CAGAYAN STATE UNIVERSITY

COLLEGE OF LAW
Andrews Campus, Tuguegarao City, Cagayan

COMMERCIAL LAW REVIEW

(SET 1 – INSURANCE)

Since regular classroom setting is not yet sanctioned under the current conditions, it is deemed
necessary that scholastic requirements be demanded from the students as basis for their
assessment in this subject.

Below is the first set of questions/requirement out of five, 1 necessary for evaluating you in this
subject. Your answers should be submitted on Wednesday, 29 April 2020. Thereafter another
questionnaire will be sent to you electronically.

Late papers will not be admitted. Stay safe.

Instructions: Answer the following questions directly and legibly, and your score will form part
of your grade in this subject. The questions in the final exam will be based on the set of
questionnaires.

I. INSURANCE

A. What is a contract of insurance?

B. 1. What are the elements of an insurance contract and briefly discuss each.
2. Make a case digest of the following:
a. Philippine Health Care Providers, Inc. v. CIR, G.R. No. 167330, 18 September
2009
b. Mitsubishi Motors Philippines Salaried Employees Union v. Mitsubishi Motors
Philippines Corp., G.R. No. 175773 June 17, 2013

C. What are the characteristics and nature of insurance contracts? Briefly discuss each.

D. Briefly define the following classes of insurance:

1. Marine
2. Fire

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Set 1 – Insurance; Set 2 – Transportation Law; Set 3 – Banking; Set 4 – Intellectual Property; Set 5 – Special Laws

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 3. Casualty
4. Suretyship
5. Life
6. Microinsurance
7. Compulsory motor vehicle liability insurance
8. Compulsory insurance coverage for agency-hired workers

E. What are variable contracts?

F. 1. Who has Insurable interest in life/health insurance?

2. Who has Insurable interest in property?
3. What is the difference between double insurance and over insurance?
4. Explain the meaning of multiple or several interests on same property?
5. Give a case digest of the following:
a. Malayan Insurance Co. v. Philippine First Ins. Co., July 22, 2012
b. Great Pacific Life Assurance Corp. v. Court of Appeals, 316 SCRA 677

G. 1. When is a contract of insurance perfected?

2. What happens when there is delay in acceptance?
3. Is Delivery of policy necessary in the perfection of an insurance contract?
4. What is the effect of payment of premium?
3. What is meant by the non-default options in life insurance?
4. When may policy holders in life insurance reinstate a lapsed policy?
5. When is the insured entitled to return of premiums paid?
5. Give a case digest of the following:
a. Eternal Gardens Memorial Park v. PhilamLife, G.R. No. 166245, April 9, 2008
b. Gaisano v. Development Insurance and Surety Corp., 27 February 2017

H. 1. What are the devices used by the insurer for ascertaining and controlling risks and
loss?
2. What is the test used to determine whether or not concealment could be a ground
for rescinding an insurance contract?
3. What is the test used to determine whether or not misrepresentation/omission could
be a ground for rescinding an insurance contract?
4. What is the test used to determine whether or not breach of warranty could be a
ground for rescinding an insurance contract?
5. Digest the following cases:

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 a. Country Banker’s Insurance Corporation v. Lianga Bay and Community Multi-
purpose Cooperative, G.R. no. 136914, 25 January 2002

I. 1. When is an insurer liable for loss?

1. What is the rule of Notice and proof of loss in life insurance?
2. Explain the guidelines on claims settlement.
3. When do claims prescribe?
4. Discuss briefly the right of Subrogation
5. Digest the following case/s:
a. Wallen Phil. Shipping, Inc. v. Prudential Guarantee Assurance Inc., G.R. No.
152158

J. Give the requirements for the Business of insurance

K. Discuss the office of the Insurance Commissioner and its powers

-end-