Practice question
For an insurance application, an insured lacks personal knowledge of a fact and in good faith repeats information believed true, expressly explaining that it came from an independent third person. It did not come from the insured's agent under a duty to supply it. The insurer says section 43 always makes the insured personally responsible for its truth despite those facts. Which answer best applies that section?
- The insured is always a guarantor of all third-party information.
- Disclosure that the information is secondhand is legally irrelevant.
- Only information from a duty-bound insured's agent receives the exception.
- No statement may ever be repeated on another's information.
- The section recognizes the stated good-faith, disclosed-information situation and does not impose responsibility for truth in the same way; the duty-bound-agent qualification must be distinguished.
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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