4TH YR. INSURANCE LAW REVIEW SY 2020-2021 Atty. Cecilia J. Jover-Angeles, Lecturer March 15, 2021 EXAM; 5:00-5:45 PM (INPUT YOUR ANSWERS ON THIS PAPER.) HONOR CODE The answers I submit below are my own. In typing them, I have not looked at books, notes, PPTs, nor consulted online search engines, nor received help from others either by telephone call or SMS. Preparatory to the exam, I have also closed all tabs on my laptop or desktop and cleared up my immediate surroundings of any reference material. I solemnly swear on my personal honesty and integrity that I will abide by this Honor Code. SIGNED: [ELIZA DEN A. DEVILLERES] WRITE ANSWER DIRECTLY IN THE BOX PROVIDED. EMAIL TO: rcalburo@addu.edu.ph Subject of the EMAIL: INSURANCE REVIEW Exam – (Eliza Den A. Devilleres) DO NOT CHANGE THE FORMAT OF THIS EXAM. NAME OF STUDENT: Eliza Den A. Devilleres 4-Manresa ANSWER QUESTION FALSE 1. The lessor of the property stipulated that the lessee shall not take out an insurance policy over the latter’s merchandise inside the premises without the consent of the former. Otherwise, the insurance is deemed assigned or transferred to the lessor. The lessor insists this to be a valid stipulation since the parties to a lease contract may establish terms and conditions as they may deem convenient. TRUE OR FALSE FALSE 2. Antonio plays golf regularly with his caddie, Salvador. The two have been together for five years now. In some tournaments, with Salvador as caddie, Antonio won top cash prizes. Because of this relationship, Antonio can take out an insurance contract over the life of Salvador. TRUE OR FALSE TRUE 3. Every stipulation in a policy of insurance for the payment of loss whether the person insured has or has not any interest in the property insured is void. TRUE OR FALSE. FALSE 4. Every insurance policy executed by way of gaming may not always be void. TRUE OR FALSE. FALSE 5. An unintentional concealment excuses the insured, hence the insurance company cannot rescind the contract of insurance. TRUE OR FALSE. TRUE 6. The effect of material concealment cannot be avoided by alleging that the insurer should have known and discovered the illness which the insured had concealed. TRUE OR FALSE. FALSE 7. Where the disclosure of other fire insurance policies upon the same property is one 1 TRUE FALSE TRUE FALSE FALSE TRUE TRUE FALSE TRUE FALSE TRUE FALSE FALSE FALSE TRUE FALSE TRUE FALSE RIGHT of the conditions specified in the fire insurance policy, the failure to disclose other insurance policies is not a fatal defect because it does not increase the risk of the peril insured against. TRUE OR FALSE. 8. The right to information of materials facts may be waived. TRUE OR FALSE. 9. The duty to disclose is confined to both facts, opinion, speculation or expectation. TRUE OR FALSE 10. A representation is to be deemed false when the facts fail to correspond with its assertions or stipulations. TRUE OR FALSE 11. When given the right to rescind a contract of insurance, the insurer must file an action in court immediately before it can rescind the contract. TRUE OR FALSE 12. A life insurance policy becomes incontestable only when the policy has been in force during the lifetime of the insured for a period of one year from the date of its last issue or of its last reinstatement. TRUE OR FALSE. 13. The issue of incontestability refers to whether or not the insurer may still prove that the policy is void ab initio because of concealment or misrepresentation of the insured or his agent. TRUE OR FALSE 14. The compliance by the insured with the terms of the policy is a condition precedent to the right or recovery. TRUE OR FALSE 15. Warranties, like representations, are collateral inducements into entering a contract. TRUE OR FALSE 16. A policy may declare that a violation of a specific provision thereof shall avoid it, which in effect converts an immaterial warranty into a material one. TRUE OR FALSE 17. In case of change of ownership of a motor vehicle or a change of the engine of an insured vehicle, there is always a need to issue a new policy because of the change of ownership. TRUE OR FALSE 18. In the settlement and payment of claims under the Compulsory Motor Vehicle Liability Insurance, the indemnity shall be availed of by the accident victim as restitution insofar as can be fairly ascertained. TRUE OR FALSE 19. Action or suit for recovery of damage due to loss or injury must be brought only before the Office of the Insurance Commissioner as the same has the exclusive jurisdiction over insurance claims. TRUE OR FALSE 20, “NO FAULT” indemnity refers to the compensation afforded the accident victim for his loss from the insurer of the party who caused the accident without regard to his contributory fault or the fault of the other party. TRUE OR FALSE 21. The party at fault must first be identified before the accident victim who is an occupant of a vehicle involved in an accident can claim no-fault indemnity from that party. TRUE OR FALSE 22. The Insurance Commissioner, unlike a court of law, is not bound by precedents. He is free to disregard ruling previously made by himself or by his predecessors. TRUE OR FALSE 23. The actual vehicle owner, and not the registered owner of a motor vehicle, is directly and primarily responsible for the consequences of its operation. TRUE OR FALSE 24. Contracts of adhesion are generally upheld as valid per se. TRUE OR FALSE 25. Without a stipulation in the insurance policy, an insurance company cannot claim subrogration in order to recover from the tortfeasor. TRUE OR FALSE 26. Upon the death of the insured resulting from a motor vehicle accident, the 2 TRUE FALSE TRUE FALSE FALSE TRUE FALSE TRUE FALSE TRUE RULES OF COURT FALSE TRUE insured’s beneficiary filed a claim under his life insurance policy. The insurance company after payment of the proceeds to the beneficiary, filed a claim against the party who caused the accident. The insurance company invoked its right to subrogation. The tortfeasor refused to pay the insurance company because it is not entitled to subrogation under the insured’s life insurance policy. Is the position of the tortfeasor RIGHT OR WRONG? 27. The proceeds of a life insurance policy maturing by death of the insured shall be paid within 60 days after presentation of the claim and filing of the proof of death of the insured. TRUE OR FALSE 28. Life insurance contracts must strictly follow a standard policy form to contain standard provisions on grace period, incontestability, etc. TRUE OR FALSE 29. No policy or contract of insurance shall be issued or delivered within the Philippines unless in the form previously approved by the Commissioner. TRUE OR FALSE 30. Under marine insurance, a warranty of seaworthiness pertains only to the condition of the structure of the ship itself that must be present at the commencement of the voyage. TRUE OR FALSE 31. Under marine insurance, the complete physical destruction of the subject matter as in the case of fire is essential to constitute an actual total loss. TRUE OR FALSE 32. Under marine insurance, abandonment is a right given to the insured only in cases of constructive total loss. TRUE OR FALSE 33. Under fire insurance, notwithstanding the fact that the alternation in the use or condition of the thing insured from that to which it is limited by the policy, does not increase the risk, the insurer is entitled to rescind the contract as it is a deviation from the terms of the contract. TRUE OR FALSE 34. If the fire insurance policy does not contain any prohibition limiting the use or condition of the thing insured, an alteration even though it increases the risk and is the cause of the loss, does not affect the contract of insurance. TRUE OR FALSE 35. In a fire insurance policy, the parties are not allowed to stipulate in the policy concerning the repairing, rebuilding, or replacing the buildings or structures wholly or partially damaged or destroyed. TRUE OR FALSE 36. In casualty (liability) insurance, the injured person’s right to sue the insurer of the party at fault depends on whether the contract of insurance is intended to benefit third persons also or just the insured. TRUE OR FALSE 37. In a contract of insurance, parties can freely stipulate the terms and conditions of the agreement. The insurance policy required that suit and final judgment be first obtained against the insured; that only “thereafter” can the person injured recover on the policy; its expressly disallows suing the insurer as a co-defendant of the insured in a suit to determine the latter’s liability to the third person. Which procedure to follow – that of the insurance policy or the Rules of Court provision aimed at avoiding multiplicity of suits? State your answer. 38. In case of suicide, the insurer in a life insurance contract shall not be liable if the act took place after a period of two years from the date of its issue or of its last reinstatement. TRUE OR FALSE 39. A life insurance policy may pass by transfer, will or succession to any person, whether he has an insurable interest or not. The assignee may recover the proceeds thereof. TRUE OR FALSE 3 TRUE TRUE TRUE TRUE FALSE FALSE TRUE TRUE FALSE TRUE FALSE 40. In a life insurance policy which contains an express waiver of the right to change the beneficiary, the insured cannot assign the policy to any person without the consent of said beneficiary. TRUE OR FALSE 41. Even if a contract contains all the elements of a contract of insurance, if the primary purpose is the rendering of service, it is not a contract of insurance. TRUE OR FALSE 42. A surety is jointly and severally liable with the insured but limited to the amount of the bond. TRUE OR FALSE 43. A life insurance policy is a valued policy. Unless the interest of a person insured is susceptible of exact pecuniary measurement, the measure of indemnity under a policy of insurance upon life or health is the sum fixed in the policy. TRUE OR FALSE 44. Insurable interest in property must exist at the time of the perfection of the contract, but not necessarily at the time of loss. Hence, an owner of a vehicle may still claim from his car insurance policy even if at the time of the accident, the vehicle was already sold to another party. TRUE OR FALSE 45. A general creditor has an insurable interest on the property of the debtor. TRUE OR FALSE 46. A mortgagor may take out insurance for the benefit of the mortgagee, where he pays the insurance premium, making the loss payable to the mortgagee. TRUE OR FALSE 47. A change of interest in a thing insured, after the occurrence of an injury which results in a loss, does not affect the right of the insured to indemnity for the loss. TRUE OR FALSE 48. The beneficiary must have an insurable interest in the life of the assured. TRUE OR FALSE 49. An “all-risk” insurance policy covers all kinds of loss but not those due to willful and fraudulent act of the insured. TRUE OR FALSE 50. The consent of the husband is necessary for the validity of an insurance policy taken out by the wife on his own life and those of their children. TRUE OR FALSE TOTAL NUMBER OF POINTS: 50 NOTHING FOLLOWS 4
