Business Law and Taxation Review
Regulatory Framework for Business Transaction
Insurance PD 612 as amended by RA 10607
1. What is an Insurance Contract?
a. Who are the parties to a contract of insurance?
2. What are the elements of an insurance contract?
a. What may be insured against?
b. What is an insurance premium?
3. What are the characteristics of an insurance contract?
a. What do you mean by Uberrimae Fides? Why is an insurance contract considered
as an Uberrimae fides contract?
4. What is insurable interest?
a. If a person procures insurance on his own life, who may be his beneficiary? Who
may not?
b. What is double insurance? Is it prohibited? (Distinguish applicability between life
and property insurance)
5. When is a contract of insurance perfected?
a. What is the cash and carry rule under the insurance code?
b. Can an insurance policy be binding despite non-payment of premium?
c. What are cover notes?
d. What are the instances when an insured is entitled to return of the premium paid?
Rescission of Insurance Contracts
6. What is concealment? What is the effect of concealment?
a. What facts should be disclosed to each party in a contract of insurance?
b. What is the test of materiality?
c. Should the fact/s concealed be the proximate cause of the loss in order to constitute
concealment?
d. What facts need not be communicated to each other in a contract of insurance?
7. What is representation in the context of insurance laws?
a. When is a representation deemed false?
b. What is the effect of false representation?
c. What is the theory of imputed knowledge?
d. What is the test of materiality?
e. Is proof of fraudulent intent on the part of the insured necessary in order to entitle
the insurer to rescind (based on false representation) the policy? (as compared with
concealment)
f. What is incontestability clause?
i. What are the requisites of the incontestability clause?
ii. What are the defenses not barred by incontestability clause?
8. What is a warranty in the context of insurance law?
a. What are the kinds of warranty?
b. What is the legal effect when before the time arrives for the performance of
warranty, the loss insured against happens?
c. When may the insurer rescind for violation of warranty?
Claims Settlement and Subrogation
9. What does loss in insurance mean?
a. When is an insurer liable for loss?
b. When is the insurer not liable despite the occurrence of a loss?
c. What should the insured do after the loss in order to recover from the insurer?
d. What happens in case of non-submission or delay in the submission of the notice
and/or proof of loss?
e. When should the insurer make the insurance payment to the insured?
f. What happens in case of delay in the payment of insurance claim?
10. What constitute unfair claim settlement?
Prescription of action
11. What is the remedy available to the insured in case his insurance claim is rejected by the
insurer?
12. What is subrogation?
a. Is the consent of the wrongdoer necessary to enable the insurer to acquire the right
of subrogation? How about the insured?
b. How much may the insurer recover from the wrongdoer as a result of subrogation?
c. In what instances is the insurer not entitled to the right of subrogation?
d. Within what period should the right of subrogation be exercised?
Class
Marine Insurance
13. What is marine insurance?
a. Who has insurable interest in marine insurance?
b. What peril may be insured against?
c. Distinguish perils of the sea and perils of the ship.
d. What is an all-risk policy?
e. What are the implied warranties in marine insurance?
f. When is a ship seaworthy?
g. What is deviation in the context of marine insurance?
i. What is the effect of improper deviation?
ii. What are the instances when the deviation is considered as proper?
h. What is abandonment?
i. When may a person insured by a contract of marine insurance abandon the thing
insured?
i. What are the requisites of a valid abandonment?
ii. What is the effect of abandonment?
Fire insurance
14. What are the perils covered by a fire insurance?
15. What are the different kinds of insurance policy? Three (3)
16. What is the effect of alteration in the use or condition of the thing insured?
17. What is the measure of indemnity in fire insurance?
Casualty insurance
18. What is casualty insurance?
Life insurance
19. What is a life insurance?
a. To whom will the proceeds of the life insurance policy be payable?
b. What are the principal types of life insurance?
c. When is life insurance payable?
d. Within what period should the claim be paid?
20. Is the insurer in a life insurance liable in case of suicide by the insured?
Microinsurance
21. What is microinsurance?
Compulsory motor vehicle liability insurance
22. What is Compulsory motor vehicle liability insurance?
23. What is the No Fault Indemnity Clause? What are the rules on claims under said clause?
24. What is the authorized driver clause?
25. What is the theft clause?
Variable contract
26. What is a variable contract?