POWER QUIZ TOPICS

INSURANCE POWER QUIZ 1. PD 612, AS AMENDED BY RA 10607 - PD 612, as amended by concealment or misrepresentation of the insured or his loss. (First Integrated Bonding and Ins. Co., Inc. v. Hernando,
RA 10607 is also known as the Insurance Code of the agent. (Sec. 48) 199 SCRA 769 [1991])
I. FIRST PART Philippines. 14. INSURABLE INTEREST IN PROPERTY INSURANCE – can be 7. NO FAULT CLAUSE – Refers to a clause in CMVLI, where the
2. DEVIATION – It is a departure from the course of the voyage determined by asking if the insured have interest in the injured third party or passenger is given the option to file a
1. SURETYSHIP – A Contract of suretyship is an agreement insured, mentioned in Sec. 123 and Sec. 124, or an property, whether real or personal, or any relation thereto claim for death or injury without the necessity of proving
whereby a party called the surety guarantees the unreasonable delay in pursuing the voyage or the or liability in respect thereof of such nature that the fault or negligence of any kind. (Sec. 387, IC & Sundiang-
performance by another party called the principal or obligor commencement of an entirely different voyage (IC, Sec. 125). contemplated peril might directly damnify the insured. Aquino)
of an obligation or undertaking in favor of a third party called 3. 30 DAYS (PROPERTY INSURANCE) – The proceeds shall be (Power Quiz Definition) 8. REINSURANCE THROUGH A TREATY/AUTOMATIC TREATY –
the obligee. (Sec. 177, IC) paid within 30 days after the receipt by the insurer of proof 15. REPRESENTATION – is an oral or written statement of a fact A kind of insurance where there is a prior agreement for the
2. EXPECTED PROFIT – Cargo owners in marine insurance have of loss and ascertainment of the loss or damage by or condition affecting the risk, made by the insured to re-insurer to accept the insurance ceded by the re-
insurable interest over the cargo and the expected profits. agreement of the parties or by arbitration but not later than insurer, tending to induce insurer to assume risk. (Power insured/original insurer. (Sundiang-Aquino)
3. FIRE INSURANCE – It is a contract of indemnity by which the 90 days from such receipt of proof of loss, whether or not Quiz Defition) 9. GRACE PERIOD – Refers to a period after the date of the
insurer, for a consideration, agrees to indemnify the insured ascertainment is had or made (IC, Sec. 249). 16. OTHER INSURANCE CLAUSE – Is a clause in the policy that premium is due to remit the
against loss of or damage by fire, lightning, windstorm, 4. EXCEPTION – Exceptions make more definite the coverage provides that the policy shall be void if the insured procures 10. MATERIALITY/TEST OF MATERIALITY – It is determined by
tornado or earthquake and other allied risks. (Sec. 169, IC & indicated by the general distinction of the risk indicated by additional insurance without the consent of the insurer. the probable and reasonable influence of the facts upon the
Sundiang Aquino). the general description of the risk by exclusing certain (Pioneer Insurance and Surety Corp. v. Yap, 61 SCRA 426 party to whom the communication is due, in forming his
4. CONCEALMENT – A neglect to communicate that which a specified risks that otherswise would be included under the [1974]) It is a warranty that entitles the insurer to rescind in estimate of the disadvantages of the proposed contract, or
party knows and ought to communicate, is called a general language describing the risks assumed. (Sundiang- case of breach. (General Ins. And Suerty Corp. v. Ng Hua, 106 in making his inquiries (IC, Sec. 31).
concealment. (Sec. 26, IC) Aquino) PHIL 1117) 11. JETTISON – Refers to the act of salvaging cargo to the extent
5. CASUALTY INSURANCE – Casualty insurance is insurance 5. COVER NOTES - Are interim or preparatory contracts of and pupose for the common benefit of all. (Power Quiz
covering loss or liability arising from accident or mishap, insurance. (Power Quiz Definition) III. THIRD PART Definition)
excluding certain types of loss which by law or custom are 6. OPEN POLICY - is one in which the value of the thing insured AUTHOR’S NOTE: Although the same definition is within the
considered as falling exclusively within the scope of other is not agreed upon, and the amount of the insurance merely 1. SIX (6) MONTHS – Under the CMVLI, notice of claim must be meaning of Jettison, the same is lacking in the main act of
types of insurance such as fire or marine. (Sec. 176, IC) represents the insurer’s maximum liability. The value of such filed within 6 months from the date of the accident goods being thrown overboard to save the remaining cargo
6. POLICY – The written instrument in which a contract of thing insured shall be ascertained at the time of the loss. otherwise the claim shall be deemed waived. (Sec. 379, IC) and/or the ship. Here are better definitions of Jettison.
insurance is set forth, is called a policy of insurance. (Sec. 49, (Sec. 60, IC) 2. UBERRIMAE FIDAE – Refers to one of the characteristics of a
IC) 7. AUTHORIZED DRIVER CLAUSE – This refers to a clause in a contract of insurance where it is deemed a one of perfect This is usually involved in “General Average” where the
7. PERILS OF NAVIGATION – Also known as Perils of the Sea CMVLI where the driver other than the insured owner must good faith. goods are thrown overboard to save other cargoes and/or
8. SUBROGATED – Article 2207 of the Civil Code finds be licensed to drive the motor vehicle otherwise the insurer 3. CO-INSURANCE – Under marine insurance, co-insurance the ship. (Aquino, 2018)
application in a certain concept under a contract of insurance is excused from liability. (Power Quiz Definition) clause applies where
which provide that if the plaintiff’s property has been 8. 1 YEAR (CMVLI) - An action under CMVLI must be filed in  The loss is partial; and Act of throwing overboard part of a vessel’s cargo or hull in
insured, and he has received indemnity from the insurance court or the Insurance Commission within one (1) year from  The amount of insurance is less than the value of the hopes of saving a ship from sinking. (GN, 2018)
company for the injury or loss arising out of wrong or breach the denial of the claim. (Sundiang-Aquino) property insured (Sundiang Sr. & Aquino, 2014). 12. PROFESSIONAL REINSURER – Refers to any partnership,
of contract complained of, the insurance company shall be 9. GENERAL AVERAGE LOSS – The insurer of the vessel or cargo 4. TWO (2) YEARS (SUICIDE) – The insurer shall be liable in case association, or corporation that transacts solely and
subrogated to the rights of the insured against the that saved shall be liable for General Average Loss. of suicide by the insured if: exclusively reinsurance business in the Philippines. (Power
wrongdoer or the person who has violated the contract. (Art. (Sundiang-Aquino)  The suicide is committed after the policy has been in Quiz Definition & GN, 2018)
2207, NCC) 10. RUNNING POLICY - One Which Contemplates successive force for a period of 2 years from the date of its issue or 13. CANCELLATION – The remedy of an insurer of an insurance
9. ABANDONMENT – Is the act of the insured by which, after a insurances, and which provides that the object of the policy of its last reinstatement. policy other than life upon prior notice to the insured if there
constructive total loss, he declares the relinquishment to the may be from time to time defined, especially as to the  The suicide is committed within a shorter period as is a conviction of a crime out of acts increasing the hazard
insurer of his interest in the thing insured. (Sec. 140, IC) subjects of insurance, by additional statements or provided in the policy. insured against among others. (Power Quiz Definition)
𝑨𝑴𝑶𝑼𝑵𝑻 𝑶𝑭 𝑷𝑶𝑳𝑰𝑪𝒀
10. PREMIUM – Refers to the consideration paid to an insurer indorsements. (Sec. 62, IC)  The suicide is committed in the state of insanity 14. 𝒙 𝑳𝑶𝑺𝑺 – Each insurer in double
𝑻𝑶𝑻𝑨𝑳 𝑰𝑵𝑺𝑼𝑹𝑨𝑵𝑪𝑬 𝑻𝑨𝑲𝑬𝑵
for undertaking to indemnify the insured against a specified 11. P100,000 – The insurer of a private vehicle has a maximum regardless of the date of commission (IC, Sec. 183). insurance is bound to contribute ratably to the loss in
peril (De Leon, 2010). liability without regard to death, indemnity or CVMLI 5. COGNITION THEORY – An insurance contract is a consensual proportion to the amount for which he is liable under his
11. SEAWORTHINESS – A ship is seaworthy when reasonably fit amounting to P 100,000/ for public vehicle P 200,000.00 contract and is therefore perfected the moment there is a contract which shall be computed by the given formula. (Sec.
to perform the service and to encounter the ordinary perils 12. LOSS PAYABLE CLAUSE – Also known as Open Mortgage meeting of minds with respect to the object and the cause or 96[e] & Sundiang-Aquino)
of the voyage contemplated by the parties to the policy. (Sec. Clause. consideration (See Arts. 1315, 138, and 1319, NCC.) What is
116, IC) 13. INCONTESTABILITY CLAUSE – After a policy of life insurance being followed in insurance contracts is what is know as the IV. EXTRA TOPICS
12. BENEFICIARY – Is the person designated to receive when the made payable on the death of the insured shall have been in “Cognition Theory”
risk attaches. (Sundiang-Aquino) force during the lifetime of the insured for a period of two 6. STIPULATION POUR AUTRUI – Third party liability in the 1. INSURANCE COMMISSIONER
(2) years from the date of its issue or of its last nature of a stipulation pour autrui, in which case, the third 2. FRIENDLY FIRE
II. SECOND PART reinstatement, the insurer cannot prove that the policy is party may directly sue the insurer upon the occurrence of the 3. BANCASSURANCE
void ab initio or is rescindable by reason of the fraudulent 4. BARRATRY

RE: ELLIS LAGASCA 1