(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 under 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 unless it has any reason to reject the application: Provided, That this shall not apply where the insured of a personal insurance contract is to undergo a physical examination, but fails to do so.[This Article Newly Inserted by Act No. 4470, Dec. 31, 1991]