Practice question
A defendant’s unlawful damaging act causes PHP500,000 of proved insured property loss. The insurer indemnifies PHP350,000. Article2207 applies, and no release or other issue alters the claims. Which allocation follows?
- The insurer is subrogated for the paid portion and the owner may recover the PHP150,000 deficiency
- The wrongdoer is automatically discharged for the entire loss
- The owner may collect the whole loss again personally without regard to subrogation
- The insurer may recover every unrelated debt of the wrongdoer
- The unpaid portion automatically becomes a donation
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles20,2195–2199,2200,2203,2205,2207.
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