ASCERTAINMENT AND CONTROL OF RISK AND LOSS Flashcards Preview

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Flashcards in ASCERTAINMENT AND CONTROL OF RISK AND LOSS Deck (22)
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1

Four Primary Concerns of the
Parties IN ASCERTANING AND CONTROLLING RISK AND LOSS

1. Correct estimation of the risk;
2. Precise delimitation of the risk;
3. Control of the risk;
4. Determining whether a loss occurred
and if so, the amount of such loss.

2

Devices used for ascertaining and
controlling risk and loss

(CREW-C)

 

1. Concealment

2. REPRESENTATION

3. EXCEPTION

4. WARRANTIES

5. CONDITION

3

REQUISITE OF CONCEALMENT

A. A party knows a fact which he
neglects to communicate or
disclose to the other.
b. Such party concealing is duty
bound to disclose such fact to
the other.

c. Such party concealing makes no
warranty as to the fact
concealed.
d. The other party has not the
means of ascertaining the fact
concealed.
e. Material

4

TRUE OR FALSE

 

TEST OF MATERIALITY

 

Determined by
the event AND by the probable
and reasonable influence of the facts
upon the party to whom the
communication is due, in forming his
estimate of the advantages of the
proposed contract, or in making his
inquiries 

FALSE

 

Determined not by
the event, but solely by the probable
and reasonable influence of the facts
upon the party to whom the
communication is due, in forming his
estimate of the advantages of the
proposed contract, or in making his
inquiries 

5

C0NTRAST RIGHT OF RECISION ON

ORDINARY INSURANCE

AND MARINE INSURANCE

ORDINARY: THE FACT OF CONCEALMENT ON THE PART OF THE INSURED GIVES THE INSURER THE RIGHT TO RESCIND THE CONTRACT OF INSURANCE

 

MARINE: THE FACT OF CONCEALMENT IN A MARINE INSURANCE IN ANY OF THE MATTERS ENUMERATED UNDER SEC112 OF THE INSURANCE CODE DOES NOT VITIATE THEE ENTIRE CONTRACT

THE INSURER IS EXONERATED ONLY IF THE FACTS CONCEALED IS THE CAUSE OF THE LOSS, IF THE CAUSE IS SOMEHTING ELSE, THE INSURER IS STILL BE LIABLE

6

MATTERS THAT NEED NOT BE DISCLOSED IN THE ABSENCE OF INQUIRIES 

 

(POWER- NATURE)

1. THOSE WHICH PROVE OR TEND TO PROVE THE EXISTENCE OF A RISK EXCLDED BY A WARRANTY, AND WHICH ARE NOT OTHERWISE MATERIAL

2. THOSE WHICH OTHER KNOWS

3. THOSE WHICH THE OTHER WAIVES COMMUNICATION

4. THOSE WHICH, IN THE EXERCISE OF ORDINARY CARE, THE OTHER OUGHT TO KNOW AND OF WHICH, THE FORMER HAS NO REASON TO SUPPOSE HIM IGNORANT

4. THOSE WHICH RELATE TO A RISK EXCEPTED FROM THE POLICY AND WHICH ARE NOT OTHERWISE MATERIAL

6. INFORMATION OF THE NATURE OR AMOUNT OF THE INTEREST OF ONE INSURED EXCCEPT AS PRESCRIBED BY SEC51

7

MATTERS THAT NEED NOT BE DISCLOSED EVEN IN THE ANSWER TO INQUIRIENS

1. INFORMATION OF HIS OWN JUDGMENT

2. GENERAL CAUSES WHICH ARE OPEN TO HIS INQUIRY, EQUALLY WITH THE OTHER AND ALL GENERAL USAGES OF TRADE

8

MATTERS THAT MUST BE DISCLOSED EVEN IN THE ABSENCE INQUIRIES

1. THOSE WHICH THE OTHER HAS NO MEANS OF ASCERTAINING

2. THOSE MATERIAL TO THE CONTRACT

3. THOSE WHICH THE PARRTY WITH THEE DUTY TO COMMUNICATE MAKES NO WARRANTY

9

TRUE OR FALSE

 

GENERAL RULE ON PROOF OF FRAUD IN CONCEALMENT:

THE INSURER NEEDS TO PROVE FRAUD IN ORDER TO RESCIND A CONTRACT ON THE GROUND OF CONCEALMENT

FALSE

 

THE INSURER NEED NOT PROVE FRAUD IN ORDER TO RESCIND A CONTRACT ON THE GROUND OF CONCEALMENT (SATURNINO V PHILAM)

10

TRUE OR FALSE 

 

REPRESENTATIONs are factual
statements made by the insured at the
time of, or prior to, the issuance of the
policy to give information to the insurer
and induce him to enter into the
insurance contract.

 

THEY ARE CONSIDERED AN ACTIVE FORM OF CONCEALMENT ALTHOUGH THEY ARE FACTUL

TRUE

11

TRUE OR FALSE 

THERE IS FALSE REPRESENTATION IF IT IS TRUE AT THE TIME THE CONTRACT TAKES EFFECT ALTHOUGH FALSE AT THE TIME IT WAS MADE AND VICE VERESA

 

FALSE

 

THERE IS NO FALSE REPRESENTATION IF IT IS TRUE AT THE TIME THE CONTRACT TAKES EFFECT ALTHOUGH FALSE AT THE TIME IT WAS MADE AND VICE VERESA

12

TRUE OR FALSE 

THERE IS FALSE REPRESENTATION IF IT IS TRUE AT THE TIME THE CONTRACT WAS MADE ALTHOUGH FALSE AT THE TIME THE CONTRACT TAKES EFFECT

TRUE

13

TRUE OR FALSE

 

A REPRESENTATION NOT BEING PART OF THE CONTRACT OF INSURANCE MAY BE ALTERED OR WITHDRAWN AT ANY TIME 

FALSE

 

REPRESENTATION MAY BE WITHDRAWN BEFORE THE CONTRACT TAKES EFFECT BUT NOT AFTERWARDS SINCE THE INSURER HAS ALREADY BEEN LED BY THE REPRESENTATION IN ASSUMING THE RISK CONTEMPLATED IN THE CONTRACT

14

Requisites of a false representation
(misrepresentation):

a. The insured stated a fact which
is untrue.
b. Such fact was stated with
knowledge that it is untrue and
with intent to deceive or which
he states positively as true
without knowing it to be true
and which has a tendency to
mislead.
c. Such fact in either case is
material to the risk.

15

CHARACTERISTICS OF MISREPRESENTATION

 

 

a. It is not a part of the contract but
merely a collateral inducement to it.
b. It may be oral or written.
c. It is made at the same time of issuing
the policy or before but not after.
d. It may be ALTERED or withdrawn before
the insurance is effected but not
afterwards.
e. It always refers to the date the
contract goes into effect.

16

KINDS OF WARRANTIES

1. EXPRESSED 

2. IMPLIED

3. AFFIRMATIVE

4. PROMISSORY

17

TRUE OR FALSE

Violation of material
warranty or of a material provision of a
policy will entitle the other party to
rescind the contract even if the loss occurs before the time of
performance of the warranty.

FALSE

Loss occuring before the time of
performance of the warranty is an exception

 

18

IT IS AN ACTION THAT THE INSURED MUST TAKE OR CONTINUE TO TAKE FOR THE INSURANCE POLICY TO REMAIN IN FORCE AND THE INSURANCE COMPANY TO PROCESS A CLAIM

CONDITION

19

KINDS OF CONDITIONS

 

1. CONDITION PRECEDENT

2. CONDITION SUBSEQUENT

20

KIND OF CONDITION THAT prevents
the accrual of cause of action

Condition precedent

21

KIND OF CONDITION THAT avoids
the policy or entitles the insurer
to rescind

CONDITION SUBSEQUENT

22