Practice question
An insured peril is stipulated the proximate cause and an uninsured peril only a remote cause. No contrary policy clause or separate exclusion applies. The insurer invokes the remote event alone. Which is correct?
- The insurer automatically escapes every policy
- Only the remote event can matter
- The parties must ignore the stipulated proximate cause
- Section 86’s default supports liability despite that remote cause
- The premium automatically becomes a donation
Legal references
- Insurance Code as amended by RA 10607: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html; Sections 86-88.
Answer this question in flashcards to review your response and continue practicing.