Practice question
A covered buyer has paid exactly thirteen qualifying years totaling ₱3,000,000. Cancellation is being processed, and the buyer demands a ninety-five-percent statutory cash surrender value solely because of the lengthy payment history. No independent refund ground is asserted. What rate and amount does section 3 provide?
- Fifty percent regardless of years.
- One hundred percent.
- Ninety-five percent.
- Ninety percent, or ₱2,700,000, under the statutory ceiling.
- No refund because more than ten years were paid.
Legal references
- https://lawphil.net/statutes/repacts/ra1972/ra_6552_1972.html — RA 6552, sections 3–4.
- https://lawphil.net/judjuris/juri2007/jan2007/gr_167452_2007.html — Jestra Development v Pacifico, GR 167452, January 30 2007, main opinion: down-payment schedule and penalty distinction.
- https://lawphil.net/judjuris/juri2019/nov2019/gr_212740_2019.html — Spouses Francisco v Battung, GR 212740, November 13 2019, main opinion: installment value and time.
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