I

Roel a well-known thief in their community and considered to be public enemy number 1 in
the country. Rowena the wife of Roel went to ABS insurance to apply for a life insurance against the
life of Roel, but ABS insurance turn down Rowenas application for being a public enemy number 1.
Aggrieved Rowena, went to court and asked for relief.
a. Can the court compel ABS to insure Roel considering he is public enemy number 1? ()
b. Suppose Roel is a citizen of a country where the Philippines has no diplomatic relation,
can ABS insured Roel?
II
A owns a building and insured it with B company. While the existence of the contract, the
building was mortgaged and the mortgage was foreclosed, but A failed to redeem. After the
expiration of the period of redemption, the building was burned.
a. In the above given case, who can insure the building?
b. Given that A can insure the building, can he recover from the insurance company?
c. Explain the extent of insurable interest of A on the building.
d. Differentiate insurable interest of life insurance from property insurance.
III
A while playing basketball in high school broke his leg and resulted to dislocation of his leg
and limping problem. When he applied for life insurance he conceal such fact and failed to disclose
it. When travelling to Indonesia, he died of a plane crash.
a. Can the insurance company negate payment on the ground of concealment, considering
that he died of plane crash
b. State the exception of the recession in case of non-performance of a promissory
warranty.
IV
a.

A, owner of a condominium unit, insured the same against fire with B insurance
company, and made the loss payable to his sister. If the condominium may be lost by
fire, who may recover?
b. In fire insurance, and does not contain valuation on the policy, state the rule in measure
of indemnity.
V
A insured his car which contains authorized driver clause and theft clause. B, a hotel valet
park boy, got interest on As car while it was parked on the hotel. Drove the car and stroll all over
the city but met an accident while on his possession which he has no intent to gain.
a. Aggrieved A filled a claim on the insurance company but the insurer negated the claim
considering that B has no valid drivers license and that B being a hotel valet and do not
have the intent to gain cannot be considered as theft. Decide
b. Suppose that the car destroyed the property of C, what is the remedy of C?
VI
C a cargo owner secured the services of MV Princess of the South to transport his good, not
known to him the vessel is not seaworthy because of the concealment of the owner. C insured his
cargo with B insurance company. When on sail the vessel was lost, aggrieved C filed a claim
against B on which it denied.
a. Differentiate perils of the sea from perils of the ship.
b. Can C claim from B?
VII
a. Define contract of insurance.
b. What are the elements of contract of insurance?