Insurance Recit Questions

8/13/2019 Insurance Recit Questions

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June 28,2012

1.What is a contract of insurance?

2.What are the Functions of insurance?

3.As regard to contract of surety?

4.What is meant by doing an insurance business?

5.What are the characteristics of an insurance contract?

1) Aleatory- arises only upon the happening of an eent

2) !ontract of adhesion or fine print rule " terms does not necc. #ean that

there is mutual agreement because the terms hae already been

proided by the insurer

3) !onditional

4) $ersonal " insurance cannot be delegated.

5) !ompensatory

6) %is& distributing deice

7) !ontract of indemnity

'. When is a contract of insurance deemed e(ecuted? )(ecutory?

A* e(ecuted after payment of premium

+. What is ,berrima Fides?

. What is the 2-flod purposefunction?

A*a/ distributespread the e(pected losses among planholders upon the

happening of an eent.

b/ indemnify the insured from the happening of the lossdamage.

0. !ontruationinterpretation of the contract?

A* if clear " should be interpreted according to ordinary meaning.

if ambiguous " strictly against the insurer liberally in faor of the insured

1. What are the elementsreuisited?

8) nsurable interest must e(ist


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9) %is& of loss

10)Assumption of ris& ta&en by the insurer

11)$ayment of a premium

12)cheme of distribution of losses

11. What may be insured? 6definition ec.1/

12. What may not be insured?

July 05 session

7uestions*

13)What is an insurable interest?

14) %ule on the insurance ta&en on a married 8oman? What is reuired?

15)Who are the parties to an insurance contract?

16)Who can be an insurer? What is reuired to be an insurer? %elate to

sec.' 9itle 3 to sec.'

17)When is there insurable interest?

18)ec.1

19):oes a :ebtor hae an insurable interest on the life of a creditor?

6 sec.1subsec. !/

20);ice ersa?

21)


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mortgagor?

26)=o8 about the common carrier? :oe she hae an insurable interest on

the life of its passengers?

27)What is a beneficiary?

28)Who can be designated as a beneficiary in a life insurance?

29) f the policy is ta&en on the insured on his o8n life? 6see proision/

30) s it necessary or reuired that a beneficiary must hae an insurable

interest on the insured? $olicy ta&en of the insured on his o8n life.

A>mam/ if the policy is ta&en by the insured on his o8n life the

beneficiary many not hae an insurable interest on his o8n life

anybody can be a beneficiary.

31) f the policy is ta&en by a 3rdparty not the insured on the life of the

insured the 3rdparty designates himself as the beneficiary is it

necessary that the 3rdparty must hae an insurable interest on the life

insured.? 6discussion on the life and health of the insured/

Ans>mam/ 3rdperson must hae an insurable int. at the time of the ta&ing of

the policy. 3rdperson must hae insurable interest

1+. Who are those persons 8ho are disualified to be beneficiaries.

1.9hose persons 8ho are guilty of A or !

2.9hose persons 8ho are guilty of A or !

3. those made to a $.


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the policy.6e(cept as to the beneficiary?/

July 06, 2012 meeting

32)#emorie sec.1

33)9he beneficiary may not hae an insurable interest on the life of the

insured. Anybody can be a beneficiary 8hen the insured has ta&en a

policy on his o8n life.

34)3rdperson must hae insurable interest on the life of the insured at the

time the policy is ta&en

35)Who are those persons disualified as beneficiaries

36)Why are those persons enumerated disualified as beneficiaries in alife insurance policy. n essence life insurance policy is li&e a donation

in so far as the beneficiary is concerned. Founded on the same

consideration liberality a beneficiary is li&e a donee because from the

premiums from the policy 8ill be receied by the same. $rescription in

Art. +30 restrictions shall eually operate in a life insurance policy.

9hose mentioned shall be disualified as donees. A person 8ho cannot

receie donations cannot be named as benef. n the life ins. $olicy of

the person 8ho cannot ma&e donations.

37)>arry 8as married to !ita later on !ita 8as conicted of the crime of

adultery and subseuently >arry and !ita diorced. >arry married!armen. $rior to the diorce >arry insured himself and named !ita as

beneficiary. After diorce!an larry compel the insurance company

change his irreocable beneficiary in his insurance policy from !ita to

!armen?

#* What is the reason 8hy in this case you cannot reo&echange the

name of the beneficiary?

!ase of @erardo @ercio. " property interest in the policy cannot

reasonably be said to13* of session

38)>arry 8as married to !ita they hae 2 children !arlo and >ita. >arry

had an affair 8ith )a and out of this affair came out %ose and earl.

:uring his lifetime >arry insured himself and design );A %ater on >arry died and )a 8as the suspect of the

&illing of >arry !ita leg. Wife of larry filed a claim on the proceeds of


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the insurance policy. s the insurer obligated to turn oer the proceeds

of the insurance of larry to !ita !arlo and >ita considering that they

are the leg. =eirs of larry? Why? Who are the beneficiaries?

a.f )a is disualified? Would if mean the proceeds of the insurance

automatically go to?A* principal accessory accomplice. 9he proceeds should go to !ita

!arlo and %ita

39)=o8 much? Apply the rules of succession? s the designation of those

under 8ho are illeg. !hildren of >arry to )a be alid designation? =o8

are you going to diide the proceeds of the insurance policy.=eirs of

>oreto #aramag " 2ndto the last case.

40) s the insurance obligated to turn oer the proceeds of the policy ? Co.

9hey are not named. Cot designated beneficiary.

)a? Cot entitled disualified.

41)What 8ould be the share of carlo and rita of the proceeds of the

insurance of their father. !arlo and %ita? 9hey are not the designated

beneficiaries.


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the mortgagor has ta&en an ins. inda be coered ho8 much can they recoer?

A* Cora can recoer +5& >inda " 5&.

a/fnora refused to pay 5& 8hen the house is already burned 8hat8ill happen? EG ta&es the place of >inda. ubrogated to the interest

of >inda. >inda 8ill not collect from Cora.

#* to summarie* if mortee insures the property mortgaged and pays

the premium in case of loss mortgagor 8ill pay the insurance company

debit. f mortgagor insures the prop. and pays the premium and

assigns the ins. 9o mortgagee the debt is considered paid. f

mortgagor insures the prop. pays the prem. Dut did not assign the

insured. 9o the mortgagee the mortgagor still has a debt to pay the

mortgagee.

July 12, 2012


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48):istinguish insurable interest in life from property.

a/ 8hen should it e(ist

b/ as to beneficiary

c/ as to limit of the amount

A* a/for life " unlimited prop " insurable interest -only to the e(tent

of the amount insured b/ e(istence " life " must e(ist only policy is ta&en. prop " only

e(ist 8hen lossdamage happens and 8hen it is e(ecuted

c/ beneficiary " prop " must hae ins.int oer the prop. insured

6 life " no need to hae insurable int. on his life.

49) s itpossibl. !ompuls. =eir has an ins. nt. on the property of the

testator during the lifetime of said testator " imong papa buhi pa

you comp. heir do you hae an ins.int. oer the property.

A* Co comp. heir has no e(isting int. oer the prop. of the testator

8hile he is still alie.

50)What is a general !reditor? A* loans money 8ithout any collateral

51):oes a general cr. =ae an ins. nt. oer the prop. of his debtor?

A* bac& to 3 definitions. Co he is not the o8ner. As to the debt he

has an insurable interest but not to the property.

#* none insur. int. oer prop. from the definition coering the

insurable property in general. of debtor.

52):ebtor ins. nt. oer the property of the creditor ? =o8 about the

health of the creditor?

A* none oer both. When cr. :ies debt is e(tinguished.

53)#* change of interest 6simplified/ 6sec.2 -25/

!hange of int. in any part of the thing insured unaccompanied by

a change in the interest in the insurance suspends the insurance to

an euialent e(tent until the interest in the thing and the interest

in the insurance is ested in the same person.

@o bac& to the first distinction in ins. n property

)(ceptions* in case of life health and accident insurance

When a change in interest results after the occurrence of an inHury

8hich results in a loss

!hange in interest in 1 or more seeral distinct. 9hings separately

insured by 1 policy change in the int. by 8ill or succ.


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of the insur.interest passes to the heirs. Cot to be confused 8ith

#aramag case 6 deals 8ith beneficiaries/

9ransfer of int. by 1 or se.partners Hoint o8ners 6sec.24/

6sec.25/

54)What is a standard union mort. !lause 6 definition/

A* standard or union " incorporation in an ins. $olicy leads to the

creation of a sep. contract bet. 9he insurer and the

mortee.)mpo8ers the mortee. 9o collect payment from the insurer

een if the policy is oid or oidable 8ith re to the mortor.

55)osspayable clause designates the person as abenef.


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life of the person insured.

59)A piece of prop. under usufruct 8hich he is a usufructuary. :oes the

insured person hae an insurable interest on the piece of property

of 8hich he is a usufructuary. 6ec.1/

60),p to 8hat e(tent?

A* yes becausehe has an e(isting int. through a beneficial title.


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'/=o8 about if there 8as already an application but before the

effectiity of the policy is there a need for the insured to comm. 9he

mat. Fact acuired after the app. =as been made?

A* if the mat. Fact has been ac.after the eff.


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ec.20*

11/ When is the insurer estopped or hae 8aied the right to resc. F) A,%AC!) !A) . !A

13/ What is misrepresentation?

14/ orna insured her o8n life naming her bf Hose as

her irre. Deneficiary. nsurer physician conducted a physicale(amination but 8as not able to detect lornaJs cancer. C gf she did

not disclose the fact that she pre. consulted an oncologist because

fortune tellers told her she 8ill not die of cancer.


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JULY 19, 2012 Re!esentation " #a!!anty

64)What is %epresentation?65)What are the &inds of %epresentation? 6Affirmatie and $romissory/

66)When is it Affirmatie? When is it $romissory?67)%epresentation may be oral or 8rittenL made before or at the time of

the issuance of the insurance policy.68)What is false representation or misrepresentation?69):istinguish !oncealment from #isrepresentation.

70)!an it be altered or 8ithdra8n before the issuance of the policy? =o8about after the issuance?

71)#r. 9 insured his 1-storey building. At the time he applied herepresented that there is no lessee. At the time the policy 8as issuedthe lease contract has e(pired and there is no more lessee in thepremise. !an the insurer rescind based on misrepresentation? 6Co.

nsurer can no longer rescind based on misrepresentation since thething represented has already become true at the date of the issuanceof the policy./

72)What is the effectconseuence of representation? When can the partyrescind? 6ec. 45/

73)What are the e(ceptions that the misrepresentation entitles the insurerto rescind at the time the representation becomes false? 6When insureraccepts payment of premium and 8hen incontestability clause appliesin case of life insurance./

74)!an the insurer still rescind based on misrepresentation after an actionhas been commenced? 6ec 4 " prior to the commencement of anaction/

75)What is an ncontestability !lause?76)What is a Warranty?77)What are the &inds of Warranties? 6Affirmatie $romissory )(press

mplied/78)What is the effect of a breach of 8arranty? With or 8ithout fraud? s

fraud essential?79)ec. +4 is-M-is ec. +' 6@ipa-read lang ni Atty. Caduma sa nag recite

hehehe then she stated* #ere iolation under ec. +4 een 8ithoutfraud entitles the party to rescind 8hile in ec. +' inoles breach8ithout fraud " merely e(onerates insured from the time it occur or8here it is bro&en in its inception./

80):istinguish Warranties from %epresentation81)2 Binds of !ondition to an insurance contract* !ondition $recedent and

!ondition ubseuent.

JULY 20, 2012 $olicy " $!emium

82):eices used 6:idnJt here the first parts &ay putol only got theenumeration/* 1/ !oncealment 2/ Warranty 3/ )(ception 4/


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%epresentation 5/ !onditions

83)What is a policy in insurance? 6ec. 40/84)What are the basic contents of a policy? 6ec. 51/85)Who signs the insurance policy? 69he insurer or his authoried agent/86) s the insured reuired to sign in all &inds of policies? 6Co. !ountersigns

only in %iders Warranties !lauses and )ndorsements e(cept 8henmade or applied for by the insured or o8ner for himself./

87) s a policy necessary for the perfection of the insurance contract? Whatis reuired for the perfection of the insurance contract? 6Approal ofapplication and payment of premiums prefects the contract ofinsurance./

88) s the representation of insurance policy necessary to recoer from theinsurance? 6@eneral %ule* $olicy need not be presented )E!)$9 inNAtty. Caduma* %ead !ase O21 -Asian 9erminals and !ase O1-#alayan nsurance !ase/

89)What is a coer note?90)What is the effect if insurer issued a coer note?

91)What is the life span of a coer note? What are the rules on coernotes? 6;alid for ' days after 8hich a regular policy is issuedL butmay be e(tended by nsurance !ommissionerL Co separate premiumon coer noteL can be cancelled by either party upon notice 8ithin +days before its e(piration./

92)What is a %ider? What is a !lause?93)What are the &inds of $olicy? )(plain each. 6


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AD! correct? 6Co. the condition is oid for being against public policyfor it hinders transfer from 1 person to another after the loss occurred "8hen the liability of the insurer is already fi(ed.

103) What if E assigned it to B> agent of the insurer is theassignment alid? 6ec. 1+3? 9ransfer to anyone 8ho acts as agent ofthe insurer is oid as it may affect the creditors of the insured./

104) What is pro(imate cause?105) What is remote cause?106) When is the insurer liable to pay for the loss? 6f peril insured

against is the pro(imate cause. P ec. 5/107) !ase* Iuan insured a big e(pensie aseHar against fire. :uring

a fire that occurred in the neighborhood IuanJs house 8as also guttedby the fire. 9he Har 8as lifted and brought outside to sae it from thefire but then it got bro&en. !an heclaim the insurance een if damage8as not due the fire? 6es. ec. 5 " in the course of rescuing it fromthe peril insured against " from the fire./

108) What if the fire8all of IuanJs neighbor collapsed due to the fire

and fell into his house? 6till liable pro(imate cause is fireL 8all thatcollapsed is the immediate cause./109) uppose it happened 2 months ago and that the fire8all of the

neighborJs house 8as 8ea&ened is the insurer still laible? 6Co. Firealready a remote cause./

110) What if damageinHury to IuanJs furniture 8as due to the heayhosingspraying of 8ater by the fireman to sae his house from fire?6till liable " in the course of rescue./

111) What if during the fire a golden Duddha 8hich 8as also insured8as stolen by a thief? 6>iable unless loss by theft is an e(cepted peril/.

112) When is the insurer not liable for loss? 6ec. +/113) What are the 2 conditions subseuent in order that the insured

may be entitled to the proceeds of the insurance? 6Cotice of >oss and$roof of >oss/

114) When should notice of loss be gien to the insurer?115) What is the effect is the effect if insured failed to notify the

insured? What are the e(ceptions? 6nsurer is e(onerated e(cept 8hendelay 8as due to insurerJs act and 8hen insurer does not obHect to it./

116) What is :ouble nsurance?117) What are the reuisites of double insurance?118) s double insurance prohibited? 6Co unless other8ise stipulated

in the insurance contract.119) What is N


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%U&U' 9, 2012 .ases/

125) R:D$ $ool s. %#CS AD! !o. insured its facilities against fire 8ithEG nsurance !o. @A%:)C !aseS @reen >and #emorial $ar& enteredinto a !reditor @roup >ife nsurance 8ith Am>ife to insure its client 8ho

purchased burial lots from it on installment basis 8hich shall beeffectie for 1 year and rene8able on yearly basis. Am>ife compliedand submitted all the res. to Am>ife. ife denied claim contending that the application 8asdenied. s Am>ifeJs inaction to the application euialent to disapproalof the same? 6Co. Am>ife if liable. ts action should not preHudice theinsured. 9he proisions of the policy are ambiguous hence must beconstrued in faor of the insured and strictly against the insurer./

128) R$%,:)C9A> >F)9rans-Asia !aseS 8eet >ines insured itsessel #; !:< against fire 8ith $rudential >ife for $4. Whilethe policy 8as in force fire bro&e up 8hile #; !:< 8as undergoing

repairs at the port of #anila. $rudential denied its claim contendingthat 8eet >ines breached the policyJs 8arranty of maintaining theessel in a certain !>A and that the !>A D) #AC9AC):. :ue to8eet >inesJ failure to submit that #; !:< 8as class maintained$rudential rescind the contract. s $rudential correct? 6Durden of proof8ith the insurer not the insured. nsurer must proe its defense as tothe denial of the claim. Atty. Caduma mentioned the N$ayment ofnterestQ " that insurer shall be liable :) the legal interest* 12(2T


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24U.

129) R9AC s. !AS !hung applied for insurance 8ith @repa>ife 8ith theamount of $ 8hich 8as approed on Co. ' 21. =is children@abby and haron 8ere the beneficiarieds.

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