is necessarily terminated if the beneficiary intentionally kills the insured (Article 1015).
The law protects the rights of the heirs in this case and grants them the right to claim the money. The law requires the insurer to pay the reserve value to the heirs or successors.
The law requires for the heirs' entitlement to the reserve value that premiums are paid for three years or more.
Samir paid the premiums for four years, which means the legal condition is fully fulfilled.
Samir's wife and children are entitled to receive the cash reserve value, and the company's refusal is legally unjustified.