Practice question
A warehouse has an open policy with a P10 million maximum. After a covered loss, the owner insists the maximum is conclusive agreed valuation even though the policy contains no agreement on the property's value. The insurer disputes only that valuation claim. Which is best?
- Every stated limit is automatically an agreed value
- Under an open policy, the value is ascertained at loss; the stated sum is maximum liability rather than conclusive valuation
- The limit proves no insurance ever existed
- The owner must always recover more than the limit
- An open policy can never cover property
Legal references
- Insurance Code as amended by RA 10607, Section 60: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
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