A.I. Powered: Philippine Bar Reviewer

Question

III. INSURANCE LAW

B. Insurable Interest (Sections 10-25)

In a real estate transaction, Carlos sold his property to Juan. After the sale, Carlos decided to take out an insurance policy on the property, with himself as the named insured. The insurance company issued the policy without any objection. Unfortunately, a fire broke out and the property was completely destroyed. Carlos then filed a claim for the insurance proceeds.

Discuss the following:

1. Whether Carlos has an insurable interest in the property and the basis for your answer;
2. Whether Carlos can claim the insurance proceeds despite the fact that he no longer owned the property at the time of the loss; and
3. If Carlos is not entitled to the insurance proceeds, who, if anyone, can validly claim the proceeds and why.

---

Answer