Sati’ contention valid? Exped GS) Ran Stashrite i correct in refusing to give payment to BX with regard to the property insurance but not to the life insurance. P*7™ me Ineurable interest is the interest which the law requires the owner of an insurance Policy to have in the person or thing insured. It coraints in the interest here tee coil EEIVS Becunlary benefit or advantage from its preservation and will ulfer pecentiry Joss or damage from its destruction, {The beneficiary in the property insurance policy or the assigns thereof must have insurable interest in the property insured. BX, 4 mere friend-companon ot Ie hee ne insurable interest in the residential house of IS. BX to not entilad toteeeioe ihe grrr + {om 18's insurance on his property. As to the insurance coverage on the life af i BX io Eiitled to recive the proceeds. There is no requirement that BX should have beursbie interest in the life of IS: It was IS himself who took the insurance on his own hile, = saecBX may collect the life insurance proceeds bul cannot on the insurance on the 4 esidential hotise sold by 1S. 0 A. Considering the importance of delivery to the perfection of a Gentract of insurance, is: Salva tthe ope a onsen ey Sanyo ase Sscrcerececanrrscceeooe 1 oa ocd ts lad Sela is ob usher tstabiat BX may collect the life insurance proceeds but cannot on the insurance on the residential house sold by 1S. cover note thereby covering Mr. Magulang against the designated risks, hazards and perils. Under the law, even without the policy being given to the insured by the insurance provided a cover note has been issued by the insurer. = Hence; Mr, Magulang should be indemnified by the insurer. vL Ramos mortgaged erty with ABC Bank. He took an insurance on thisPenis Unaer ine law, even winndut tne poucy oe sven wo te ward ne a overs by the insurance provided a cover note has been iasued by the insure, Hence, Mr, Magulang should be indemaified by the insurer. ML Mr. Ramos mortgaged his property with ABC Bank. He took an insurance on this Property and assigned the proceeds exclusively with the mortgagee bark. Mr. Ramen ‘creditors sought to attach the policy and Mr. Ramod’ interest in the property. Rule. (10%) Answer: The creditors of Mr. Ramos cannot have the policy attached. Unider the Law and jurisprudence, an owner of a property may have the same mortgaged to a creditor, The property mortgaged operates asa security of the loan 4 oblained and the mortgagor continues to be the owner thereof and retains possession. Ly the same vein, the law permits insurance of properties mortgaged. A mortgagor has an existing interest in the property until after the foreclosure but belore the end ofthe period ‘of redemption. Thus, it is provided that unless the policy otherwise provides, where & ‘mortgagor of property effects insurance in his own name providing that the loss shall be payablejto the mortgagee, or assigns a policy of insurance to a mortgagee, the insurance is deemed to be upon the interest of the mortgagor. Hence, in this case, , the settlement of the obi assignment& redemption, [hus its provided that unless thé poy olherwmse proves, where monger af reper cs rnin wn me roving al ayable tothe morigage, or asigne a policy of insurance fo a mortgagee he insurance is deemed to be upon the interest of the mortgagor. woes Hence, in this case, the policy merely to afford the mortgagee greater security for the settlement of the obligation and should not be construed as payment. By such assignment, the mortgage indebtedness is not extinguished until such time that the proceeds of the policy have been collected after the occurrence of the lows, Mr. Ramos “elains an existing interest where the proceeds are assigned to the mortgagee. To do ‘otherwise will be against public policy vi “The policy provided that no suit or action thereon “for recovery of any claim shall Ps sustainable in any court of law or equity unless the insured shall have fully complied ‘with all the terms and conditions of the policy nor unless commenced within twelve Tronths next after the happening of the loss” Interpret this provision in accordance with Sec. 63 of the Insurance Code. (10%) Answer: “The stipulation is void for violation of Sec. 63 of the Insurance Code: Gok 6 of the Insurance Code provides that any condition, stipulation. <= + agreement in any policy of insurance limiting the time for commencing an *t00 4 thereunder to a period of les than one year (rom the ime when the uss of action! acernes is void, ‘since the stipulation slated that recovery must be commenced within twelve months nea after the happening of the loss isa period less than one year from sccr=al of the cause of action, the same is void for violation ofthe insurance codeSee et Since the stipulation slated that recovery must be commenced within twelve months next after the happening ofthe loss is a period less than one year from accrual of the cause of action, the same is void for violation of the insurance code. vm. Insurer DEF Company desires to cancel the fire insurance of Mr. Gomez because of 2 discovery of material representation. What conditions must exst under which this right may be exercised? (10%) Answer: No policy of insurance other than life shall be cancelled by the insurer except upon prior notice thercof to the insured, and no notice of cancellation shall be effective unless it is based on the occurrence, ater the effective date of the policy, of one or more of the following: (a) non-payment of premium; (b) cofwiction of a crime arising out of acts increasing the hazard insured against; (€) discovery of fraud or material # —misrepresentation; (4) discovery of willful or reckless acts or omissions increasing the hazard insured against; (¢) physical changes in the property insured which result in the property becoming uninsurable; or (0) a determination by the Commissioner that the PeLintation of the policy would violate or would place the insurer in violation of this Code 5 f = ‘A tease ineured st Eh 2 million to “The actual value of the fe rhe ‘Apowe mae: eee of the property Ee A. 1 the house is insured with an open policy, how much is the insured entitled to receive Under the policy? ©) ‘open policy is one in which the value of the thing inured is not agreed Upon Tout tn a ae etined in case of lone Under thi typy of policy the insured sentitied TRE IIRIES Stacimnineal that may be los than but not to exceed 72.000,000.09. } - : Do sere ee a oper under vane eg rs ch at nae ei encore wets eS ealnewer: An open policy ison in which the vale of he but is left to be ascertai Unsere ined in case of loss. Under this type of policy, the insured is entitled o exceed #2,000,000.00 B. If the house is insured under a valued policy, how much is the insured entitled to receive in case the property is tolally destroyed? (5%) Answer: A valued policy is one which expr insured shall be valued at a specific aum. Under this type of po to réceive 2,000,000 00. x I jkababshala Company insured Mr. Karame’s property against fire for a period of five © years commencing January 1, 2005 until December 31, 2010. renew the policy for ané I the insured wants to ther term, what is the basic act that will shiow this? Ifthe insurer does not want to renew the policy, what should it do? (10%) 1B. If the house i intured under a valued policy, how much is the insured entitled to receive in case the property is totally destroyed? =) insured shal be valued {0 recede #2,000,00000. specific sum Under this type of policy, the meured ts entiied Nakababahala Company insured Me. property epeinet fire for = parted of Sw © years commencing january 1, 2005 until December 31, 3010. the inured wants fo Sencvr the policy for smother ters. what ia the basic act Uhat will show Uhin? If Uhe nearer ‘docs not want tp renew the policy. what should it do? (OX) If the insured wants to renew the policy, he will jst have to pay the premissm ad the insurer will have te acoepl such peyment Ihe nourer doce not want to ranew the policy, he needs to pive notice in writing BONUS QUESTION:the insurer will have to acept such payinent) fee If the insurer does not want to renew the policy, he needs to give notice in writing to the insured of the intention not to renew the policy BONUS QUESTION: ‘You may choose not to answer this question. If you get to answer this question correctly, 10 points will be added to your raw score. If your answer is wrong, it will not affect your rating. ‘Question: What was the first insurance company to introduce life insurance in the Philippines? . Answer) Sun Life Assurance of Canada. « : poo