1.

EXPLAIN THE CONCEPT OF INSURANCE

Defintion: Section 2
2. WHAT ARE THE ELEMENTS OF AN INSURANCE CONTRACT AND EXPLAIN EACH
Distinguishing Elements of Contract of Insurance
1) Insurable interest- the insured possesses an interest of some kind susceptible of pecuniary estimation
known as insurable interest;
2) Risk of loss- the happening of designated perils either unknown or contingent, past, or future, will
subject such interest to some kind of loss, whether in the form of injury or damage, or liability.
3) Assumption of risk- the insurer assumes that risk of loss
4) Scheme to distribute the losses- the assumption of risk is part of a general scheme to distribute the
losses among a large number of persons exposed to similar risks.
5) Payment of premium- as consideration for the insurer's promise to undertake the risk of loss, the
insured makes a ratable contribution called premium, to a general insurance fund.
Other elements of a valid insurance contract: (see pp. 19 of De Leon)
1) Consent of the contracting parties
2) Subject matter
3) Consideration
4) Object and Purpose
3. EXPLAIN THE CHARACTERISTICS/NATURE OF INSURANCE CONTRACT
(see pp. 47 of reviewer)
4. CLASSES OF INSURANCE CONTRACTS AND EXPLAIN EACH (see pp. 47 Reviewer)
Classes:
a. Marine
b. Fire
c. Casualty
d. Suretyship
e. Life
f. Compulsory Motor Vehicle Liability Insurance
5. INSURABLE INTEREST
1. Insurable Interest in Life/Health may consist in what? (sec. 10)
2. Insurable Interest in Property Insurance may consist in what? (sec. 14)
3. Explain Double Insurance and Over Insurance (pp. 66-67 Reviewer; pp. 307, 308, 309;
310 De Leon Book)
What is double insurance; elements
What is overinsurance
Difference between the two
Binding Effect of...
Purpose of prohibition...
Rules of Payment of Claims (Sec. 96)
4. Explain Multiple or Several Interest on Same property

6. PERFECTION OF THE CONTRACT OF INSURANCE. Explain the following:

1. Offer and acceptance/consensual (pp. 49 Reviewer)
a. Delay in Acceptance
b. Delivery of Policy
2. Premium payment (p. 64 reviewer)
3. Non-default options in life insurance (
4. Reinstatement of a Lapse Policy of Life Insurance
5. Refund premium when it can be invoked? (pp. 65)
7. RESCISSION OF INSURANCE CONTRACTS. Explain the following:
a. Concealment (pp.57-58 Reviewer)
Meaning
Requisites
Test of Materiality
When Concealment Made
Important Notes
Effect
Concealment in Marine and Other Property Insurance
b. Misrepresentation (pp. 58-59 Reviewer)
When it takes effect
Requisites
Test of Materiality
Effect
Characteristics
c. Breach of Warranties (pp. 60 Reviewer)
Effects
8. CLAIMS SETTLEMENT AND SUBROGATION. Explain the following:
a. Notice and Proof of Loss- (p. 298 onwards DE LEON, pp. 69 REVIEWER)
b. Guidelines on Claims Settlement (p. 593 onwards DE LEON; pp. 69-70 REVIEWER)
1. Unfair Claims Settlement; sanction
2. Prescription of Action
3. Subrogation