(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 third party mandate, 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 made. <Amended by Act No. 4470, Dec. 31, 1991>
(2) In cases falling under paragraph (1), the third party shall be necessarily 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. <Newly Inserted by Act No. 4470, Dec. 31, 1991>
(3) In cases falling under paragraph (1), the policyholder is liable to pay the premium to the insurer: Provided, That if the policyholder has been adjudged bankrupt or has delayed the payment of the premium, the third party is also liable to pay the premium in so far as the third party does not waive his/her rights. <Amended by Act No. 4470, Dec. 31, 1991>