insurance finals- dean sundiang

8/11/2019 Insurance Finals- Dean Sundiang

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MIDTERMS SAMPLEX (ACADS 2009 - 2010)EXCLUSIVE COPY OF

LAMBDA RHO SIGMA SORORITYAND

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

CONTROL #: _______________

GRAND NABIL MUTIA GRAND ARCEE SANTIAGO

ACADEMIC COMM. HEADS: DAVIN DAYAN (LRB) GENEVIEVE SEVIDAL (LRS)

MEMBERS: JHONY MARTIN ALBA* LESTER TAMONDONG

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. Dont tear off any pageof 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 theseinstructions and the rules of mechanics of taking examinations. GOOD LUCK.

I. Discuss briefly: (15 points)

(a) The contract of adhesion or fine printrule.

(b) The principle of utmost good faith.

(c) The principle of subrogation.(d) The principle of indemnity.

(e) Insurable interest in general.

II. 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 ofcompetent 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 forhis own interest inure to the benefit of the other?


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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 otherinsurance 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 likewisesecured 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.

QUESTIONS:1. May Libre recover on the insurance/s? If so, from whom and to what extent?

2. Assuming that the factory was destroyed by an earthquake, an excluded peril, one monthafter 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 anddesignated 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 hewas 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 childrens life, will such an assignment be valid?

V. (15%)

One of the passenger buses of Mabilis Transport Company figured a collision with aprivate 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 vehicleliability 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?


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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 vehicleswere extensively damaged. The insurer refused to pay and raised the following alternative

defenses, to wit:

1. That the policy is void, the insured being a minor.2. That the accident was caused by the negligence of the insured.

3.

Even assuming that the insurer is liable, its liability should only be proportionatebecause Romeo is a co-insurer.

Rule on each of the said defenses with reasons.

-END-

NO BOOKLET WILL BE CORRECTED WITHOUT THIS QUESTIONNAIRE

insurance finals- dean sundiang

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