Negotiable Instrument Guide Question No. 2.docx

GUIDE QUESTIONS NO. 2 E. INSURABLE INTEREST p. 92, Sundiang and Aquino Insurable Interest Defined (Sec. 13, ICP) Q: Define Insurable Interest (BAR) 1. Insurable Interest in life (Sec. 18, ICP) Q: What is Insurable Interest in Life? (BAR) Q: When may there be an insurable interest in the Life of another? Discuss briefly.(BAR) Q: What is the purpose of the law in requiring that the insured must have an insurable interest in the life of the person insured? (BAR) Q: In Life Insurance, when must insurable interest exist? (BAR) PROBLEMS: Q: On July 14, 1985, A, a homosexual, took an insurance policy on the life of his boyfriend, Y. In the insurance application, X, misrepresented that Y was in perfect health although he knew all the time that Y was afflicted with AIDS. On October 18,1987, Y died in a motor accident, shortly thereafter, X filed his insurance claim. Should the insurer pay? Reasons. (BAR) 2. Insurable Interest in Property. Q: What is considered as an insurable interest in property? (BAR) Q: What does insurable interest in property consist of? Explain your answer. (BAR) Q: In Property Insurance, when must insurable interest exist? (BAR) A purchaser of goods under a perfected contract of sale already acquires interest on the property pending delivery. p.2 PROBLEM: Q: A piece of machinery was shipped to Mr. Pablo on the basis of C &F, Manila. Mr. Pablo insured said machinery with the Talaga Merchants Insurance Corp. (TAMIC) for loss or damage during the voyage. The vessel sank en route to Manila. Mr. Pablo then filed a claim with TAMIC which was denied for the reason that prior to delivery, Mr. Pablo had no insurable interest. Decide the case. (BAR) Insurable Interest in Life Insurance vs. Insurable Interest in Property Insurance Q: Distinguish insurable interest in life from insurable interest in property, (Bar) a. As to intent; b. As to time when insurable interest must exist; c. As to expectation of benefit to be derived; and d. As to the beneficiary’s Interest. Insurable Interest of mortgagor and mortgage over mortgaged property PROBLEM: 1. To secure the payment of a loan of P 30M Insurable Interest of beneficiary and assignee of the policy PROBLEM: 1. Spouses NC and SC leased the property of CKS…. 3. Double Insurance and Reinsurance p123, Sundiang & Aquino Double Insurance Defined Q: When does insurance exist? (BAR) (Sec. 93,ICP) Q; What is the nature of the liability of the several insurers in double insurance?(BAR) Effect of Double Insurance Q: What are the effect of device insurance and over-insurance? (Sec. 94. ICP) Reinsurance Defined Q: What is a contract of reinsurance? (BAR) (Sec. 95, ICP) Double Insurance vs. Reinsurance Q: What is the difference between double insurance and reinsurance? (BAR)