Practice question
An insurer’s assents to transfer of insurance from mortgagor D to mortgagee Bank and, at assent, imposes further obligations on Bank, making a new contract with it. D later commits an act that would defeat his own rights. On these stipulated Section9 facts, what is its effect on Bank’s rights as assignee?
- D’s acts cannot affect Bank’s rights under that new contract
- D’s acts necessarily defeat Bank’s rights in every mortgage arrangement
- The insurer’s assent is immaterial even when a new contract is made
- A mortgagee can never have contractual rights
- Bank must obtain D’s spousal consent to invoke Section9
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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