KARL JASON C.

JOSOL INSURANCE LAW

INSURANCE
FINAL
EXAMS

1. What are the prevailing rules to be observed in concealment under

marine insurance?
Under marine insurance, these are the prevailing rules to be
observed regarding concealment:
a) Each party is duty-bound to reveal all material information that
each one has in relation to every matter by which he represents
b) That information of the belief or expectation of a third party, in
reference to a material fact, is indispensable
c) There is a presumption of knowledge of a prior loss on the part
of a person insured by a contract of marine insurance at the
time of insuring that might possibly have reached said insured
as per usual mode of communication
d) The following points do not impair the validity of marine
insurance in regards to concealment but merely discharges the
insurer from a loss resulting from risks concealed thereof: (a)
The national character of the insured; (b) The liability of the
thing insured to capture and detention; (c) The liability to seizure
from breach of foreign laws of trade; (d) The want of necessary
documents; and (e) The use of false and simulated papers.
2. Who has insurable interest in marine insurance?

As per the Insurance Code these people have insurable interest in a marine
insurance:

a) Shipowner - It is mainly the shipowner who has the insurable interest in a

marine insurance because, being the owner of the ship he expects profits by
reason of the freightage as a result of the transportation of goods made by his
ship on a particular voyage

b) Charterer of the ship – this pertains to any person who may have reserved or
rented the ship for the purpose of transferring goods or even persons and
his/her interest therewith is up to the extent of the charter

c) Any person who expects profits from the things/goods that are shipped
therewith on the ship – i.e. merchants, the shipper, or any party/person who
has interest thereof

3. What is a contract of suretyship?

A contract of suretyship is a form of a contract wherein the surety obliges himself

by law to guarantee the performance of the obligor with regards to the obligation
in case of insolvency or bankruptcy to the other party, i.e. the obligee and under
the insurance code, it can be deemed also as a form of contract of insurance if
the surety engages itself thus in such a business as a vocation and not merely
incidental thereto to said contract entered upon by the parties.

4. What is the nature of the liability of a surety? How is it determined?

The nature of the liability of a surety is that firstly, it is solidary meaning that the
surety in such a contract is solidarily liable with the debtor so that in cases of
insolvency by the debtor, the creditor can readily claim upon the surety of the
said obligation. Secondly it is limited to the amount of the bond which means that
the creditor can only claim or enforce the obligation to the surety up to extent
only of the bond or the obligation thereof. It is determined strictly by the terms of
the contract of suretyship in relation to the principal contract between the obligor
and the obligee.

5. What is casualty insurance?

Casualty insurance pertains to insurance which covers loss and liability relating to
accidents or mishap other than those exclusively belonging categorically to fire or
marine insurance and it may entail personal insurance from accidents and/or
health insurance as offered by non-life insurance companies. It may include
employer’s liability insurance, motor vehicle liability insurance, theft or burglary
insurance among others.

6. State the rules to be observed in the alteration in the use or

condition of the thing insured covered by a fire
insurance?

The changes or any alteration that can be made by the insured to

the thing that is insured or covered by the fire insurance and
without the consent of the insurer is limited to the policy and he
may make changes thereof within his means but any changes that
increases the risk of the thing insured may be a ground of
rescission of said contract of insurance.

7. Do the acts of the insured affect the fire insurance?

Yes it may affect fire insurance if it can be proven by evidence that by fraud
the insured did some acts intentionally so as to cause some peril thru his own
machinations or have the insured property willfully be exposed to the peril
insured against or worst, even cause literal damage or even fire to the property to
avail of the insurance

8. What is the measure of indemnity in a fire insurance that has no valuation?

As per the Insurance Code, the measure of indemnity in a fire insurance that has
no valuation would be the expense that would have incurred to the insured at the
start of any peril or risk that is covered or stipulated under the fire insurance to
replace the object lost or extinguished like for example at the start of a literal fire.

9. What is life insurance?

 Life insurance pertains to an insurance contract covering the human lives of
either the beneficiary named in the insurance or the insured himself who availed
of the insurance and proceeds therewith of the insurance is payable immediately
upon the death.

10. What are the rules to be observed for contracts of life insurance
under the Insurance Code?
Under the Insurance Code, these are the rules to be observed for
contracts of life insurance:
a) A life insurance policy made be made payable either: on the
death of the person insured, on surviving a defined period, or
the continuation of his life
b) Transferrable by will or succession to any person whether there
is insurable interest or not
c) Unless expressly required, there is no need to notify the insurer
for any transfer made
d) The measure of indemnity under life insurance is the sum fixed
in the policy

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