Insurance - Midterms

These are the reconstituted questions asked in our Midterm Examinations under Atty. MRD.

1. State Section 2 of the Insurance Code.
2. What are the kinds of policies? Define each.
3. What are the exceptions to the change in interest rule?
4. What are the insurable interest of persons?
5. State the effects of the assignment of policies to mortgagor and mortgagee.
6. What is the test of Materiality in Representation?
7. XYZ Corporation is a juridical entity created and duly registered in the Philippines. Majority of its directors are Iraqis. It entered into an insurance contract with Seguro Insurance for its merchant ships in January 1, 2000. On April 1, 2000, the Philippines declared war against Iraq. On June 1, 2000, the war ceased. Thereafter, in July 1, 2000, one of its merchant ships sank of the coast of Africa. Can XYZ Corporation collect from its insurance coverage?
8. Torculo mortgaged his house to Tambunting for P1 million. The value of the house is P2 million. Tambunting later insured the house for P2 million. If the house was lost, how much should the insurer pay Tambunting? Explain.
9. Elisa has a P500,000.00 debt with her best friend Clarissa. Elisa then took a life insurance policy for P1 million, and designated Clarissa as beneficiary. When Elisa died, her executor claimed that only P500,000 should be given to Clarissa, and the remaining amount be credited to Elisa's estate. Is the contention of the executor valid?
10. Manolo was chosen by ACRE Corporation as its President on January 1, 2009. He was taken a life insurance by ACRE as its President. He also lived in a house owned by ACRE, which was subject to a fire insurance coverage because Manolo lived there. On April 1, 2009, Manolo resigned as President. He bought the house he was living in from ACRE. On June 1, 2009, the house burned down, killing Manolo. Can ACRE Corporation collect from the insurance policies of Manolo and the house?
11. A boyfriend took a P10 million life insurance policy on his life and designated his girlfriend as the beneficiary. After some time, the boyfriend wanted to change the beneficiary because he alleged that his girlfriend committed infidelity. The girlfriend opposed on the ground that she has already acquired vested interest in the policy. Is the contention of the girlfriend correct?
12. Pedro took a life insurance policy on his life in January 1, 2005, and named his son Juan as beneficiary. On December 30, 2006, Pedro wanted to change the beneficiary because the son has allegedly been hooked on illegal drugs. A year later, on December 30, 2007, Pedro died of cancer. In the application for insurance filled by Pedro with the agent of the insurance company, he concealed the fact that he was diagnosed with cancer. Meanwhile, the heirs of Pedro filed a case for collection of the insurance coverage with the courts. The insurance company denied liability, citing the defense of concealment. Rule.
13. Minda, a laundry woman, took a life insurance policy on her life. On her application in January 1, 2009, she answered "NO" in the question, "Are you suffering from any ailments or diseases in the stomach, liver, kidneys and intestine?" On August 1, 2009, she died of kidney cancer. The insurance company denied liability claiming concealment. Decide.
14. Gregorio owned a building worth P5 million. He had a P3 million loan from Andres. How much can Andres insure the building? Can Gregorio assign the policy to Andres, and likewise, what are the effects?