DY, ANGELICA JOYCE B.

, LAW 3B

FINAL EXAM IN INSURANCE

I.

Bruno’s action could not be given due course.

The New Civil Code provides that prescription of action is interrupted when they are
filed in court.

In the provided facts, the motion for reconsideration filed by Bruno on March 30,
2015 did not suspend the prescriptive period of one year which was stipulated in the policy.
Therefore, his right to file an action in court, which he did on April 5, 2016, has already
prescribed since it has been more than a year after the rejection of his claim.

II.

a.)

No, Calum cannot claim against the policy.

Under the Insurance Code, in a property insurance a beneficiary must have an

insurable interest over the property insured.

Calum does not have an insurable interest over the house.

b.)

Yes, Calum can now successfully claim over the policy.

In a life insurance, the beneficiary must have an insurable interest over the life of
the insured.

III.

No, Kygo cannot recover from the policy.

The Insurance Code provides that a warranty of seaworthiness is complied with if

the ship is seaworthy at the time of the commencement of the risk.

In the given case, the ship was not seaworthy due to negligence of Kygo to secure
one porthole which caused the damage on the cement. Kygo shall be guilty for breach of
the warranty of seaworthiness.
 IV.

No, Miguel cannot recover on his fire insurance policy.

Miguel is guilty of violation of the warranty condition which requires him to give
notice of any insurance effected covering the stocks in trade.

V.

No, Trump’s contention is not correct.

The New Civil Code provides that if plaintiff’s property has been insured and he has
received indemnity from the insurance company for the injury or loss arising out of the
wrong or breach of contract complained of, the insurance company shall be subrogated to
the rights of the insured against the wrongdoer.

The loan of Trump was not extinguished by the insurance payment received by
Biden and the insurance payment does not insure to his benefit since what is insured is the
right of Biden as the creditor. Hence, in accordance with the above-mentioned provision,
Black Insurance Co. has the right to go after Trump.

VI.

The insurer should not pay.

In a life insurance, friendship alone is not an insurable interest. It is required that a

person who claims must have an insurable interest over the life of the insured.

In the given case, Diego does not have an insurable interest over the life of Dora.

VII.

No, Could Condor Insurance Co. be made liable under the policy.

Mr. Tugade was not authorized to drive the passenger jeepney because of the
confiscation of his license by LTO which happened before the accident. In order for the
insurance to apply, he must be authorized to drive at the time of the accident.

VIII.

a.)

No, the contention of Ariba is not correct.

Where an insurance policy insures directly against liability, the insurer’s liability
accrues
immediately upon the occurrence of the injury or event upon which the liability depends.

The occurrence of injury to Francis Al immediately made the insurer liable under the
policy.
 b.)

No, Ariba cannot be held liable with Joey Sal.

In solidary obligation, the creditor may enforce the entire obligation against one of
the solidary debtors as provided in the Civil Code.

In the case at bar, if Ariba, the insurer would be held solidarily liable then he would
pay more than the amount in the policy which would be contrary to principles in Insurance
contract.

IX.

Yes, Good Grain’s claim for total loss is justified.

Under the insurance code, there would we an actual total loss due to damage to a
thing which would render the same valueless for the purpose which he held it.

In the given case, the rice purchased by Good Grain Corp is intended for human
consumption. The rice has become useless when it was soaked in sea water since it cannot
be consumed anymore by a human which was the purpose of its purchase and importation.

X.

No, Smart Dad cannot collect.

It is provided that trust funds shall not be held liable for attachment under any legal
process except if it would be for the payment of debt of plan holder or that arising from
criminal liability.

Smart Dad Corp. cannot be given preferential payment even though it was one of
the creditors who have helped BKK in its financial losses.