SB TIPS:

Sources important aralin by order:

1. Recit notes ng kabilang class

2. SB notes (if may cases sa sb notes, yun yung ifocus mo, pero minsan nagiiba iba si sir)

3. Book. Okay naman yung de leon, kaso lang minsan daw may tinanong si sir na galing sa book na
phase-out na hahaha 

4.Codal (memorize, or tingin ka nalang sa screen AHAHAHA)

NOTE: 1 recit lang per half sem, so galingan mo. Malaki ang chances mo na mag-line of 9 sa recit
basta lang masagot mo lahat ng tanong. Recit notes is the key.

RECIT QS PART 1:

1. What is a contract of insurance?

2. Is loss on occasion of ordinary wear and tear a proper subject of contract of insurance?
3. What are the requisites of contract of Insurance?
4. X Law Firm promises to defend Dr. X for any suit against malpractice which may arise in the future
for 10k monthly. Is this insurance?
5. X Corp promises to answer for Dr. X in case the latter be liable for any malpractice. Is this
insurance?
6. What if Dr. X pays 10k monthly for a year for X Corps promise to answer any suit against him. An
actual case was filed, Dr. X was liable for 1Million. Is this Insurance?
7. X and Y are spouses married in 1995. They have 10 common children . All of them contributed part
of their salary to be used incase one of them is diagnosed with a grave illness. Is this insurance?
8.Phil. Heathcare case
9. Principal Purpose Test
10. White gold case
11. Sec 7
12. What is a public enemy?
13. Is ISIS (terrorists) a public enemy? 
14. Can a pubic enemy be insured? 
15. Differentiate Insured v Insurer
16. X corp is a filipino company, Y is a public enemy. Can Y be insured by X Corp?
17. X corp is Public Enemy, Y is filipino. Can X insure Y?
18. Purpose of War

RECIT QS PART 2:

1. Article 739
2. X and Y married in 1999, MR. X has a paramour P, let’s say Mr. X has a loan, can he designate
that paramour as beneficiary?
3. Can the husband Mr X, insure his own life, has illegitimate child with paramour, can the husband
insure his own life and designate the child as beneficiary?
4. Is this an issue of insurable interest on the part of the illegitimate child?
5. if a person has insurable interest, then the beneficiary must have insurable interest?
6. can X insure the life of illegitimate child?
7. can X insure the paramour? 
8. Article 2012
9. Given the provisions of art 2012, because in the case, the husband did not ensure life of
illegitimate and designated the paramour as beneficiary
10. Ms Y (legitimate wife) insured her own life, can she designate the paramour as beneficiary? 
11. what if conjugal property, you will donate half of it to paramour, is that allowed?
12. What is the presumption as to the source of the premium paid?
13. Why not 50-50 why is it partially invalid? so all or nothing? kahit na one half ng ung attributable
premium to the husband, in which case 1/2 prohibition. The 1/2 of Y is not covered naman, so why
not 1/2 mapunta kay Paramour since 1/2 lang naman covered ng prohibition?
14. Can Y the wife insure the life of husband, can she designate herself as beneficiary?
15. Y insured the life of husband, can she desginate the paramour as beneficiary? Is Y covered by
the prohibition under Article 2012? so it would depend in the source of funds (whether acp or
separate)?

RECIT QS PART 3:

Spouses Cha vs. CA

Correct issue: Insurable interest
Is it required that insurable interest exist during interim?
With respect of the lessor with spouses Cha, how did SC able to conclude that the lessor did not have
insurable interest over the goods?
When should insurable interest exist in case of life insurance?
When should the insurable interest in life insurance? in property?
Why are there two rules for the difference?

x - debtor, 8 years old

y - creditor, 8 years old

Does y have insurable interest over x?

If both are minor, what’s the status of the contract? Void?
Unenforceable so it’s still susceptible to ratification so still a legal source of obligation?

X employer
Y general manager
Z janitor

X has insurable interest over the life of y?

Does X has insurable interest over the life of Z?

The beneficiary will be allowed to speculate over the life of the insured>
Can Y insure the life of X and designate Z as beneficiary

X borrowed 1M from Y as collateral mortgaged 200M. X mortgagor, Y is the mortgagee.

X Insured with A company and designated himself as beneficiary. 

X assigned that policy to Y. Value is 1M against fire. A peril insured against Y. A Company paid the
insurance proceeds to Y. 

Can A company recover from Mr. X the amount paid to Y?

What is the effect when there is no additional obligation imposed with respect to the insurance
policy? 

Did the mortgagor cease as party to the insurance policy? Is it proper that A has a claim over Y not
withstanding X did not cease to be a party in the contract. Wala ng subrogatory right pero pwede
parin irecover? (Atty:Hala!) 

Midterms only until POLICY

RECIT QS PART 4:

What is a policy?
Is it required that the form is approved by the IC? And the form includes the language?
Spouses Tibay vs. CA - read paragraph before dispositive
What is contract proferentem? Why do we construe it in favor of the insurer? Why are we blaming the
insurer not the Insurance Commission?
Insurance Commission a purely executive function? Administrative? 
UCPB GENERAL INSURANCE CO., INC. V. MASAGANA 
SPOUSES TIBAY V. COURT OF APPEALS
Makati Tuscany Condominium Corp. v. Court of Appeals
Section 14 Insurance Code. Example each
Define insurable interest in property
Section 13
When is there an existing insurable interest in property?
I borrowed your car, do I have insurable interest in the car?
What enumeration in Section 14? Enchoate
Enchoate vs expectancy
Is there presumption of consent when I plant crops on the land of another? - There is none.
Why are you making distinctions with
Does the lessor have insurable interest over the property subject of the lease?
X stole the car of Mr. B. Does X have insurable interest over the car? What did Atty Dizon say? 

NO. It would seem that a robber or thief has an insurable interest because he has the obligation to
return the same even if it is in the possession of a third person (under the RPC). But, one cannot
have a lawful interest in the stolen property even if he purchased it in good faith; there is no title and
he cannot be considered as the sole and exclusive owner because the possession does not
constitute an exclusive and undisputed claim. (Dizon) Hence, if the interest in a contract of insurance
is against the law, he will cease to have a legal insurable interest.
Supposing that X borrowed 1M from Y, X has a house with value of 1M. Y insured the said house for
3M. How much can Y claim. Is the owner of the house a beneficiary?
Section 53

Supposing X
Give an example of 3rd instance of expectancy.
What’s the difference between expectancy and inchoate.

He owns a car and a jeepney and insured both for 1M. He paid a premium in 2014. In 2015, X sold
the car to Mr. Y. In 2016 was destroyed.

RECIT QS PART 5:

1. What is a policy
2. Read the last paragraph in the case of Sps. Tibay vs. CA
3. What is the Doctrine of Preferente?
4. Why should the Insurance Commission cannot be blamed if there is an ambuguity in the Insurance
Policy?
5. UCPB vs. Masagana Telecomm
6. Makati Case
7. What is Section 14 in Insurance Code of the Phils.? –

"Section 14. An insurable interest in property may consist in:

"(a) An existing interest;

"(b) An inchoate interest founded on an existing interest; or

"(c) An expectancy, coupled with an existing interest in that out of which the expectancy arises.

8. What is an insurable interest?

9. Give an example for each enumerated in Sec. 14
10. Section 13 - "Section 13. Every interest in property, whether real or personal, or any relation
thereto, or liability in respect thereof, of such nature that a contemplated peril might directly damnify
the insured, is an insurable interest.
11. Can you give an example of an existing interest?
12. I borrowed your car. Do I have an insurable interest over your car?
13. Let’s say the car was destroyed, how can I return the car?
14. How do you differentiate an inchoate interest and expectancy interest?
15. Can future crops be insured?
16. Does the lessee have an insurable interest on the property being leased?
17. Mr X stole a car of Mr B. Does Mr X has an insurable interest over the car? - one cannot have a
lawful interest in the stolen property even if he purchased it in good faith; there is no title and he
cannot be considered as the sole and exclusive owner because the possession does not constitute
an exclusive and undisputed claim. (Dizon) Hence, if the interest in a contract of insurance is against
the law, he will cease to have a legal insurable interest.
18. Section 53
19. Bonifacio Brothers Case
20. Supposing that X owes 1M from Y. The house has a value of 1M. Does Y has an insurable
interest over X? Does the mortgagee has an insurable interest over the life of the mortgagor?
21. X engaged Y to paint the house for 10k. However the house was burned. Does X has an
insurable interest over the life of Y?
22. Example of the 3rd instance in Sec. 14
23. Read Section 20
24. What are the requisites in order that Sec. 20 would apply?

RECIT QS PART 6:

1. Art. 51
2. does the law require that the beneficiary be named in the policy?
3. if the law does not require the policy to identify the beneficiary, how will the insurer know whom to
pay?
4. bonifacio vs. mora
5. sec. 13
6. sec. 14
7. does the owner of the car have an insurable ineterest over the car? becauseee??? (kris aquino)
8. what if i brorrow the car from the owner, do i have an Iinsurable interest over that car?
9. how are you able to say that I have an insurable interest over the car when i only borrowed it? not
a mere inchoate or expectancy?
10. what if i stole the car from the lawful owner? do i have an insurable interest over the car?
11. how about restitution? can i be required? how can i restitute the car if the same is lost?
12. a mere bailee has insurable interest over the property as he holds as such. is it required that the
insurable interest flows from the property itself?
13. x borrowed 1M pesos from Y. X owns a house valued at 2M. Y insured a house for 3M pesos. by
reason of peril insured against the house was lost, how much X can recover from the insurer? (char.
diko nasundan to if tama yung pagtranscribe)
14. why not the value of the credit extended to Mr. X?
15. what if Y is designated as beneficiary? how much can he recover from the insurer?
16. does it matter whether or not Y is designated as beneficiary?
17. let's say X borrowed 1M pesos from Y. secured by a mortgage over x's house valued at 1M
pesos. does Y have insurable ineterest over the life of X?
18. how can the death of mr. X prevent the performance of obligation when mr. Y is a secured
creditor?
19. do you agree with atty. dizon? (chz)
20. do you know dean sundiang? :))
21. X was engaged by Y to paint y's house for a compensation of 10k per day, does X has insurable
interest over that house?
22. is not that an expectancy coupled with an existing interest?

INSURANCE QUIZ (APRIL 24, 2021)

1. The parties can stipulate that the transfer of the property insured will transfer the insurance policy
to the transferee of the property.
2. Cancellation of the insurance policy may be done extra-judicially.
3. A stipulation stating that the insured has 2 years to commence an action from the time of the loss is
valid.
4. The parties may agree as to the maximum value of the thing as in an open policy, but cannot agree
as to the minimum value of the thing insured.
5. Any rider clause or warranty not applied for by the insured must be countersigned by the insured
otherwise he is not bound by it.
6. An acknowledgment in a policy or contract of insurance or the receipt of premium is conclusive
evidence of payment.
7. The insured is entitled to the return of the premiums paid if the insurance contract is rescinded.
8. Discovery of other insurance coverage not disclosed to the insurer is a ground for the cancellation
of the contract under the Insurance Code.
9. There can be double insurance without over insurance and over insurance without double
insurance.
10. A stipulation stating that if at the end of the grace period the premium due has not been paid, a
policy loan will automatically be made from the policy’s cash value to pay the premium is valid.
11. Partial payment of the first premium is considered as full payment in so far as to make the
insurance binding.
12. A stipulation requiring not only the payment of the initial premium but also the issuance of the
policy to the insured while in good health before the insurance contract takes effect is valid.
13. The issuance of cover note, even without actual payment of premium, may render the insurance
effective.
14. Where the contract is for indemnity against actual loss or payment, third persons cannot directly
proceed against the insured.
15. The amount insured by the policy at the time of its issuance necessarily included the additional
sum covered by the automatic increase clause because it was already determinable at the time the
transaction was entered into and formed part of the policy.
16. The policy need not state that the insured is the absolute owner of the property.
17. The mortgagee is not prohibited from being the agent of the insurance company from which the
mortgagor secures the property insurance covering the collateral.
18. The parties can stipulate that the insurance contract will only be effective upon the delivery of the
policy to the insured.
19. Non-payment of premiums subsequent to the first authorizes the insurer to rescind the contract.
20. Non-payment of the first premium authorizes the insurer to rescind the contract.
21. Payment by means of a check or note, accepted by the insurer, bearing a date prior to the loss,
assuming availability of the funds thereof, would be sufficient even if it remains unencashed at the
time of the loss.
22. The insurer is not entitled to the return of the premium if policy is annulled due to fraud.
23. The insurer is entitled to the return of a portion of the premium if it is discovered that the property
insured was destroyed due to fortuitous event prior to the effectivity of the insurance contract.
24. If the thing insured is transferred without the concomitant transfer of the policy, the policy will only
become effective if the original owner of the policy re-acquires the property insured.
25. The parties may stipulate that the proceeds of the property insurance will be paid to any entity to
whom the property is mortgaged at the time of the loss and if there is none, it will paid to the insured.