Practice question
A and B jointly own and jointly insure a warehouse. A transfers her entire interest to B. The policy says insurance ceases upon alienation, and the insurer relies solely on this transfer. No independent coverage issue exists. What does Section24 provide?
- The transfer between the jointly insured owners does not avoid insurance even with that alienation stipulation
- The transfer always avoids insurance because any alienation clause prevails over Section24
- Insurance survives only if B is an unrelated purchaser outside the joint ownership
- The transfer makes A sole owner
- Section24 applies only to transfers to complete strangers
Legal references
- Insurance Code as amended RA10607: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html Sections10,14,16 and20–25.
Answer this question in flashcards to review your response and continue practicing.