Insurance Finals- Dean Sundiang

MIDTERMS SAMPLEX (ACADS 2009 - 2010) EXCLUSIVE COPY OF

LAMBDA RHO SIGMA SORORITY AND LAMBDA RHO BETA FRATERNITY. (SHARING AND REPRODUCING WITHOUT CONSENT IS STRICTLY PROHIBITED.)

CONTROL #: _______________

SAN BEDA COLLEGE OF LAW Dean Jose R. Sundiang Finals INSURANCE (S, B. C) Instructions: Write legibly. Answer the questions sequentially. Start every answer to main problems or questions on a separate page. Observe proper margins. Don’t tear off any page of your booklet. All answers must be supported with reasons. A mere yes or no will not be given any credit. Corresponding deductions shall be given for any violation of these instructions and the rules of mechanics of taking examinations. GOOD LUCK.

I.

Discuss briefly: (15 points) (a) (b) (c) (d) (e)

II.

The “contract of adhesion” or “fine print” rule. The principle of utmost good faith. The principle of subrogation. The principle of indemnity. Insurable interest in general.

Answer the above questions on the basis of the assigned cases. (30 points) 1.What do the terms accident or accidental mean in insurance? 2.How is a contract of insurance perfected? 3.What do you understand by the “authorized driver clause”? 4.Is the insurer solidarily liable with the insured? 5.Is good faith a valid defense in concealment? 6.Where an insurer issues a non-medical life insurance policy, is the right to communication deemed waived? 7.What do you understand by the incontestability clause? 8.When may a third person sue the insurer directly? 9.What is the extent of the liability of an insurer under an open policy? 10. Where the insured filed a petition for reconsideration after the rejection of his claim by the insurer, when should the right to file a claim with the Commissioner or a court of competent jurisdiction commence to run?

III.

To secure the payment of a loan of 3M, Donato, the debtor, constituted a real estate mortgage on his house and lot in favor of Canuto, the creditor. The house is worth 4M. QUESTIONS: (10 PTS) 1.

Who may insure the house and for how much? 2.Will an insurance procured by either the mortgagor or mortgagee in his own name and for his own interest inure to the benefit of the other? GRAND NABIL MUTIA – GRAND ARCEE SANTIAGO ACADEMIC COMM. HEADS: DAVIN DAYAN (LRB) GENEVIEVE SEVIDAL (LRS) MEMBERS: JHONY MARTIN ALBA* LESTER TAMONDONG

MIDTERMS SAMPLEX (ACADS 2009 - 2010) EXCLUSIVE COPY OF

LAMBDA RHO SIGMA SORORITY AND LAMBDA RHO BETA FRATERNITY. (SHARING AND REPRODUCING WITHOUT CONSENT IS STRICTLY PROHIBITED.)

CONTROL #: _______________

Libre, under an insurance policy, made an express warranty that while the insurance was subsisting, he will not use the factory premises for any other purpose and that no other insurance on the factory was subsisting at the time the insurance policy was taken. While the police was in effect, Libre undertook a renovation of a portion of a factory which he intended to use for a boutique in which he can sell his export overruns. Libre likewise secured additional insurance with another insurer on the same property for P10 Million. The factory was subsequently destroyed by fire which started at the portion being renovated.

1. 2.

QUESTIONS: May Libre recover on the insurance/s? If so, from whom and to what extent? Assuming that the factory was destroyed by an earthquake, an excluded peril, one month after the issue of the first policy and before the fire occurred, may Libre demand the return of premiums?

IV.

(10%)

Anselmo insured the life and health of his three minor children for P2 Million each and designated himself as sole beneficiary. Coming home late one night from a party, where Anselmo had drunk more than his usual, he run over one of his insured children while he was entering their garage. Charged with the death of his child, Anselmo pleaded guilty. QUESTIONS: 1. May Anselmo recover on the insurance on the life of his child who died? 2. Assuming that before the accident happened, Anselmo assigned to his mistress the insurance on his children’s life, will such an assignment be valid?

V.

(15%)

One of the passenger buses of Mabilis Transport Company figured a collision with a private car. Both drivers were established to have been negligent. Among those injured were a passenger, the bus conductor, the car driver and the pedestrian. QUESTIONS: 1.

Who among the injured party may recover under the compulsory motor vehicle liability insurance of Mabilis Transport Company? 2. Assuming that the passenger was able to recover under the “no fault indemnity” clause of the insurance of the bus operator; may he likewise recover on the compulsory motor vehicle liability insurance of the car owner? 3. Assuming that the passenger was able to recover under the “no fault” insurance clause; can he still bring an action against the bus operator and the car owner for damages arising from his injuries? GRAND NABIL MUTIA – GRAND ARCEE SANTIAGO ACADEMIC COMM. HEADS: DAVIN DAYAN (LRB) GENEVIEVE SEVIDAL (LRS) MEMBERS: JHONY MARTIN ALBA* LESTER TAMONDONG

MIDTERMS SAMPLEX (ACADS 2009 - 2010) EXCLUSIVE COPY OF

LAMBDA RHO SIGMA SORORITY AND LAMBDA RHO BETA FRATERNITY. (SHARING AND REPRODUCING WITHOUT CONSENT IS STRICTLY PROHIBITED.)

CONTROL #: _______________

VI.

(15%)

Romeo, eighteen years of age, insured his car under a comprehensive policy with Ragal Insurance Company, for P400, 000.00, although the car was worth P600, 000.00. While Romeo was driving the insured car, he hit from behind a parked taxi. Both vehicles were extensively damaged. The insurer refused to pay and raised the following alternative defenses, to wit: 1. 2. 3.

That the policy is void, the insured being a minor. That the accident was caused by the negligence of the insured. Even assuming that the insurer is liable, its liability should only be proportionate because Romeo is a co-insurer. Rule on each of the said defenses with reasons.

-ENDNO BOOKLET WILL BE CORRECTED WITHOUT THIS QUESTIONNAIRE

GRAND NABIL MUTIA – GRAND ARCEE SANTIAGO ACADEMIC COMM. HEADS: DAVIN DAYAN (LRB) GENEVIEVE SEVIDAL (LRS) MEMBERS: JHONY MARTIN ALBA* LESTER TAMONDONG