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    Perfection of Insurance Bar Question

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    jingmit888
    ALAC offered an insurance policy to persons aged 50 to 75. Quirico applied at age 80 and ALAC approved. Quirico received a cover note while raising funds for premiums. Within 10 days, Quirico was hospitalized. ALAC cannot deny the claim based on age since they approved his application. The issuance of the cover note perfected an insurance contract between Quirico and ALAC until the regular policy could be issued, as a cover note provides temporary coverage pending policy issuance.

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    Perfection of Insurance Bar Question

    Uploaded by

    jingmit888
    189 views1 page
    ALAC offered an insurance policy to persons aged 50 to 75. Quirico applied at age 80 and ALAC approved. Quirico received a cover note while raising funds for premiums. Within 10 days, Quirico was hospitalized. ALAC cannot deny the claim based on age since they approved his application. The issuance of the cover note perfected an insurance contract between Quirico and ALAC until the regular policy could be issued, as a cover note provides temporary coverage pending policy issuance.

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    perfection of insurance bar question with suggested answer.

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    Perfection of Insurance bar question

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    ALAC offered an insurance policy to persons aged 50 to 75. Quirico applied at age 80 and ALAC approved. Quirico received a cover note while raising funds for premiums. Within 10 days, Quirico was hospitalized. ALAC cannot deny the claim based on age since they approved his application. The issuance of the cover note perfected an insurance contract between Quirico and ALAC until the regular policy could be issued, as a cover note provides temporary coverage pending policy issuance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    189 views1 page

    Perfection of Insurance Bar Question

    Uploaded by

    jingmit888
    ALAC offered an insurance policy to persons aged 50 to 75. Quirico applied at age 80 and ALAC approved. Quirico received a cover note while raising funds for premiums. Within 10 days, Quirico was hospitalized. ALAC cannot deny the claim based on age since they approved his application. The issuance of the cover note perfected an insurance contract between Quirico and ALAC until the regular policy could be issued, as a cover note provides temporary coverage pending policy issuance.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Perfection of Insurance Contracts (2009 Bar Question)

    No.IV. Antarctica Life Assurance Corporation (ALAC) publicly offered a specially


    designed insurance policy covering persons between the ages of 50 to 75 who may
    be afflicted with serious and debilitating illnesses. Quirico applied for insurance
    coverage, stating that he was already 80 years old. Nonetheless, ALAC approved his
    application.
    Quirico then requested ALAC for the issuance of a cover note while he was trying to
    raise funds to pay the insurance premium. ALAC granted the request. Ten days after
    he received the cover note, Quirico had a heart seizure and had to be hospitalized.
    He then filed a claim on the policy. (A) Can ALAC validly deny the claim on the
    ground that the insurance coverage, as publicly offered, was available only to
    persons 50 to 75 years of age? Why or why not? (2%)
    SUGGESTED ANSWER:
    No. By approving the application of Quirino who disclosed that he was
    already 80 years old, ALAC waived the age requirement. ALAC is now
    stopped from raising such defense of age of the insured.
    (B)
    Did ALACs issuance of a cover note result in the perfection of an insurance contract
    between Quirico and ALAC? Explain. (3%)
    SUGGESTED ANSWER:
    The issuance of a cover note by ALAC resulted in the perfection of the
    contract of insurance. In that case, it is only because there is delay in the
    issuance of the policy that the cover notes was issued. The cover note is a
    receipt whereby the company agrees to insure the insured for 60 days
    pending the issuance of a regular policy. No separate premium is to be
    paid on a cover note. It is not a separate policy but is integrated in the
    regular policy to be subsequently issued.

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