Philippine Bar review · Question

Practice question: General Principles

Multiple Choice Medium

Practice question

An enterprise proposes to make insurance contracts as insurer but argues that it is outside Section2(b) until it actually signs its first policy. Which answer is correct?
  1. Proposing to make such contracts is included in the statutory insurance-business definition
  2. Only completed claims count as insurance business
  3. It must first earn a profit before the definition applies
  4. It is exempt until its tenth policy
  5. An unsigned proposal always removes regulatory relevance

Legal references

  • Insurance Code as amended RA10607: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html Sections2(b),3 and5–9.

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