Insurance Online Quiz Week 4

Instruction: Write your answers on the following problems and submit your yellow
papers on the next meeting.

1—Respondents contend that although Steamship Mutual is a P & I Club, it is not engaged in
the insurance business in the Philippines. It is merely an association of vessel owners who
have come together to provide mutual protection against liabilities incidental to shipowning. Is
the contention tenable?

2—Private respondent contends that the Insurance Commissioner has jurisdiction to

take cognizance of the complaint in the exercise of its quasi-judicial powers. The
Solicitor General, upholding the jurisdiction of the Insurance Commissioner, claims that
under Sections 414 and 415 of the Insurance Code, the Commissioner has authority to
nullify the alleged illegal provisions of the Contract of Agency. Is the respondent
correct?

3 The petitioner refused to pay the claim on the ground that the policy in favor of
the respondent had ceased to be in force on the date the United States declared war
against Germany, the respondent Corporation (though organized under and by virtue of
the laws of the Philippines) being controlled by the German subjects and the petitioner
being a company under American jurisdiction when said policy was issued on October
1, 1941. Was the petition meritorious.

4 Plaintiffs maintain that, as beneficiaries, they are entitled to receive the proceeds of the
policies minus all sums due for premiums in arrears. They allege that non-payment of the
premiums was caused by the closing of defendant's offices in Manila during the Japanese
occupation and the impossible circumstances created by war. Defendant on the other hand
asserts that the policies had lapsed for non-payment of premiums, in accordance with the
contract of the parties and the law applicable to the situation. Decide.

5 The plaintiff asserts that it was the defendant's duty to notify her husband of its
postal address during the war, and that its failure to do so excused deliquency in the
payment of the premiums. The plaintiff cites the provision of the contract which states
that "all premiums subsequent to the first year are payable to the Company's
authorized cashier at the place stated in the fourth page hereof, or at such other place
instead thereof as may be designated from time to time by noticed to the Company
mailed to the Insured at his last known post office address." Decide.