Philippine Bar review · Question

Practice question: Double Insurance and Overinsurance

Multiple Choice Medium

Practice question

An applicable valued policy states P900,000. The insured has received P300,000 under another policy for the same overinsured interest. Under Section 96(b), what deduction basis applies?
  1. Ignore the receipt entirely
  2. Deduct only from a later unrelated market estimate
  3. Increase the valuation by the receipt
  4. Deduct the insurer’s office rent
  5. Deduct P300,000 from the agreed policy valuation

Legal references

  • Insurance Code as amended by RA 10607: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html; Sections 83,96(a)-(c).

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