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?
- Ignore the receipt entirely
- Deduct only from a later unrelated market estimate
- Increase the valuation by the receipt
- Deduct the insurer’s office rent
- 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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