Part 1: Overview of Insurance Law

Section 1. Object of this book 2
1.
Commercial Law Insurance Part 2
2.
Insurance Business Act and Financial Consumer Protection Act 2
Section 2 Insurance System 3
1.
Definition of Insurance 3
(1) Overview/3 (2) Related Regulations/4
(3) Interpretation/5
2.
Comparison with Insurance-Adjacent Fields 19
(1) Deposit/19 (2) Trust/19
(3) Financial Investment/20 (4) Gambling/20
(5) Warranty/20 (6) Deduction/21
3.
Types of Insurance 22
(1) Public and private insurance/23 (2) For-profit and mutual insurance/26
(3) Property and Casualty Insurance/29 (4) Household and Corporate Insurance/34
(5) Other categories/34
4.
The Social Function of Insurance 37
(1) Functional/37 (2) Dysfunctional/37
Section 3: Fundamentals of Insurance Contract Law 39
1.
Definition of Insurance Contract 39
2.
Elements of an Insurance Contract 39
(1) Parties to the insurance contract/40 (2) Insurance accidents and insurance purposes/41
(3) Insurable interest/42 (4) Insurance premium, insurance amount, insurance benefit/42
(5) Insurance period, insurance premium period/42
3.
Actual 43 of Insurance Contracts
(1) Life insurance contract/43 (2) Non-life insurance contract/44
4.
Legal Nature of Insurance Contracts 44
(1) Unnecessary? Contractual nature/44 (2) Bilateral? Contractual nature/45
(3) Gambling contract/48 (4) Good faith contract/49
(5) Commercial contract (commercial activity)/52 (6) Continuing contract/53
(7) Compliance/53 (8) Independent Contract/54
5.
Characteristics of Insurance Contract Law 54
(1) Significance/54 (2) Technicality/54
(3) Goodwill/55 (4) Collectiveness/57
(5) Mandatory nature/63 (6) Public nature/67
(7) Internationality/67
6.
Source of Insurance Contracts Act 68
(1) Commercial Act, Insurance Section/68 (2) Commercial Act, Commercial Transactions Section/68
(3) Commercial law/68 (4) Civil law, etc./68
(5) Insurance Business Act and Financial Consumer Act/69 (6) Other laws/69
(7) Insurance Terms/69


Part 2: General Insurance Contracts

Chapter 1. Solicitation of Insurance Contracts
Section 1 Insurance Agents 72
1.
Meaning 72
2.
Type 72
3.
Insurance Planner 73
(1) Concept/73 (2) Legal Status/73
(3) Distinction from other recruiters/74 (4) Authority/74
4.
Insurance Agent 77
(1) Concept/77 (2) Distinction from other recruiters/78
(3) Authority/78
5.
Insurance Broker 81
(1) Concept/81 (2) Distinction from other recruiters/82
(3) Introduction History and Anglo-American Discussions/82 (4) Legal Status/83
(5) Authority/84 (6) Obligation/86
6.
Insurance 87
Section 2 Recruitment activities that differ from the terms and conditions of the recruiter 87
1.
Meaning 87
(1) Problem situation/87 (2) Problem of applying expression agency/87
2.
Case 88
(1) Content/88 (2) Evaluation/89
Section 3: Illegal acts of recruiters and employer liability 90
1.
Illegal acts by recruiters 90
2.
Insurer's User Liability 91
(1) Meaning/91 (2) Content/91
Section 4 Regulations on the Business Conduct of Recruiters, etc. 98
1.
General 98
(1) Meaning/98 (2) General Principles/100
(3) Customer classification/100 (4) Violation effect/101
2.
Duty to explain 103
(1) Meaning/103 (2) Object of explanation/104
(3) Degree of explanation/104 (4) Provision of documentation and confirmation of explanation/105
(5) Method of explanation/105 (6) Object of explanation/105
(7) Types of Breach of Duty to Explain/107 (8) Effects of Breach of Duty to Explain/107
(9) Comparison with the obligation to explain terms and conditions/111
3.
Principle of Suitability 111
(1) Significance/111 (2) Scope/112
(3) Applicable Objects/113 (4) Contents of the Suitability Principle/113
(5) Effects of Violation of the Principle of Suitability/114
4.
Principle of Appropriateness 114
5.
Other Business Conduct Regulations 116
(1) Insurance Information/116 (2) Advertisement/116
(3) Obligation to confirm duplicate insurance/116 (4) Communication means/117
(5) Prohibition of unfair practices/117 (6) Prohibition of unfair solicitation/117
(7) Obligation to provide contract documents/119
(8) Prohibited acts by financial product sales agents and brokers, etc./119
(9) Business standards for financial institutions, insurance agencies, etc./119

Chapter 2 Insurance Contracts and Terms and Conditions
Section 1 General Provisions 121
1.
Compliance with Insurance Contracts 121
2.
Insurance Policy Concept 121
3.
Features of Insurance Terms and Conditions 121
4.
Types of Insurance Terms 122
(1) Overview/122 (2) General Terms and Conditions, Special General Terms and Conditions/122
(3) Special Terms and Conditions/123 (4) Insurance Practice/123
5.
Limitations of Private Autonomy 124
6.
Reason for the Existence of Insurance Terms and Conditions 124
Section 2 Regulations on Insurance Terms and Conditions 125
1.
Need for Regulation 125
2.
Types of Regulation 125
3.
Legislative Control 126
(1) Overview/126 (2) Terms and Conditions Regulation Act and Commercial Act/126
(3) Insurance Business Act/127
4.
Administrative Control 128
(1) Meaning/128 (2) Terms and Conditions Regulation Act/128
(3) Insurance Business Act/129
5.
Judicial Control 130
Section 3 Legal Binding of Insurance Terms and Conditions 130
1.
Problem Statement 130
2.
Theory 131
(1) Theory of Agreement/131 (2) Theory of Legal Norms/132
3.
Case 133
(1) Adoption of the consensus theory/133 (2) Explicit or implicit agreement/133
(3) If you are not familiar with the terms and conditions/134
4.
Conclusion 134
Section 4: Problems with Individual Agreements 136
1.
The significance of individual agreements 136
2.
Issue 136: Validity of Individual Agreements
(1) Meaning/136 (2) Case law/137
(3) Theory/137 (4) Terms and Conditions Regulation Act/138
(5) Conclusion/138
3.
Existence of individual agreement 138
(1) Meaning/138 (2) Case/139
Section 5: Unapproved Insurance Terms and Conditions, Effect of Insurance Terms and Conditions Amendments 142
1.
Validity of insurance terms and conditions, such as non-approval, 142
2.
Effect of Insurance Policy Revision 143
Section 6. Duty to State, Provide, and Explain Insurance Terms and Conditions 144
1.
Overview 144
(1) Meaning of the duty to explain, etc./144 (2) Purpose of the duty to explain, etc./144
2.
Related Law 145
(1) Terms and Conditions Regulation Act/145 (2) Commercial Act/146
(3) Comparison of the Terms and Conditions Regulation Act and the Commercial Act/147
3.
The Relationship Between the Terms and Conditions Regulation Act and the Commercial Act 148
(1) Meaning/148 (2) Case law/148
(3) Theory/149 (4) Conclusion/151
4.
Object of description, etc. 151
(1) Statement, delivery/151 (2) Explanation/152
5.
157 In case of exemption from explanation, etc.
(1) In case of explicit provisions/157 (2) In case of recognition through interpretation/157
6.
Subject, counterpart, method, and timing of explanation, etc. 165
(1) Subject/165 (2) Opponent/165
(3) Method/166 (4) Timing/167
7.
Burden of Proof 169
(1) Meaning/169 (2) Distribution of burden of proof/169
8.
Relationship between the duty to explain, etc. and the duty to notify or inform 170
(1) If the insurance policy stipulates a duty to notify or the duty to notify itself/170
(2) If the insurance policy stipulates important matters subject to notification or notice/171
Section 7 Interpretation of Insurance Terms and Conditions 174
1.
General 174
(1) Frequent occurrence of disputes/174 (2) Considerations in interpreting insurance terms/174
(3) Interpretation Principles/175
2.
Principle of Fair Interpretation 175
(1) Significance/175 (2) Boundaries with content control/176
(3) Case/177
3.
Principle of Objective Interpretation 179
(1) Meaning/179 (2) Criteria for objective interpretation/179
(3) Case/181
4.
Principle of Disadvantage to Authors 194
(1) Significance/194 (2) Relationship between fair interpretation and objective interpretation/195
(3) Case/196
5.
Other Interpretation Principles 199
(1) Principle of strict interpretation of exemption grounds/199
(2) Principle of Valid Interpretation/200 (3) Interpretation of Terms and Conditions/200
Section 8 Control of the Contents of Insurance Terms and Conditions 201
1.
Meaning 201
2.
Case Law 201
(1) Judgment Criteria/201 (2) Cases/202

Chapter 3 Conclusion of Insurance Contracts
Section 1 Establishment of an Insurance Contract 205
1.
Subscription and Acceptance 205
(1) Unofficial contract of consummation/205 (2) Freedom of offer and acceptance/205
(3) Subject of Offer and Acceptance/206 (4) Method of Offer and Acceptance/206
(5) Validity and withdrawal of subscription/207 (6) Establishment of contract and its timing/209
2.
Duty to notify of failure 210
(1) Instability of the applicant's status/210 (2) Recognition of the insurer's obligation to notify of rejection/210
3.
Agenda 211
4.
Pre-approval Insurance Protection 211
(1) Significance/211 (2) Necessity/212
(3) History/212 (4) Legal nature/212
(5) Requirements/213 (6) Effects/217
Section 2 Duty to Notify 218
1.
General 218
(1) Meaning/218 (2) Distinction from other obligations/218
(3) Reason for recognition/219
(4) The Impact of Information Asymmetry on the Duty to Notify/220
(5) Legal nature/222 (6) Legislative examples/222
2.
Parties with a duty to notify 222
(1) Subject of the notice/222 (2) Opponent of the notice/225
3.
Timing and Method of Implementation 225
4.
Passivation of the duty to report 226
(1) Significance/226 (2) Necessity and Legislative Examples/226
(3) Interpretation/227 (4) Legislation/230
5.
Objective Requirements for Breach of Duty to Notify 230
(1) Important matters/231 (2) Unannounced or incomplete notification/240
6.
Subjective Requirement for Breach of Duty to Notify 242
(1) Legislative policy issues/242 (2) Intentional or gross negligence/242
7.
Burden of Proof 247
8.
Effects of Breach of Duty to Notify 248
(1) Meaning/248 (2) Effect of insurance contract/248
(3) Insurer's Liability/260 (4) Concurrent Application of Fraud and Mistake/271
9.
Legislative Theory on the Requirements and Effects of the Duty to Notify 276
(1) Raising the Issue/276 (2) Legislative Trends in Major Countries/277
(3) Coordinates of Korean Law/281 (4) Review by Issue/282
(5) Conclusion/287

Chapter 4 Obligations of the Insurer
Section 1 Obligation to Issue Insurance Certificates 289
1.
The Meaning of Insurance Securities 289
2.
Preparation and Issuance of Insurance Certificates 289
3.
Insurance policy details 290
4.
Insurance Policy and Terms and Conditions 291
5.
Reissuance of insurance certificates, etc. 291
6.
Legal Nature of Insurance Securities 292
(1) Formal securities/292 (2) Evidential securities/292
(3) Exemption securities, etc./293 (4) Marketable securities/294
Section 2 Obligation to Pay Insurance Claims 299
1.
General 299
2.
Occurrence of insured accident 300
(1) Characteristics of insurance accidents/300 (2) Contents of insurance accidents/307
(3) Insurance Accidents and Damages/309
3.
309 Occurred during the insurance period
4.
Payment of insurance premiums 310
5.
Absence of grounds for exemption 310
(1) General/310 (2) Artificial insurance accidents/316
(3) Exemption from liability due to war, etc./338 (4) Exemption from liability due to contract/340
(5) Requirements for counterclaims for exemption/343
6.
Payment of insurance money 345
(1) Insurance claim holder/345 (2) Method of performance/345
(3) Time of performance/345 (4) Place of performance/346
(5) Other/346
7.
Insurance claim due to fraud 347
(1) Significance/347 (2) Current Status and Problems of Fraudulent Claims/347
(3) Civil Response to Fraudulent Claims/348
(4) Legislative Theory/354
8.
Assignment and seizure of insurance claims 356
(1) Permitted in principle/356 (2) Restrictions under the Automobile Damage Act/356
9.
Statute of limitations for insurance claims 357
(1) Meaning/357 (2) Starting point/357
(3) Suspension/366 (4) Legislative Theory/367
10.
Statute of limitations for claiming return of insurance money 368
11.
Confirmation of the cow 369
Section 3 Obligation to Refund Insurance Premiums 372
1.
Invalidity and Cancellation of Insurance Contracts 372
(1) In case of invalidity/372 (2) In case of cancellation/372
2.
Termination of Insurance Contract 373
(1) Types of termination/373 (2) Article 649, Paragraph 3 of the Commercial Act/373
(3) Return Terms and Conditions/373
3.
Principle of Inseparability of Insurance Premiums 375
(1) Significance/375 (2) Theoretical Basis/375
(3) Recognition/376
4.
Statute of limitations 379
Section 4 Obligation to Distribute Profits 379

Chapter 5 Obligations of Policyholders, etc.
Section 1 Obligation to Pay Insurance Premiums 380
1.
Meaning 380
2.
Paying Party 381
(1) Payer/381 (2) Recipient/382
3.
Amount of insurance premium 382
(1) Meaning/382 (2) Change in insurance premium amount/382
4.
Payment location 384
5.
Payment period 385
6.
Effects of Delay in Payment of Initial Premium 386
(1) Meaning/386 (2) Occurrence of the right to release or release/386
(3) Release agenda, effect of release/388
7.
Effects of continued delay in premium payment 389
(1) Meaning/389 (2) Occurrence of right of termination/389
(3) Effect of termination/396
8.
Payment method 398
(1) Payment by bill or check/398 (2) Payment by credit card/402
9.
Statute of limitations 402
Section 2: Notification of Increased Risk Changes? Maintenance Obligation 403
1.
General 403
(1) Meaning/403 (2) Purpose/403
(3) Legal nature/403 (4) Overview of requirements and effects/404
2.
Obligation to notify of increased risk changes 405
(1) Requirement/405 (2) Effect/416
3.
Duty to Maintain Risk 421
(1) Meaning/421 (2) Requirements/421
(3) Effect/423
(4) Issue of Concurrent Application of Articles 652 and 653 of the Commercial Act/424
4.
Legislative Theory 425
(1) Meaning/425 (2) Effect of failure to notify/425
(3) Effects of notification/427 (4) Issues with introducing proportional compensation/428
Section 3 Obligation to notify of occurrence of insured accident 429
1.
Meaning 429
2.
Purpose 429
3.
Legal nature 429
4.
This is 429
5.
Effect 430
Section 4. Duty of Cooperation 431

Chapter 6 Changes in Insurance Contracts
1.
Termination of Insurance Contract 432
(1) Invalidity of insurance contract/432 (2) Cancellation of insurance contract/437
(3) Termination of insurance contract/438 (4) Termination of insurance contract/438
(5) Expiration of insurance period/445 (6) Occurrence of insured event/445
(7) Occurrence of a cause other than an insured accident/446
2.
Changes to Insurance Contracts 446
(1) Change by agreement/446 (2) Change by law/447
3.
Resurrection of Insurance Contracts 447
(1) Meaning/447 (2) Legal nature/448
(3) Requirements for Resurrection/449 (4) Some Issues/452

Chapter 7 Insurance Contracts for Others
1.
Meaning 456
2.
Legal nature 456
3.
This is 458
(1) Expression of intent to benefit others/458 (2) Whether or not the other person is specific/460
(3) Whether or not another person is authorized/460 (4) Insurable interest in property insurance/461
4.
Effect 463
(1) Rights and Obligations of the Policyholder/463 (2) Rights and Obligations of Others/465


Part 3 General Theory of Non-Life Insurance

Chapter 1: Overview and Elements of Non-Life Insurance
Section 1 General Provisions 470
1.
The Meaning of Non-Life Insurance 470
2.
Characteristics of Non-Life Insurance 470
3.
Liability for Compensation and Distinction 471
4.
Types of Property Insurance 471
Section 2: Principle of Prohibition of Profit 471
1.
Meaning 471
2.
Purpose 472
3.
Contents of the Prohibition of Profit Principle 472
4.
Exception to the Prohibition of Profit Principle 473
5.
The Status of the Prohibition of Profit Principle 473
6.
Principle 474 of Prohibition of Conflict of Insurance Claims and Other Claims and Profit
(1) In case of receiving compensation for damages/474 (2) In case of receiving compensation for damages/474
Section 3 Insurable Interests 475
1.
Meaning 475
2.
Scope 476
3.
Legal Status 477
4.
Function 477
5.
Type 478
(1) Ownership interests, liability interests, etc./478 (2) Active interests, passive interests/481
(3) Legal interests, de facto interests/481
6.
Requirements for Insurable Interest 487
(1) Significance/487 (2) Possibility of monetary valuation/488
(3) Legality/488 (4) Confirmability/490
7.
Effect of Defects in Insurable Interests 494
(1) Invalidity of insurance contract/494 (2) Defects at the time of contract conclusion/495
(3) Expiration during the insurance period/495 (4) Violation of the principle of good faith/495
Section 4: Insured Value 496
1.
Meaning 496
2.
Scope 496
3.
Standards for Calculating Insurance Value 497
(1) Principle/497 (2) Exception/498
4.
Unrated Insurance 500
5.
Ki-Pyeong Insurance 500
(1) Meaning/500 (2) Purpose/500
(3) Requirements for pre-appraisal insurance/501 (4) Effect of pre-appraisal insurance/502
(5) Insurance Practice/505 (6) Legislative Theory/506
Section 5 Insurance Amount 507
1.
Meaning 507
2.
Necessity 507
3.
Distinction from insurance benefits 508
Section 6: Relationship between the insured value and the insured amount 508
1.
General 508
2.
Excess Insurance 509
(1) Meaning/509 (2) Excess insurance concluded without fraud/509
(3) Excess insurance concluded through fraud/512
3.
Duplicate Insurance 515
(1) Meaning/515 (2) Duplicate insurance concluded without fraud/517
(3) Fraudulently concluded duplicate insurance/528 (4) Applicable to liability insurance/529
4.
Some insurance 530
(1) Meaning/530 (2) Requirements/530
(3) Effect/531
Chapter 2 Effects of Non-Life Insurance Contracts
Section 1. Insurer's Compensation Obligation 533
1.
The significance of the obligation to compensate 533
2.
Distinction from liability for damages 533
3.
The Concept of Damage 534
4.
Time of occurrence of damage 534
5.
Types of Damage 535
(1) Property damage and non-property damage/535
(2) Active and passive damages/536
6.
Causal Relationship Between Insurance Accidents and Damages 536
(1) Significant causal relationship/536 (2) Competition of other causes/537
7.
Damage and subsequent circumstances 537
8.
Burden of Proof 538
9.
Set-off of negligence 538
(1) Occurrence of an insured accident/539 (2) Occurrence and expansion of damage/539
(3) Whether to compensate for the amount of negligence/539
10.
Profit and loss offset 540
11.
Disclaimer 540
12.
Calculation of Damages 541
(1) Standard/541 (2) New insurance/542
(3) Loss adjuster/543 (4) Cost assessment/544
13.
Payment of insurance money 545
(1) Terminology/545 (2) Payment Method/545
(3) Confirmation of insurance benefits/545
14.
Insurance Claims and Subrogation 549
(1) Meaning of subrogation/549 (2) Subrogation for insurance claims/549
Section 2. Duty of Policyholders, etc. to Prevent Losses 551
1.
General 551
(1) Meaning of the duty to prevent damage/551 (2) Purpose/552
(3) Legal nature/552 (4) Scope/552
2.
Requirements for the Duty to Prevent Damage 553
(1) Subject of Obligation/553 (2) Subjective Requirement/553
(3) Objective requirements/554
3.
Effects of Breach of Duty to Prevent Damage 556
(1) Liability for damages/556 (2) Complete exemption/557
4.
Damage prevention costs 557
(1) Insurer's burden/557
(2) When it is unclear whether an insured accident occurred/559
(3) Distinction from defense costs/560 (4) Exercise of the right of subrogation between insurers/560

Chapter 3 Insurer Subrogation
Section 1 General Provisions 562
1.
The significance of insurer subrogation 562
2.
Legal nature 562
Section 2 Subrogation of Insurance Objects (Subrogation of Remaining Property) 563
1.
Meaning 563
2.
Purpose 563
3.
Scope 564
4.
Distinction from insurance 564
5.
This is 565
(1) Total loss of the insured object/565 (2) Full payment of insurance money/566
(3) There will be no waiver of subrogation rights/566
6.
Effect 568
(1) Transfer of rights/568 (2) Time of transfer/569
(3) Types of rights/569 (4) Some insurance/569
(5) Disposition of rights/569 (6) Acquisition by succession/570
(7) Duty of Cooperation/570
Section 3 Subrogation of Claims 570
1.
Meaning 570
2.
Purpose 571
3.
Scope 572
4.
Relationship with Profit and Loss Offset 572
5.
This is 573
(1) Harmful acts/573 (2) Scope of third parties/575
(3) Existence of claim/582 (4) Payment of insurance money/584
6.
Effect 586
(1) Transfer of claim/587 (2) Within the limit of insurance money paid/587
(3) Exercise or disposition by the insured/592
(4) Loss of subrogation/593 (5) Transferred rights/594
(6) Maintaining the identity of rights/601
7.
605 Cases where set-off (or limitation of liability) is possible
8.
Reinsurance and Subrogation 606
9.
Limited application of domestic law 607

Chapter 4 Changes in Non-Life Insurance Contracts
Section 1 General Provisions 608
Section 2 Extinction of Insurable Interests 608
Section 3 Transfer of Insurance Purposes 608
1.
The significance of the presumption of succession 608
2.
Purpose of Presumption of Succession 609
3.
Legal Nature of Presumption of Succession 609
(1) Optional provisions/609 (2) Specific succession/610
4.
Requirements for Presumption of Succession 610
(1) Existence of insurance relationship/610 (2) Transfer of insurance purpose/613
5.
The Effect of Presumption of Succession 615
(1) Legal presumption/615 (2) Succession of insurance relationship/616
6.
Problem of counter-requirements 618
(1) Statement of the problem/618 (2) Conflict of theories/618
(3) Conclusion/618
7.
Issue of Duty to Notify 621
(1) Meaning/621 (2) Purpose/621
(3) Effects of Violation/621
8.
The Problem of Increased Risk Change 622
(1) Commercial Act Article 652 or 653/622 (2) Whether or not there is an increase in risk/623


Part 4: General Theory of Non-Life Insurance

Chapter 1 Fire Insurance
1.
General 626
(1) The meaning of fire insurance/626 (2) The legal nature of fire insurance/626
(3) Related Laws/626
2.
Elements of Fire Insurance 627
(1) Insurance accident/627 (2) Insurance purpose/627
(3) Insurable interest/628 (4) Insurance policy/628
3.
Insurer's Compensation 629
(1) Scope of compensation/629 (2) Reasons for exemption/630
4.
Group insurance? Comprehensive insurance 632
(1) Meaning/632 (2) Group insurance/632
(3) Comprehensive insurance/632
(4) Violation of duty to notify of some insurance purposes/633

Chapter 2 Transportation Insurance
1.
The Significance of Transport Insurance 634
2.
Elements of Transport Insurance 634
(1) Insurance accidents, etc./634 (2) Insurance amount/635
(3) Insurance policy/635
3.
Insurer's Obligations 635
(1) Compensation for damages/635 (2) Exemption from liability/635
4.
Suspension of Transportation? Changes and the Effect of Insurance Contracts 636

Chapter 3 Marine Insurance
Section 1 General Provisions 637
1.
The Significance of Marine Insurance 637
2.
Characteristics of Marine Insurance 637
(1) Corporate Insurance/637 (2) Internationality/638
(3) Limited application of domestic laws/638
3.
Types of Marine Insurance 639
(1) Classification by insurable interest/639 (2) Classification by insurance period/640
(3) Classification by insurance contract confirmation/641
Section 2 Elements of Marine Insurance 642
1.
Marine Insurance Certificate 642
2.
Insurance Accident 642
3.
Insurance period 643
(1) Ship insurance/643 (2) Cargo insurance/643
4.
Insured amount 644
(1) Pre-assessed insurance/644 (2) Unassessed insurance/644
5.
Changes and Termination of Insurance Relationships 644
(1) Change of course/644 (2) Departure/645
(3) Undue delay in departure or voyage/645
(4) Change of vessel/645 (5) Transfer of vessel/645
(6) Change of captain/646
Section 3 Insurer's Compensation for Damages 646
1.
Compensatory damages 646
(1) General average/646 (2) Salvage materials/646
(3) Special expenses/647
2.
Scope of compensation for damages under the Commercial Act 647
(1) Total loss/647 (2) Partial loss/647
(3) Sale of cargo/648
3.
Scope of compensation for damages under the terms and conditions 648
(1) Total loss only guarantee/648 (2) Individual average loss guarantee/648
(3) Collateral for partial loss/649
4.
Breach of Warranty under English Marine Insurance Act 649
Section 4. Exemption from Liability under Commercial Law 651
1.
Damage due to breach of duty of care regarding airworthiness 651
2.
Damage caused by the intentional or gross negligence of the charterer, etc. 652
3.
Normal expenses during the voyage 652
Section 5 Insurance 652
1.
The significance of insurance fraud 652
2.
Legal nature 653
3.
Causes of Insurance Abuse 653
(1) When the vessel or cargo is irretrievable/653 (2) When the vessel repair costs are excessive/654
(3) When the cost of loading and repair is excessive/655
4.
Requirements for insurance coverage 655
(1) Notice of insurance waiver/655 (2) Unconditionality and scope of insurance waiver/655
(3) Notice regarding other insurance contracts, etc./656
(4) Approval and disapproval of insurance claims/656
5.
Effect of insurance 656
(1) Rights and Obligations of the Insured/657 (2) Rights and Obligations of the Insurer/657

Chapter 4 Liability Insurance
Section 1 General Provisions 658
1.
The Significance of Liability Insurance 658
2.
Scope of Liability Insurance 658
(1) Liability for damages/658 (2) Liability for compensation, etc./659
3.
Legal Nature of Liability Insurance 660
4.
Types of Liability Insurance 660
5.
The Benefits of Liability Insurance 661
6.
Who is this insurance for? 661
Section 2 Elements of Liability Insurance 662
1.
Insurance Purpose 662
2.
Insurable Interest 663
3.
Insured amount 663
(1) Meaning/663
(2) Cases where the insured amount can be calculated from the time of contract conclusion/663
(3) Cases where the insured amount can be calculated after an accident occurs/664
(4) Article 725-2/665 of the Commercial Act
4.
Insurance Accident 665
(1) Meaning/665 (2) Theory/666
(3) Case law/668
Section 3 Legal Relationships of Liability Insurance 669
1.
Meaning 669
2.
Insurer's Obligations 669
(1) Compensation for damages/669 (2) Defense benefits/675
3.
Insured Obligations 680
(1) Duty to notify/680 (2) Duty to consult/682
(3) Duty of Cooperation/684
Section 4 Direct Claims by Third Parties 685
1.
Introduction 685
(1) The need for victim protection/685 (2) Means of victim protection/686
2.
Overview of Direct Claims 688
(1) Significance/688 (2) History and scope/688
(3) Event organizer/689 (4) Event period/689
(5) Mandatory provisions/689
3.
Legal Basis of Direct Claims 689
4.
Legal Nature of Direct Claims 690
(1) Meaning/690 (2) Case law/690
(3) Theory/691 (4) Conclusion/691
(5) Key Issues/693
5.
The Relationship Between Direct Claims and Claims for Damages 698
(1) Right to separate independence/698 (2) Joint and several obligations/699
(3) Accessory nature of direct claim/702
6.
Relationship between Direct Claims and Insurance Claims 704
(1) Right to separate independence/704 (2) Priority of direct claim/705
(3) Accessory nature of direct claim/705
7.
Obligations relating to direct billing 707
(1) Insurer's duty to notify/707 (2) Insured's duty to cooperate/708
8.
708 in case there are multiple direct claimants
9.
Legal Relationships of Multiple Liability Insurers in Joint Tort Liability 708
10.
Limited application of domestic law 710
Section 5 Business Liability Insurance 711
Section 6 Custodian's Liability Insurance 712
Section 7 Reinsurance 713
1.
Meaning 713
2.
Legal Relations of Reinsurance 714
(1) Relationship between reinsurance parties/714 (2) Relationship between primary insurance and reinsurance/714

Chapter 5 Automobile Insurance
Section 1 General Provisions 716
1.
The Meaning of Auto Insurance 716
2.
Types of Auto Insurance 716
3.
717 insured persons of automobile insurance
(1) Type/717 (2) Named Insured/718
(3) Relative insured person/719 (4) Approved insured person/720
(5) User Insured/721 (6) Driver Insured/721
Section 2 Personal Injury Insurance I 723
1.
General 723
(1) Meaning/723 (2) Characteristics/723
(3) Insured/724 (4) Purpose of insurance/724
(5) Insurance accident/724 (6) Insurance amount/724
(7) Recognition of direct claims for man-made accidents/725
2.
Article 3 of the Automobile Damage Act, Section 725, Driver Liability
(1) Meaning/725 (2) Establishment requirements/726
(3) Exemption from liability/737 (4) Insurer's liability for compensation/738
Section 3 Personal Injury Insurance II 740
1.
Meaning 740
2.
Trait 740
3.
Insured 740
4.
Insurance Purpose 740
5.
Insurance Accident 741
6.
Insurance amount 741
7.
Compensation Scope: Relationship with Personal Injury Insurance I 742
(1) When the insured is liable for the driver/742
(2) In cases where the insured is liable for tortious acts, etc./742
8.
Disclaimer 743
(1) Driving without a license/743 (2) Drunk driving/745
(3) Occupational accident/746 (4) Paid transportation/747
(5) Accident of the insured or his/her family, etc./748
Section 4 Other Insurance 749
1.
Property Damage Insurance 749
(1) Meaning/749 (2) Type/749
(3) Insured/749 (4) Purpose of insurance/749
(5) Insurance accident/749 (6) Insurance amount/750
(7) Exemption/750
2.
Own Vehicle Damage Insurance 751
(1) Meaning/751 (2) Legal nature/751
(3) Insured/751 (4) Purpose of insurance/751
(5) Insurance accident/751 (6) Insurance amount/751
(7) Disclaimer/751
3.
Personal Accident Insurance 752
(1) Meaning/752 (2) Legal nature/752
(3) Insured/753 (4) Purpose of insurance/753
(5) Insurance accident/753 (6) Insurance amount/754
(7) Disclaimer/754
4.
Uninsured Motorist Injury Insurance 754
(1) Meaning/754 (2) Legal nature/755
(3) Insured/755 (4) Purpose of insurance/756
(5) Insurance accident/756 (6) Insurance amount/756
(7) Disclaimer/756
Section 5 Criminal Settlement Fee and Coverage 756
Section 6 Individual Application of Disclaimer 757
Section 7 Special Provisions on Transfer of Automobiles 758
1.
Meaning 758
2.
Purpose 758
3.
Key Issue 759
(1) Scope of application/759 (2) Meaning of transfer/759
(3) The problem of the succession agenda/760
4.
Special Provision 760 of the Automobile Damage Act

Chapter 6 Guarantee Insurance
Section 1: The Meaning of Guarantee Insurance 761
Section 2 Legal Nature of Guarantee Insurance 761
1.
Insurance vs.
Warranty 761
(1) Meaning/761 (2) Case law/762
(3) Commercial Act provisions/765
2.
Insurance for Others 765
Section 3 Legal Relationships of Guarantee Insurance 766
1.
Elements of Surety Insurance 766
(1) Contracting parties/766 (2) Insurance purpose/766
(3) Insurance accident/767 (4) Insurance period/767
2.
Insurer's Obligations 767
(1) Compensation for damages/767 (2) Exemption from liability/768
3.
Insured's Duty to Prevent Loss 768
4.
Insurer's Subrogation and Right of Subrogation 769
(1) Insurer's subrogation and payer's subrogation/769 (2) Right of subrogation/770
5.
Limitation of the insurer's right to cancel 770
(1) Meaning/770 (2) Protection of the insured/771
(3) Arbitrary termination/772
6.
Surety Insurance and Article 644-772 of the Commercial Act


Part 5 Personal Insurance

Chapter 1 General Provisions of Personal Insurance
Section 1 General Provisions 776
1.
The Meaning of Life Insurance 776
2.
Types of Life Insurance 776
3.
Comparison with Property Insurance 776
(1) Purpose of insurance/776 (2) Payment method of insurance money/777
Section 2: Characteristics of Life Insurance 778
1.
Unnecessary Insurable Interest 778
(1) Interest-based and Consent-based/778 (2) The Commercial Law's Position: Consent-based/779
2.
Prohibition of Exemption from Liability for Gross Negligence 779
3.
The principle of prohibition of insurer subrogation 780
(1) Meaning/780 (2) Case law/781
(3) The problem of subrogation of the contract/782
4.
Eugene Insurance 783
5.
The Randomness of Accidents 783
6.
785 Reduction of insurance benefits based on contribution, such as pre-existing conditions
(1) Accident insurance/785 (2) Life insurance/786

Chapter 2 Life Insurance
Section 1 General Provisions 787
1.
The Meaning of Life Insurance 787
2.
Types of Life Insurance 787
(1) Death insurance, survival insurance, life-death mixed insurance/787
(2) Single-life insurance, group insurance/789
(3) Lump sum payment insurance, installment payment insurance/789
Section 2 Insurance Payment Liability 790
1.
Disclaimer 790
(1) Meaning/790 (2) Intentional exemption/790
(3) Causal relationship between intent and accident/790
(4) Exceptions to intentional exemption/791 (5) Mental illness exemption/791
2.
Proof of Chance 792
Section 3 Life Insurance on Others 792
1.
General 792
(1) Meaning/792 (2) Dysfunction/793
(3) Coping with Dysfunction/793
2.
Insured's Consent 795
(1) Meaning/795 (2) Cases where consent is required/795
(3) Legal nature of consent/797 (4) Method and timing of consent/798
(5) Subject of consent/800 (6) Opponent of consent/804
(7) Withdrawal of consent/804 (8) Defects in consent requirements/805
(9) Duty to explain consent requirements/808
Section 4 Life Insurance for Others 810
1.
Meaning 810
2.
Legal Status of the Beneficiary 811
(1) Rights of the beneficiary/811 (2) Obligations of the beneficiary/813
3.
Beneficiary Designation? Right to Change 813
(1) Policyholder's Rights/813
(2) Designation of the beneficiary? Change and confirmation issues/813
(3) Contents, method, timing, etc. of exercising the right to designate or change/820
(4) Notification to the insurer after exercising the right to change/822
Section 5: Life Insurance Claims and Inheritance 823
1.
823 If the heir is designated as the policyholder
(1) Nature of insurance claim: Heir's personal property/823
(2) Meaning of heir/824 (3) Renunciation of inheritance/824
(4) Disqualification from inheritance/825
2.
Internal relationship between the policyholder and the beneficiary (remuneration relationship) 825
3.
826 In case the policyholder and insured person are designated as the beneficiary
4.
In case there are multiple beneficiaries, the ratio of insurance claim rights is 826.
Section 6 Group Insurance 827
1.
General 827
(1) The meaning of group insurance/827 (2) The purpose and current status of group insurance/827
2.
Insured Person Requirements 828
(1) Collectivity, uncertainty/828 (2) Confirmation period/828
3.
Insured's consent 828
(1) Meaning/828 (2) Conclusion of group insurance contract/829
(3) Assignment of insurance claim rights/830 (4) Designation or change of insurance beneficiary/831
(5) Effect of defects in the regulations/833
4.
Beneficiary Problem 833
(1) Group insurance for oneself/833 (2) Group insurance premium retention restrictions/834
Section 7 Obligation to Return Insurance Premium Accumulation Funds 836
1.
Reason for return 836
2.
Return target 837
3.
Statute of limitations 838
Section 8: Terms and Conditions Loan 838
1.
The significance of term loans 838
2.
Legal nature 839
(1) Doctrine and Case Law/839 (2) Conclusion/841

Chapter 3 Accident Insurance
Section 1 General Provisions 845
1.
The Meaning of Accident Insurance 845
2.
Insurance Purpose 845
3.
Insurance Accident 846
4.
Compensation method 846
5.
Differences from Life Insurance 847
Section 2 Legal Nature of Accidental Death Insurance 847
1.
Meaning 847
2.
Case Law and Doctrine 847
3.
Conclusion 848
(1) Aspect of the basis/848 (2) Aspect of the application of commercial law/849
Section 3 Insurance Accidents 849
1.
Shanghai Requirements 849
(1) Significance/849 (2) Severity/850
(3) Chance/851 (4) Exogenous/854
(5) Damage to body/859
2.
Causality 859
(1) Meaning/859 (2) Case/860
3.
Burden of Proof 861
(1) Meaning/861 (2) Case law/861
(3) Theory/861 (4) Conclusion/862
Section 4 Exemption from Liability 862
1.
Limitation of Exemption 862
2.
Reason for exemption from contract 863
3.
Effectiveness of exemption clauses for unlicensed or drunk driving, etc. 863
Section 5 Application of Life Insurance Regulations 865
1.
Issue of consent of the insured in accident insurance where the policyholder and the insured are different 865
2.
Issue 865: Allowing Accident Insurance with Different Insured and Beneficiary
Section 6 Application of Non-Life Insurance Regulations 867
1.
Insurer Subrogation 867
2.
Duplicate insurance 869

Chapter 4 Health Insurance
1.
The Significance of Health Insurance 871
2.
Applicable Law 871


Case Index 873
Item Index 886

--

Abbreviation table



Abbreviations for major laws
Terms and Conditions Regulation Act… a law concerning the regulation of terms and conditions
Capital Market Act…Act on Capital Markets and Financial Investment Business
Automobile Damage Compensation Act… Automobile Damage Compensation Security Act
Financial Consumer Protection Act… Financial Consumer Protection Act

Abbreviations for major references
Kang Wi-du? Lim Jae-ho... Kang Wi-du? Lim Jae-ho, Commercial Law Lecture (Part 2), Jeonjeongpan, 2010
Kim Seong-tae… Kim Seong-tae, Insurance Law, 2001
Kim Eun-kyung… Kim Eun-kyung, Insurance Contract Act, 2016
Park Se-min… Park Se-min, Insurance Law, 3rd ed., 2016
Son Ju-chan… Son Ju-chan, Commercial Law (Volume 2), 11th Revised Edition, 2005
Song Ok-ryeol… Song Ok-ryeol, Commercial Law Lectures, 7th edition, 2017
Yang Seung-gyu… Yang Seung-gyu, Insurance Law, 5th edition, 2005
Yoo Joo-sun… Yoo Joo-sun, Insurance Law, 2013
Lee Ki-soo? Choi Byung-gyu? Kim In-hyeon... Lee Ki-soo? Choi Byung-gyu? Kim In-hyeon, Insurance? Maritime Law, 9th edition, 2015
Im Yong-su… Im Yong-su, Insurance Act, 2006
Jang Deok-jo … Jang Deok-jo, Insurance Law, 3rd edition, 2016
Jeong Gyeong-yeong… Commercial Law Lectures, Revised Edition, 2009
Jeong Dong-yoon … Jeong Dong-yoon, Commercial Law (Volume 2), 4th edition, 2011
Jeong Chan-hyung… Jeong Chan-hyung, Commercial Law Lectures (Volume 2), 18th edition, 2016
Jeong Hee-cheol… Jeong Hee-cheol, Commercial Law (Volume 2), 1990
Choi Ki-won… Choi Ki-won, Insurance Law, 3rd edition, 2002
Choi Jun-seon… Choi Jun-seon, Insurance? Maritime? Air Transport Law, 10th edition, 2016
Han Chang-hee… Han Chang-hee, Insurance Law, 3rd Edition, 2016

Preface to the Fourth Edition

Since the first edition of the Insurance Law was published in 2017, the fourth edition has now been published.
I would like to express my gratitude to the readers of this book.
Since the publication of the third edition in early 2021, a considerable amount of time has passed, and there was a great need to publish a revised edition. However, I was unable to find the time as I began my term as Chairman of the Fair Trade Commission in September 2022.
However, as the stock of the 3rd edition ran out and the number of revisions increased, I had to make time on the weekends to prepare the 4th edition with great difficulty.
This fourth edition reflects relevant legal revisions and new case law since the publication of the third edition.
In terms of legislation, the focus was primarily on reflecting the contents of the Financial Consumer Protection Act.
As for case law, we introduce and review new and important case law, such as the interpretation of insurance terms and conditions, the duty to explain insurance terms and conditions, the relationship between the duty to notify and the duty to inform, the statute of limitations for claims for return of insurance money, a suit to confirm the non-existence of an insurance payment obligation, the insurer's right to cancel based on loss of trust, the insurer's right of subrogation, and the right to direct claim in liability insurance.


I would like to express my gratitude to Chairman Jong-man Ahn of Park Young-sa, who kindly published the fourth edition, and to Director Seong-ho Cho and Deputy Director Seung-hyeon Lee, who have always supported me through planning and editing.

In Gwanak in September 2025
Han Ki-jeong