Practice question
A policy requires a third person's certificate as preliminary loss proof. The insured exercises reasonable diligence to obtain it, but the person refuses. The insured supplies reasonable evidence that the refusal was not based on just grounds for disbelieving the necessary facts. The insurer insists section 94 makes the physical certificate indispensable in every case. Which answer is best?
- A third person's refusal always defeats the insured.
- Reasonable diligence is irrelevant under the section.
- Only proof of a criminal conviction can replace the certificate.
- Section 94 recognizes the described diligence and refusal-evidence route; the insurer's absolute position is incorrect.
- The refusal automatically guarantees the maximum policy amount.
Legal references
- Insurance Code, as amended by RA 10607, sections 85–94, https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
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