CALDERON MARIA GINALYN

1. No,Petra’s suit will not prosper. There was concealment on the part of the insured.
Good faith is not a defense when there is concealment and Section 27 of the Insurance
Code clearly provides that the concealment whether intentional or unintentional
entitles the injured party to rescind the contract. In the instant problem, Juan failed to
disclose that he was hospitalized which is material and relevant information in risk
assessment for a non-medical life insurance. Hence, Good life has the right to deny the
claim of Petra.

2.
A. As to extent
Insurable interest in life is unlimited while in property it is just the Actual Value of the
property

b. As to time when insurable interest must exist

In life insurance, the insurable interest exist at the time the policy takes effect while in
property at the time the policy takes effect and the loss occurs.

c. As to expectation of benefit to be derived

In life insurance the benefit can be derived even if there is no legal basis, in property
there is a need for legal basis

d. As to beneficiary’s interest
In life insurance, if the insured himself secured the policy, the beneficiary need not have
insurable interest over the life of the insured and if the life insurance was obtained by the
beneficiary, the latter must have insurable interest over the life of the insured. While, In
property, the beneficiary is absolutely required to have insurable interest over the property.

3. A. Yes, right of subrogation takes place after payment of Cala to Luz. There is no need
for a formal assignment or an express stipulation to such.
B. No, Cala should go after Raul. The insurer should recover from the third person what the
insured could have recovered. In the instant case, Luz just properly claimed from Raul
the excess amount for the unpaid damage of her car which is her right because she can
no longer recover from the insured the excess damage which is not covered by the
insurance. The deficiency collected by Luz is not covered by the right of subrogation.
Cala should pursue Raul for the 5,000 paid as an insurer on the ground of the right of
subrogation.