INSURANCE 3. Do you have insurable interest over your fiancé?

Atty. Efren Vincent M. Dizon 4. Do you have insurable interest over the life of the mortgagor/creditor?
*Intel from 2I, 2S, 2B, 2E, 2F, 2G, and 2J (AY 2017-2018) and intel from last year (AY 5. Explain insurable interest over property.
2016-2017) 6. You bought an apple for ₱25. Do you have insurable interest over it?
a. How about the seller?
General Provisions (Secs. 1-2) b. How about the unpaid seller, assuming you have not yet paid for it?
1. What is insurance? c. What if it got lost?
2. What does “doing an insurance business” mean? d. What if undelivered?
3. How does insurance work? e. What if your future boyfriend delivered it?
4. Is the premium lower than what you’ll get? f. You bought the apple for ₱25 and sell it for ₱40, how much is your insurable
5. Elements of insurance. Explain each. interest?
6. Who assumes the risk? g. You plant the seed from the apple. The tree grew and produced several
7. Characteristics of insurance. Explain each. baskets worth of apples. You sell it for ₱5000. How much is your insurable
interest?
Chapter I. The Contract of Insurance 7. You bought 3 mangoes for ₱15 each: 1 for you to eat; 1 to sell for ₱20; and 1 to
Title 1. What May Be Insured (Secs. 3-5) be planted and your expected harvest is 30 baskets worth ₱5000.
1. What may be insured? a. Do you have insurable interest (explain for each mango)?
b. How much is the insurable interest? To what extent?
Title 2. Parties to the Contract (Secs. 6-9) c. Can you insure profit?
1. The class will each give 1 peso, the proceeds of which would go to whoever fails d. Will your answer be the same if there is a potential buyer?
the class. Is this an insurance contract? e. What if you ordered the mangoes through phone, does the seller have
2. Contingent event vs. unknown event. Explain each and give examples. insurable interest? The buyer (you)? The carrier?
3. Can you insure lottery? f. How much is the insurable interest? To what extent?
4. How about the lottery ticket? 8. State Sec. 14.
5. Insurance vs. gambling. 9. Distinguish life and property insurance
6. Who are the parties to an insurance contract? 10. Wife insured the life of her husband. Then, they had an annulment. Thereafter,
7. Who is an insurer? the ex-husband died. Can the wife collect?
8. Who may be insured? 11. You insured a property under your name. Then, you sold the same to your
9. BF and GF deposited with a bank 10k. The person who would not break up with neighbor without endorsing the insurance. In case of loss, can you collect? Can
the other gets the 10k. Is it a contract of contract insurance? the neighbor?
10. A Filipino insures with a PH insurance company his house located at Japan. 12. With respect to the effect of a change of interest in any part of a thing insured
Japan and PH subsequently declared war with each other. The property was unaccompanied by a corresponding change in the insurance, what is the general
destroyed. Can the insured collect the proceeds from the insurer? rule and what are the exceptions?
11. Who is a public enemy? a. Give an illustration.
12. Can a public enemy be insured? Reason. 13. Supposing you are a co-owner of a business and you insured the assets of said
13. Explain the 3 rules (Connecticut, New York, US). business. During the life of the policy, you assigned half your shares to a new
14. Can a public enemy be a beneficiary? partner and the other half to the existing partner. Who may collect: you, new
15. What will happen to the insurance in case of a public enemy? partner, or existing partner?
16. Are there other parties, aside from the insurer, insured, and the beneficiary that 14. Supposing you have a business with 4 partners and you alone insured all the
will be affected by the insurance contract? incidents of the business. A year after, you sold 10% of your shares to one of
17. What is the extent of the insurable interest of the mortgagor and mortgagee, your partners, another 10% to your relative, and another 10% to a third person.
respectively, over the mortgaged property? Then, the company building caught fire and you died in that accident. Heirs sold
18. What is the reason for the extent of the mortgagor's interest? the scraps from the fire. Who can recover?
19. Can they be simultaneous? a. Can the junk shop collect?
20. Would it depend on the kind of clause? 15. You have insured car. It crashed and you died. Your heirs decided to sell the car.
Who is entitled to the proceeds: heirs, buyer, or no one?
Title 3. Insurable Interest (Secs. 10-25) 16. You are a key employee from a company. They insured your life. You were lent
1. State Sec. 10. a company car, with the ownership thereof remaining with the company. While
2. Do you have insurable interest over your brother/sister?

TRAX | 2I | 1718 1
 going to a company related activity, you had an accident and died. Can your
family collect from the company?
a. Can the company collect from you?
b. If the accident happened after you retired, can the heirs still collect the
proceeds?
17. A bought a car from you. It got into an accident. It was not fully paid. Who can
collect?
18. A and B went on a date. A promised to pay. However, it was B who paid. Can B
insure A’s life?
19. A engaged the services of Freddie Aguilar to sing during his date. Can A insure
the life of Freddie Aguilar?
a. Will it matter if A already paid Freddie Aguilar?
20. Freddie Aguilar pawned his guitar to Cebuana. Can he insure the guitar? Can
Cebuana insure the guitar?
a. Up to what extent, assuming that the guitar is worth ₱50K and the loan is
worth ₱30K?
b. Can Freddie Aguilar insure his finger?
c. Can Freddie Aguilar’s wife insure his finger?
d. Supposing the marriage was already annulled. Then, Freddie Aguilar’s
finger was severed. Can his ex-wife collect?
e. Supposing Freddie Aguilar has an out of town gig. It turns out that the
organizer would not provide the guitar. So, Freddie gave his friend money
to get the guitar back from Cebuana. His friend then delivered the guitar
from Cebuana to the venue of the gig via bus. Can Freddie, Cebuana, the
friend, and the common carrier insure the guitar?
f. How about the organizer?
g. In case of loss, how much can each recover?
h. Freddie Aguilar, expected that the tickets will be sold out at the time of the
concert (the aggregate amount of which would be ₱1M). as of now, 70% of
the tickets were sold. He also expects that his new songs will be sold for
₱5M. his guitar, which shall be used in the concert and for the songs, is
worth ₱50K. Can he insure the guitar for ₱3.05M?
Title 4. Concealment (Secs. 26-35)
Title 5. Representation (Secs. 36-48)
Title 7. Warranties (Secs. 67-76)
1. What is concealment?
a. Give an example.
b. What is its effect? Would it render the insurance contract void? Voidable?
2. If concealment is unintentional, what is its effect on insurance?
a. What if he does not know the thing? Is there concealment?
b. What if the person ought to know the thing? Is there concealment if the
same was not disclosed?
3. What must be disclosed by the parties in the insurance?
a. When is a fact material?
b. If the fact is not material, should it be disclosed?
4. You procured insurance policy and you did not know you had cancer. Is the
insurer liable?
a. Won’t Sec. 28 apply?
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b. How about Sec. 30?
c. How about Sec. 35?
5. Is intention material?
a. What is unintentional concealment? Illustrate.
b. Are incomplete answers unintentional concealment?
c. What is the purpose for classifying concealment into intentional and
unintentional?
d. Can you raise good faith as a defense?
6. What may not be disclosed? Illustrate each.
a. What are matters of opinion?
7. What if you forgot to disclose that you have allergies?
a. What if it was not asked? Should you still disclose?
b. What if the question is “are you healthy”?
c. What if you were a doctor?
8. What if you did not disclose that you were involved in several accidents?
9. Supposing you have HIV, but you did not know. Should you disclose the
possibility that you have HIV because you had unprotected sex?
10. Supposing an individual has violated traffic rules thrice and already met a car
accident but did not disclose it upon applying for a life insurance. Is there
concealment?
11. Supposing you had cancer and you did not know of such fact when you applied
for a life insurance. A month later, you died. Is there concealment?
12. Your boyfriend insured his car but did not disclose that he has cancer. He
figured in a car accident and died. Is the insurer liable?
13. Your boyfriend was convicted of drunk driving. He insured his car and did not
disclose this information. He got in a car accident. Is the insurer liable?
a. What if the car was given by his company?
b. What if it was your boyfriend’s driver that was convicted of drunk driving
before and you did not disclose the same. The driver was at fault in the
accident. Can your boyfriend recover?
14. You are applying for a life insurance policy and you did not disclose that you
were bitten by a dog. You died of cancer. Can your heirs recover?
a. What if you were young when you were bitten and you cannot remember
such?
b. What if you disclosed that you were bitten by a dog but you did not disclose
that you did not get shots?
15. Is failure to disclose the value of the property in a property insurance
concealment?
16. You bought a car and it is not fully paid. You apply for insurance. Do you have to
disclose such fact?
17. Does the right to rescind apply also to the insured? Illustrate.
18. What is representation? Is there an exception?
a. What is the effect of representation? Would it alter the insurance contract?
b. What happens when the representation turns out to be false? Automatic
rescission?
c. When does representation need to be true? What about during the
effectivity of the insurance contract?
d. Is representation part of the insurance contract?
e. Is representation only possible prior to the insurance contract?
2
 f. Must it also be material? a. Why does it affect the contract if it is not a part thereof?
g. What if stipulated? Can the insurer rescind? b. If the representation appears in the contract, does it cease to be a
h. What are the kinds of representation? Define and illustrate each. representation?
i. What is misrepresentation? 34. With respect to the effect, misrepresentation vs. warranty.
19. Representation vs. misrepresentation. Illustrate. 35. “Representations need not be absolutely true, only substantially true.” Do you
20. Misrepresentation vs. concealment. agree?
21. If I say that I am in good health when, in truth, I am terminally ill, is it a. Give an example of a substantially true representation.
concealment or misrepresentation? b. [Reciter answered, “Insured states he is in good health condition, but is
a. What if you have no knowledge that you are terminally ill? actually suffering from fever at the time.”] What if it is dengue but fully
22. You were asked if you were healthy but you were actually suffering from an recovered?
illness. Is there misrepresentation? c. What if it is cancer but fully recovered, i.e., cancer-free?
a. What if you know that there is something wrong but did not know the exact d. What if the foregoing were, instead, warranties?
sickness, and then you still answered that you are healthy. Is there 36. “Not all representations in the contract are warranties.” Do you agree?
misrepresentation? a. If you fail to inform, misrepresentation or concealment?
b. What if you said you are healthy but you have cough? b. If the misrepresentation is included in the contract, is it a breach of
23. Can concealment be a misrepresentation and vice versa? warranty?
24. Representation vs. concealment. 37. What are the kinds of warranty?
25. “I will not paint my house black”: representation or warranty? 38. You are asked if you are healthy, you said yes, but you are actually suffering
a. If the house is already black, is it concealment? Is the insurer not liable? from a terminal illness but you did not know. You died from such illness. Your
b. [Reciter answered “Warranty.”] Why? Is it promissory? Is it expressed? heirs then brought the case before the court. Can the insurer rescind?
c. Is a promise to do a future act a warranty? a. What is the incontestability clause?
26. Are all warranties stated in the contract? b. What does “last reinstatement” mean?
a. What is the effect of a breach of warranty? c. Does renewal bar the period?
b. Will the insurer be liable? d. What is reinstatement?
c. Regardless of materiality? e. Is it the same as renewal?
d. Is the insurer entitled to rescission? f. If you made a misrepresentation but there were several renewals, what is
27. Give an example of misrepresentation. the effect?
a. [Reciter answered, “‘I am straight,’ but I am actually gay.”] When will this be g. When do we start the counting of the 2-year period?
material in an insurance? h. If you renew it annually, can there still be incontestability?
b. Will such entitle the insurer to rescind? i. “If we can just renew it, then it will never prescribe.” True or false?
c. [Reciter answered, “In health insurance…”] If you are tested and the result j. There was a misrepresentation regarding health on a property insurance.
is negative, will that be material? Can the insurer contest?
28. Give an example of a warranty.
29. Give an example of a representation. Title 6. The Policy (Secs. 49-66)
a. [Reciter answered, “In a life insurance, you were actually diagnosed with 1. When does the insurance become effective?
ulcer, but said you were not”] In the example given, is it not concealment? 2. What is a policy?
b. What if he is not a doctor? a. Is the policy necessary in a contract of insurance?
c. Are opinions representation? b. Is the contract of insurance consensual?
30. Warranty vs. concealment. c. If there is already a meeting of the minds, but the policy is yet to be printed,
a. If the warranty is: “I will not paint the house black,” will the breach thereof is there no coverage yet?
entitle the insurer to rescind? d. So, is it not yet perfected?
b. Even if immaterial? e. So, is the meeting of the minds only a contract to insure?
31. What are the kinds of representation and give examples of each. f. Is the policy required to be signed?
a. [Reciter answered, “Diagnosed with cancer, then answered no, but actually g. Is it binding if it is not signed?
yes.”] Is this not concealment? 3. What is a cover note?
32. Insured told that insurer that the house will never be leased. Then, it was a. What is the purpose of the cover note?
leased. Is it misrepresentation or breach of warranty? b. Why is it binding?
a. Is the insurer liable? c. What are its contents?
33. Does a representation never appear in the contract? d. Is it the same as the policy?

TRAX | 2I | 1718 3
 e. Is it a receipt? a. Does this mean that in an open policy, you can collect the present value of
f. Is it voluminous or merely a single page note? the property?
g. What are included in the cover note? b. Is there a limit if it is an open policy?
h. Exceptions? 8. Supposing only 50% of the property is lost, and the value of the entire property
i. Warranties? increased 5x at the time of the loss? Discuss the liability of the insurer.
j. Must it state that the premium has already been paid? a. For example, you insured your property. The limit is ₱2M. The value of the
k. For a cover note to be valid, must premium first be paid? property increased from ₱1M to ₱5M. 50% of the house got destroyed; thus,
l. [Reciter answered, “No.”] So even if you did not pay anything, you can the loss is ₱2.5M. Can you recover ₱2M or ₱2.5M?
already claim? b. What if it is under a valued policy?
m. Does the insured only pay the premium upon the issuance of the policy? c. What if it is under an open policy?
n. Do you have to pay a different payment for the cover note? d. What if it is under a running policy?
o. For a cover note to be valid, must it be signed? 9. Supposing that at the time you applied for the policy, the value of the property
p. If there is already a meeting of the minds, but there is no policy yet, is there is ₱3M, and thereafter, the value increased to ₱5M, but half of the property got
already a contract of insurance? lost. For how much can the insurer be liable?
q. What if there is no cover note yet? a. What if it is under a valued policy?
4. Is the cancellation of the cover note necessarily the cancellation of the insurance b. What if it is under an open policy?
contract? c. What if it is under a running policy?
a. Can a cover note be cancelled? 10. You insured a property worth ₱3M. After 7 months, it was lost, and its value at
b. What are the grounds therefor? the time of such loss was ₱5M. How much is the liability of the insurer?
c. Prior to the issuance of the policy, can you cancel? a. What if it is under a valued policy?
d. Can the insurance contract be rescinded prior to the issuance of the policy? b. What if it is under an open policy?
e. What are the grounds therefor? c. What if it is under a running policy?
5. What are the forms, contents, and kinds of policies? 11. Discuss policy cancellation.
a. Should it be in writing? a. Is the fact of having several insurance coverage a ground for cancellation?
b. What is provided in the new law? b. Why?
c. Can it be in handwritten form? Or is it required to be in imprinted form? c. Must there be a warranty that there are no other insurance coverage?
d. What if the policy has handwritten provisions? d. Give an example of Sec. 64(d).
e. If there are inconsistencies between the handwritten and the printed, which
prevails? Title 8. Premium (Secs. 77-84)
f. Basis? 1. What is premium?
g. What if marginal notation? 2. What is the effect of non-payment of premium?
h. What must be contained in the policy? 3. How is premium computed?
i. What is the effect if one of those enumerated in Sec. 51 is lacking? 4. Supposing you are talking to a life insurance agent, and out give a check. The
j. What is the effect if the policy is signed but one of those enumerated in Sec. agent then stepped out to hand the check to the cashier. Then, the agent got the
51 is missing? policy and gave it to you for signing. However, you decided not to push through.
k. What are the kinds of policies? Can you still withdraw?
6. What is a rider? 5. Is it not payment as far as you are concerned? Is it not the fact that there is
a. What is an endorsement? already a binding contract?
b. What is a clause? 6. What if instead of a check, you gave cash?
c. Are they part of the contract? 7. What is sufficient cause in Sec. 80(b)? Give an example.
d. If attached or cross-referenced, in case of inconsistency, how will you 8. Does it matter if the payment was done in cash or in check?
reconcile? 9. Was there already exposure to the risk?
e. Should a rider be signed? 10. Can you ask for the return of the payment if you rescind?
f. Should an endorsement be signed? 11. Supposing you insured a water bottle which is worth ₱1M with A for ₱500K
g. Should a clause be signed? (₱5K premium), with B for ₱500K (₱6K premium), and with C for ₱300K (₱4K
7. Supposing you bought 5 Rolex watches which you then insured for an indefinite premium). Can there be a return of premium? If yes, for how much?
value. The price of the watches then increased 10x. Discuss the liability of the 12. What if the policy with A has a provision that the insured cannot procure
insurer. another insurance policy from another insurance company, will there still be a
return of premium?

TRAX | 2I | 1718 4
13. What if there is already a loss?
14. Can you recover if the rescission was your fault? Title 12. Reinsurance (Secs. 97-100)
15. Is there always a refund in rescission? Even if there is fraud or default? 1. Distinguish among overinsurance, double insurance, reinsurance, and
retrocession.
Title 9. Loss (Secs. 85-89) 2. Supposing you have a property worth ₱1M. You insured the same with 2
1. You procured a life insurance on your life and a property insurance for your insurers, each for ₱1M. How much can each insurer reinsure?
house and the properties therein. Then, due to your negligence (you had a 3. Are you reinsuring the property or the liability?
bonfire inside your house), the house was gutted by fire. You then tried to save 4. Can there be another reinsurer? Can there be double reinsurance?
your things. You managed to save some on your first entry to the burning house. 5. How much can the retrocessionaire reinsure?
However, on the second, the door fell on you and injured your leg. When you 6. Can there be double retrocession?
came out of the house, the firetruck ran over you leading to your death. Is the 7. Can the insured collect directly from the reinsurer?
insurer liable? Property insurance? Life insurance? 8. Can the insured collect directly from the retrocessionaire?
a. If the insurer is not liable, can there be a return of premium? Property
insurance? Life insurance? Chapter II. Classes of Insurance
Title 1. Marine Insurance
Title 10. Notice of Loss (Secs. 90-94) Sub-Title 1-A. Definition (Sec. 101)
1. You insured your house against fire. It got burned, and as a result, a family 1. What is marine insurance?
member dies. You notified 40 days after the death. Can the insurer deny? 2. What is a vessel?
a. Suppose you are required under the policy to report within 10 days and you 3. What is hull insurance?
failed to do so, are you not justified? 4. What are the kinds of marine insurance?
b. If there is a stipulated period and the delay is justified, can the insurer still 5. What are the kinds of marine policies?
be held liable? 6. What is inland marine?
c. Will your answer be the same if it is life insurance? 7. What can you insure?
2. What if the insured dies and leaves no heirs? Who will give notice under life 8. What other risk?
insurance? 9. What are the clauses that cover the risk insured against?
a. What if he has heirs but such heirs were not indicated as beneficiaries 10. Perils of the ship vs. perils of the sea.
under the life insurance policy?
3. Supposing A loaned B money. In order to secure the loan, B mortgaged a house Sub-Title 1-B. Insurable Interest (Secs. 102-108)
to A. A insured said house and his life, and on the latter, he designated B as 1. Discuss everything about insurable interest.
beneficiary. The house burned and A died. B did not know that he was the 2. What is insurable interest in marine insurance?
beneficiary, and found out about the same 10 years after A’s death. Can B still 3. What if there is a charter party?
claim? 4. What are the kinds of charter?
a. Supposing all pieces of evidence were lost? 5. Who has insurable interest in a bareboat charter? To what extent?
4. What is a notice of loss? What is its purpose? 6. A vessel is chartered; charterer leased for cargo, to be sold at ₱500K. Then,
5. Is this applicable for all kinds of insurance? goods are subject of respondentia. Vessel is for ₱100M. Who and up to what
6. Is notice necessary in life insurance? extent are the parties’ insurable interest?
7. Instances of waiver 7. A vessel was chartered for ₱1M. A, B, and C each has cargoes on board, valued at
8. Form of notice ₱500K, to be sold at the port for ₱1M. the shipowner expects a profit amounting
to ₱1M. Half of the values were the subject of a respondentia loan, while the
Title 11. Double Insurance (Secs. 95-96) other half were subject to bottomry loan. What is the extent of the insurable
1. Illustrate over insurance and double insurance. *Example: House worth ₱10M: interests of each of the parties?
A - ₱10M (collected ₱9M) 8. What if charterer promised to pay the value of the vessel in case of loss? What is
B - ₱5M (collected ₱3M) the insurable interest?
C - ₱2M (collected ₱2M) a. What if there is no promise?
D - ₱2M (collected ₱1.5M) 9. What is loan on bottomry?
E - ₱1M (collected ₱500K) 10. What is loan on respondentia?
If the insured collected ₱16M, how should the ₱6M be returned?
a. Will there be a return of premium? Sub-Title 1-C. Concealment (Secs. 109-112)
b. How will the premium be returned? Is there a formula? 1. Discuss concealment.

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2. Is concealment a ground for rescission in marine insurance?
Sub-Title 1-D. Representation (Secs. 113-114)
1. Discuss representation.
Sub-Title 1-E. Implied Warranties (Secs. 115-122)
1. What are implied warranties?
2. What is the effect if there is a breach of an implied warranty?
3. When is a ship seaworthy?
Sub-Title 1-F. The Voyage and Deviation (Secs. 123-128)
1. What is deviation?
2. When is there deviation?
3. When do you know if it is within its course? What is the basis?
4. What if there is no agreed route?
5. What are the kinds of deviation?
6. Give an example of an improper deviation.
7. What is the effect of improper deviation?
8. Supposing the vessel changed route because according to PAGASA, there is a
typhoon. There is no typhoon. There was a loss. Can the insured recover?
9. If there is an improper deviation, does it automatically avoid the policy?
10. What are proper deviations?
Sub-Title 1-G. Loss (Secs. 129-139)
1. What is an average?
2. What are the kinds of averages? Give an example for each kind.
3. What is jettison?
4. What is the procedure for jettison?
5. What are the requisites for general average?
6. Can the wages of the seamen and crew be insured?
Sub-Title 1-H. Abandonment (Secs. 140-157)
1. What is abandonment?
2. What are the requisites for abandonment?
3. What is the procedure for abandonment?
Sub-Title 1-I. Measure of Indemnity (Secs. 158-168)
1. Vessel owned by A was chartered by B for the value of 500K. B leased to C for
100K, leased to D for 50K, and leased to E for 50K. C's cargo (3M with expected
profit of 4M); D's cargo (4M with expected profit of 5M); E's cargo (6M with
expected profit of 7M). The vessel was attacked by pirates. Damages/Expenses:
100K(each) life insurance of 2 crews who died in defending; 5M payment to
repair; and 100K for the damage of anchor during the attack
a. What are included in GAL?
b. If the anchor is insured, how much will the insurer pay?
c. What is the interest of B?
d. Do A and B have the same interest?
e. What if C's cargo was jettisoned?
f. Will it be part of GAL? Both cargo and profit?
TRAX | 2I | 1718
g. How would you answer the question without computation?
h. How much is the loss?
2. Vessel worth 100M, owned by X, insured for 75M. Cargo A worth 100K,
expected to be sold for 150K, both amounts insured for 50% of their respective
values. Cargo B worth 200K, expected to be sold for 250K, both amounts
insured for 75% of their respective values. Cargo C worth 300K, expected to be
sold for 400K, both amounts insured for 90% of their respective values. Pirates
attacked. Crew 1 and Crew 2 successfully warded them off. Both crew members
were insured for a total of 500K. in the course of the attack: Crew 1 and Crew 2
got injured; a portion of the vessel (¼ of the ship) was damaged; the anchor,
worth 500K was damaged; and Cargo C was jettisoned.
a. Discuss the liability of the insurer.
b. How would you answer the question without computation?
c. How much is the loss?
Title 2. Fire Insurance (Secs. 169-175)
1. What is fire insurance?
2. What if your property got struck by lightning, can you claim?
3. Must all risks result to fire, such that if there is no fire, then there is no claim?
4. Lightning struck the antenna, damaging the TV, but there was no fire. Is the
insurer liable?
5. An earthquake occurs, resulting to the collapse of a building. The building’s
rubbles burned. The building is worth 1M, and the rubble is worth 50K. What is
the liability of the insurer?
6. Are the allied risks automatically covered?
a. Give examples of allied risks.
b. Must there be fire?
c. Is fire caused by typhoon, covered?
d. If typhoon only, covered?
7. What is friendly fire?
8. What is hostile fire?
9. Friendly fire vs. hostile fire.
10. What if kitchen got burned?
11. You insured an expensive cigar. If you light it, is it friendly fire?
a. While puffing the cigar, the curtains burned.
12. What is the effect of double insurance on fire insurance?
13. What is the effect of underinsurance on fire insurance?
a. What if co-insurance is stipulated?
Title 3. Casualty Insurance (Sec. 176)
1. What is casualty insurance?
2. What is an accident?
a. Is it the same as a fortuitous event?
3. Someone stabbed you at the back, covered?
4. Bitten by an insect and died, covered?
5. Not a professional, you joined an MMA class and got your leg broken, covered?
6. You joined a boxing match and got injured. Is the insurer liable?
7. You have a car. You hit a tree thereby damaging the car. Is the insurer liable?
6
Title 4. Suretyship (Secs. 177-180)
1. What is suretyship?
2. Suretyship vs. guaranty.
3. Suretyship vs. insurance.
4. What is Bancassurance?
Title 5. Life Insurance (Secs. 181-186)
1. What is life insurance?
2. What makes it different from other kinds of insurance?
3. Does it cover accident insurance?
4. How do we determine if the insurance is life insurance or casualty insurance?
a. You insured yourself so that you can recover if you lose your finger. Life or
casualty?
b. You insured yourself against physical injuries. Life or casualty?
c. You commit suicide but was unsuccessful. Life or casualty?
d. Life insurance vs. casualty insurance.
e. Is there materiality in distinguishing between the two?
5. Is health insurance life insurance?
6. What are the kinds of life insurance?
7. Temporary life insurance vs. permanent life insurance.
8. What if beneficiary assisted in the commission of the suicide of the insured? Is
the former entitled to receive the proceeds?
9. Supposing you insured your life for 1M, designating your son as your
beneficiary. You borrowed money from someone and endorsed the policy to
him without informing the insurer. After 3 months, you commit suicide. Who is
entitled to the proceeds?
a. Should the insanity exist prior to the policy or is it immaterial?
b. What is the rule on insanity and suicide?
c. Regardless of the period?
d. Will it be material if you are already diagnosed as insane prior to procuring
the policy?
10. You insured the life of your son, designating yourself as beneficiary. You then
used the policy to secure a loan. Your son got sick, and was put on life support.
You decided to withdraw the life support. Is the insurer liable?
the passengers in both cars either dying or suffering injuries. Discuss the
liability.
a. Is it material if either or both of the car(s) is a(are) common carrier(s)?
b. Will it matter that it is a third person?
c. Can non-passengers collect?
d. Even if it is the fault of the other vehicle?
6. Supposing there was a road trip (4 passengers and 1 driver). An accident occurs
leading to all of them getting injured.
a. Are all injuries covered?
b. How about the driver?
7. A insured the life of her son, B, designating herself as beneficiary. A acquired a
loan from C. In consideration of such loan, A assigned the life insurance policy in
favor of C. A and B went for a drive in A’s car, which has a compulsory motor
vehicle liability insurance. A was driving while B was in the passenger seat.
Then, A intentionally crashed the car with a bus filled with passengers. Also
caught in the accident were a person riding an electric bike and a person riding
a carabao. All except the bus passengers died.
a. Assuming all insurable interests are insured, discuss the liability of the
insurers.
b. To whom shall each go against?
Chapter X. The Insurance Commissioner (Secs. 437-441)
1. What are the powers of the insurance commissioner?
2. Is the jurisdiction exclusive or concurrent?
3. Can the commissioner give penalties?
4. What is the ceiling?

Title 6. Microinsurance (Secs. 187-188)

1. What is microinsurance?

Chapter III. The Business of Insurance

Title 10. Variable Contracts (Secs. 238-246)
1. What is variable insurance?

Chapter VI. Compulsory Motor Vehicle Liability Insurance (Secs. 386-402)

1. What is a compulsory motor vehicle liability insurance?
2. What is a motor vehicle?
3. Are all vehicles required?
4. Regardless of whether it is public or private?
5. Supposing a car had a collision with another car, resulting: to one of them
turtling; to hitting a carabao with a rider; to hitting a bicycle with 2 riders; to all

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