Practice question
The insured in an applicable nonlife double-insurance overinsurance case has already collected under one policy. It invokes the ordinary freedom to select insurer order as permission to disregard Section 96’s receipt deductions. Which is correct?
- Payment-order choice does not erase the separate deduction rules
- Choosing an insurer automatically waives all deductions
- Each policy necessarily pays its full face regardless of prior receipts
- Only premium refunds matter after payment
- The insured may create unlimited recovery by changing order
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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