Practice question
Before property insurance is effected, an applicant tells the insurer that the building is owner-occupied. She discovers the error and expressly corrects the statement before the contract goes into effect. The insurer argues that section 41 forbids any pre-effect correction merely because the original answer was already given. Which answer is best?
- Every original answer becomes immutable when spoken.
- Correction is allowed only after a lawsuit starts.
- The correction automatically guarantees every future claim.
- Section 41 permits alteration or withdrawal before insurance is effected; the insurer's stated timing objection is incorrect.
- A correction automatically makes the insurance unlawful.
Legal references
- Insurance Code, as amended by RA 10607, sections 31 and 36–48, https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
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