Practice question
An insured gives a genuine promissory representation about a future risk-control measure. A court finds a material fraudulent scheme proved by clear and convincing evidence, identifies the later date when the representation became false, and finds timely rescission with no waiver or other bar. Under Section45, from what point does the injured party’s statutory entitlement to rescind arise?
- From the time the material representation becomes false
- Only when the insurer later earns a profit
- Always from a date before the representation existed
- Only after the insured is criminally convicted
- Never, because Section45 excludes promissory representations
Legal references
- Insurance Code as amended RA10607: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html Section45.
- Insular Life Assurance v. Heirs of Alvarez, GR207526 and210156, October3 2018, Leonen MAIN decision: https://lawphil.net/judjuris/juri2018/oct2018/gr_207526_2018.html PartI.C: proof requirement for false representation.
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