Practice question
A policy contains an immaterial administrative provision. It does not declare that violation of that provision avoids coverage. After a loss, the insurer proves a minor breach and argues that every immaterial breach automatically voids every policy. No other ground is asserted. Which is best?
- Section 75 does not avoid the policy for an immaterial breach absent the specified avoidance stipulation
- Every policy provision has identical automatic effect
- Immateriality is never relevant under the Code
- The insurer may invent an avoidance clause after loss
- All premiums become damages automatically
Legal references
- Insurance Code as amended by RA 10607, Section 75: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
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