ACTIVITY: 1

MULTIPLE CHOICE QUESTIONS |

BSSLAW4 AAI DATE DUE: October 20, 2020

TURQUEZA DARYL DAVID daryldavidturqueza@gmail.com

TOPIC 6: INSURANCE LAW

ANS # STATEMENTS AND CHOICES
D 1. Presidential Decree No. 912 shall be known as:
A. INSURANCE ACT OF THE PHILIPPINES
B. THE INSURANCE LAW
C. INSURANCE CODE OF THE PHILIPPINES
D. THE INSURANCE CODE
C 2. It is an agreement whereby one undertakes for a
consideration to indemnify another against loss, damage
or liability arising from an unknown or contingent
event.
A. INSURANCE
B. INSURANCE AGREEMENT
C. CONTRACT OF INSURANCE
D. CONTRACT OF SURETYSHIP
D 3. A/n_______________ shall be deemed to be an insurance
contract, within the meaning of this Code, only if made
by a surety who or which, as such, is doing an insurance
business as hereinafter provided.
A. INSURANCE
B. INSURANCE AGREEMENT
C. CONTRACT OF INSURANCE
D. CONTRACT OF SURETYSHIP
A 4. The term “doing an insurance business” or “transacting
an insurance business”, within
the meaning of this Code, shall include the following,
except:
A. MAKING ANY BUSINESS IN SUBSTANCE EQUIVALENT TO ANY
OF THE FOREGOING IN A MANNER DESIGNED TO EVADE THE
PROVISIONS OF THIS CODE
B. MAKING OR PROPOSING TO MAKE, AS INSURER, ANY
INSURANCE CONTRACT
C. MAKING OR PROPOSING TO MAKE, AS SURETY, ANY
CONTRACT OF SURETYSHIP AS A VOCATION AND NOT AS
MERELY INCIDENTAL TO ANY OTHER LEGITIMATE BUSINESS
OR ACTIVITY OF THE SURETY
D. DOING ANY KIND OF BUSINESS, INCLUDING A REINSURANCE
BUSINESS, SPECIFICALLY RECOGNIZED AS CONSTITUTING
THE DOING OF AN INSURANCE BUSINESS WITHIN THE
 MEANING OF THIS CODE
B 5. Any ________ of the age of eighteen years or more, may,
notwithstanding such minority, contract for life, health
and accident insurance, with any insurance company duly
authorized to do business in the Philippines, provided
the insurance is taken on his own life and the
beneficiary appointed is the minor’s estate or the
minor’s father, mother, husband, wife, child, brother or
sister.
A. LEGAL
B. MINOR
C. MAJOR
D. DEFINITE
A 6. The preceding _________ does not authorize insurance for
or against the drawing of any lottery, or for or against
any chance or ticket in a lottery drawing a prize.
A. SECTION
B. ARTICLES
C. PROVISIONS
D. LAW
C 7. _______ kinds of insurance are subject to the provisions
of this chapter so far as the provisions can apply.
A. SOME
B. NOT ALL
C. ALL
D. DISTINCT
B 8. Which of the following is not duly authorized to
transact insurance business as elsewhere provided in
this code, may be an insurer?
A. PERSON
B. COOPERATIVE
C. CORPORATION
D. ASSOCIATION
A 9. Anyone except a public __________ may be insured.
A. ENEMY
B. ALLY
C. FIGURE
D. SERVANT
C 10. Unless the policy otherwise provides, where a mortgagor
of property effects insurance in his own name providing
that the loss shall be payable to the mortgagee, or
assigns a policy of insurance to a mortgagee, the
insurance is deemed to be:
A. UPON THE INTEREST OF THE MORTGAGOR, WHO CEASE TO BE
A PARTY TO THE ORIGINAL CONTRACT, WILL HAVE THE
SAME EFFECT.
B. UPON THE INTEREST OF THE MORTGAGOR, WHO DOES NOT
 CEASE TO BE A PARTY TO THE ORIGINAL CONTRACT, WILL
HAVE DIFFERENT EFFECT.
C. UPON THE INTEREST OF THE MORTGAGOR, WHO DOES NOT
CEASE TO BE A PARTY TO THE ORIGINAL CONTRACT, WILL
HAVE THE SAME EFFECT.
D. UPON THE INTEREST OF THE MORTGAGOR, WHO CEASE TO BE
A PARTY TO THE ORIGINAL CONTRACT, WILL HAVE
DIFFERENT EFFECT.
A 11. If an insurer assents to the transfer of an insurance
from a mortgagor to a mortgagee:
A. THE ACT OF THE MORTGAGOR CANNOT AFFECT THE RIGHTS
OF SAID ASSIGNEE.
B. THE ACT OF THE MORTGAGOR CAN AFFECT THE RIGHTS OF
SAID ASSIGNEE.
C. THE ACT OF THE MORTGAGOR MAY AFFECT THE RIGHTS OF
SAID ASSIGNEE.
D. THE ACT OF THE MORTGAGOR WILL AFFECT THE RIGHTS OF
SAID ASSIGNEE.
B 12. Every person has an insurable interest in the life and
health, except:
A. OF HIMSELF, OF HIS SPOUSE AND OF HIS CHILDREN
B. OF ANY INDEPENDENT PERSON
C. OF ANY PERSON UPON WHOSE LIFE ANY ESTATE OR
INTEREST VESTED IN HIM DEPENDS
D. OF ANY PERSON ON WHOM HE DEPENDS WHOLLY OR IN PART
FOR EDUCATION OR SUPPORT
B 13. The insured shall have the ________ to change the
beneficiary he designated in the policy, unless he has
expressly waived this right in said policy.
A. POWER
B. RIGHT
C. AUTHORITY
D. OPPORTUNITY
A 14. The interest of a beneficiary in a life insurance policy
shall be __________ when the beneficiary is the
principal, accomplice, or accessory in wilfully bringing
about the death of the insured; in which event, the
nearest relative of the insured shall receive the
proceeds of said insurance if not otherwise
disqualified.
A. FOREFEITED
B. INVALIDATED
C. VOID
D. NOT COUNTED
D 15. Every interest in property, whether real or personal, or
any relation thereto, or liability in respect thereof,
of such nature that a contemplated peril might directly
 damnify the insured, is a/n:
A. INTEREST OF INSURANCE
B. INSURED INTEREST
C. INSURANCE OF INTEREST
D. INSURABLE INTEREST
B 16. A carrier or depository of any kind has an insurable
interest in a thing held by him as such, to the extent
of his liability
A. BUT TO EXCEED THE VALUE THEREOF.
B. BUT NOT TO EXCEED THE VALUE THEREOF.
C. EXCEEDING THE VALUE THEREOF.
D. LIMITED TO THE VALUE THEREOF.
B 17. A mere contingent or expectant interest in anything, not
founded on an actual right to the thing, nor upon any
valid contract for it, is:
A. INSURABLE
B. NOT INSURABLE
C. INSURED
D. AUTOMATICALLY INSURED
A 18. The measure of an insurable interest in property is the
extent to which the insured might be:
A. DAMNIFIED BY LOSS OR INJURY THEREOF.
B. NOT DAMNIFIED BY LOSS OR INJURY THEREOF.
C. DAMNIFIED BY PROFIT OR INJURY THEREOF.
D. NOT DAMNIFIED BY PROFIT OR INJURY THEREOF.
C 19. No contract or policy of insurance on property shall be
enforceable except for the benefit of some person having
an _________ in the property insured.
A. INTEREST
B. INSURANCE
C. INSURABLE INTEREST
D. INSURED INTEREST
A 20. An interest in property insured ____________ when the
insurance takes effect, and when the loss occurs, but
not exist in the meantime.
A. MUST EXIST
B. NEED NOT EXIST
C. MUST BE ESTABLISHED
D. NEED NOT BE ESTABLISHED
C 21. In the cases of life, accident, and health insurance, a
change of interest in any part of a thing insured
unaccompanied by a corresponding change in interest in
the insurance, _________ the insurance to an equivalent
extent, until the interest in the thing and the interest
in the insurance are vested in the same person.
A. STOPS
B. CONTINUES
 C. SUSPENDS
D. RESTARTS
C 22. A change in interest in a thing insured, after the
occurrence of an injury which results in a loss,
_____________ the right of the insured to indemnity for
the loss.
A. AFFECTS
B. AVOIDS
C. DOES NOT AFFECT
D. DOES NOT AVOID
D 23. A change of interest in one or more several distinct
things, separately insured by one policy, ____________
the insurance as to the others.
A. AFFECTS
B. AVOIDS
C. DOES NOT AFFECT
D. DOES NOT AVOID
D 24. A change on interest, by will or succession, on the
death of the insured, ____________ insurance; and his
interest in the insurance passes to the person taking
his interest in the thing insured.
A. AFFECTS
B. AVOIDS
C. DOES NOT AFFECT
D. DOES NOT AVOID
D 25. A transfer of interest by one of several partners, joint
owners, or owners in common, who are jointly insured, to
the others, _____________ an insurance even though it
has been agreed that the insurance shall cease upon an
alienation of the thing insured.
A. AFFECTS
B. AVOIDS
C. DOES NOT AFFECT
D. DOES NOT AVOID
A 26. Every stipulation in a policy of insurance for the
payment of loss whether the
person insured has or has not any interest in the
property insured, or that the policy shall
be received as proof of such interest, and every policy
executed by way of gaming or
wagering, is:
A. VOID
B. VALID
C. INVALID
D. VOIDABLE
B 27. A neglect to communicate that which a party knows and
ought to communicate, is called a:
 A. SECRETION
B. CONCEALMENT
C. ENSCONCE
D. SECLUSION
B 28. A ______________ entitles the injured party to rescind a
contract of insurance.
A. SECRETION
B. CONCEALMENT
C. ENSCONCE
D. SECLUSION
D 29. An intentional and fraudulent omission, on the part of
one insured, to communicate information of matters
proving or tending to prove the falsity of a warranty,
entitles the insurer to:
A. STOP
B. ABORT
C. REPEAL
D. RESCIND
A 30. Neither party to a contract of insurance is bound to
communicate information of the matters following,
except:
A. TO WHICH OTHERS DON’T KNOW
B. 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
C. THOSE OF WHICH THE OTHER WAIVES COMMUNICATION
D. THOSE WHICH RELATE TO A RISK EXCEPTED FROM THE
POLICY AND WHICH ARE NOT OTHERWISE MATERIAL
C 31. Materiality is to be determined:
A. SOLELY BY THE EVENT
B. BY THE EVENT
C. NOT BY THE EVENT
D. DEPENDING ON EVENT
B 32. Each party to a contract of insurance is bound to know
all the general causes which are open to his inquiry,
___________ with that of the other, and which may affect
the political or material perils contemplated; and all
general usages of trade.
A. THE SAME
B. EQUALLY
C. UNEQUAL
D. DIFFERENT
A 33. The right to information of material facts may be
waived, either by the terms of insurance or by neglect
to make inquiry as to such facts, where they are
distinctly implied in other facts of which information
is:
 A. COMMUNICATED
B. PRESENTED
C. DELIVERED
D. SENT
C 34. Information of the nature or amount of the interest of
one insured _____________ communicated unless in answer
to an inquiry, except as prescribed by Section 51.
A. SHOULD BE
B. NEEDS TO BE
C. NEED NOT BE
D. SHOULD NOT BE
B 35. Neither party to a contract of insurance is bound to
____________, even upon inquiry, information of his own
judgment upon the matters in question.
A. PRESENT
B. COMMUNICATE
C. DELIVER
D. SEND
C 36. A representation may be:
A. ORAL
B. WRITTEN
C. ORAL OR WRITTEN
D. LEGAL
D 37. A representation may be made at:
A. THE TIME OF ISSUANCE OF THE POLICY
B. BEFORE THE ISSUANCE OF THE POLICY
C. AFTER THE ISSUANCE OF THE POLICY
D. THE TIME OF, OR BEFORE THE ISSUANCE OF THE POLICY
D 38. The language of a representation is to be interpreted by
the same rules as the language of:
A. CONTRACTS OF INSURANCE
B. INSURED CONTRACT
C. INSURANCE
D. CONTRACTS IN GENERAL
B 39. A representation as to the future is to be deemed a/n
____________, unless it appears that it was merely a
statement of belief or expectation.
A. CONTRACT
B. PROMISE
C. AGREEMENT
D. VALID
C 40. A representation cannot qualify an express provision in
a contract of insurance, but it may qualify a/n
________________.
A. WARRANTY
B. EXPRESSED WARRANTY
C. IMPLIED WARRANTY
 D. SECURED INSURANCE
D 41. A representation may be altered or ______________ before
the insurance is effected, but not afterwards.
A. REVISED
B. CHANGED
C. TERMINATED
D. WITHDRAWN
B 42. A representation must be presumed to refer to the date
on which the contract:
A. IS DEEMED VALID
B. GOES INTO EFFECT
C. IS VALIDATED
D. IS THEREFORE APPROVED
A 43. When a person insured has no personal knowledge of a
fact, he may nevertheless repeat information which he
has upon the subject, and which he believes to be true,
with the explanation that he does so on the information
of others; or he may submit the information, in its
whole extent, to the insurer; and in neither case is he
responsible for
its truth, unless it proceeds from an agent of the
insured, whose duty it is to:
A. GIVE THE INFORMATION
B. REPEAT THE INFORMATION
C. RELAY THE INFORMATION
D. LOOK FOR INFORMATION
D 44. A representation is to be deemed _________ when the
facts fail to correspond with its assertions or
stipulations.
A. VALID
B. VOID
C. TRUE
D. FALSE
D 45. If a representation is false in a material point,
whether affirmative or promissory, the injured party is
entitled to rescind the contract from the time when the
representation becomes ____________.
A. VALID
B. VOID
C. TRUE
D. FALSE
B 46. The materiality of a representation is determined by the
same rules as the materiality of a:
A. SECRETION
B. CONCEALMENT
C. ENSCONCE
D. SECLUSION
D 47. The provisions of this chapter apply as well to a
modification of a contract of insurance as to:
A. GENERAL PROVISIONS
B. CONTRACT FORMATION
C. SUBSEQUENT FORMATION
D. ORIGINAL FORMATION
C 48. Whenever a right to rescind a contract of insurance is
given to the insurer by any provision of this chapter,
such right must be _____________ previous to the
commencement of an action on the contract.
A. ENJOYED
B. APPLIED
C. EXERCISED
D. USED
A 49. The written instrument in which a contract of insurance
is set forth, is called:
A. POLICY OF INSURANCE
B. INSURANCE POLICY
C. POLICY
D. INSURANCE
C 50. The policy shall be in printed form which may contain
____________.
A. PHRASES
B. WORDS
C. BLANK SPACES
D. NO BLANK SPACES
B 51. A policy of insurance must specify the following,
except:
A. THE PARTIES BETWEEN WHOM THE CONTRACT IS MADE
B. THE AMOUNT TO BE INSURED IN THE CASES OF OPEN OR
RUNNING POLICIES
C. THE PROPERTY OR LIFE INSURED
D. THE RISKS INSURED AGAINST
B 52. Within _________________ after issue of a cover note, a
policy shall be issued in lieu thereof, including within
its terms the identical insurance bound under the cover
note and the premium therefor.
A. FIFTY DAYS
B. SIXTY DAYS
C. SEVENTY DAYS
D. EIGHTY DAYS
D 53. The insurance proceeds shall be applied __________ to
the proper interest of the person in whose name or for
whose benefit it is made unless otherwise specified in
the policy.
A. ONLY
B. SOLELY
 C. PROPERLY
D. EXCLUSIVELY
D 54. When an insurance contract is executed with an agent or
____________ as the insured, the fact that his principal
or beneficiary is the real party in interest may be
indicated by describing the insured as agent or trustee,
or by other general words in the policy.
A. VOLUNTEER
B. REPRESENTATIVE
C. PROXY
D. TRUSTEE
D 55. To render an insurance effected by one partner or part-
owner, applicable to the interest of his co-partners or
other part-owners, it is necessary that the terms of the
policy should be such as are applicable to the joint or:
A. PERSONAL INTEREST
B. PERSONAL PURPOSES
C. COMMON PURPOSES
D. COMMON INTEREST
D 56. When the description of the insured in a policy is so
general that it may comprehend any person or any class
of persons, only he who can show that it was intended to
include him, can claim the __________ of the policy.
A. RIGHTS
B. EFFECTS
C. REWARDS
D. BENEFIT
B 57. A policy may be so framed that it will inure to the
benefit of whom so ever, during the continuance of the
risk, may become the _____________ of the interest
insured.
A. BENEFICIARY
B. OWNER
C. CO-OWNER
D. PRINCIPAL
B 58. The mere transfer of a thing insured does not transfer
the policy, but __________ it until the same person
becomes the owner of both the policy and the thing
insured.
A. TRANSFERS
B. SUSPENDS
C. TERMINATES
D. INVALIDATES
B 59. A policy is either one of the following, except:
A. VALUED
B. EXCLUSIVE
C. RUNNING
 D. OPEN
D 60. An open policy is one in which the value of the thing
insured is not agreed upon, and the amount of the
insurance merely represents the insurer’s maximum:
A. COMPENSATION
B. BENEFIT
C. LOSS
D. LIABILITY
A 61. A/n ___________ policy is one which expresses on its
face an agreement that the thing insured shall be valued
at a specific sum.
A. VALUED
B. EXCLUSIVE
C. RUNNING
D. OPEN
C 62. A _____________ policy is one which contemplates
successive insurances, and which provides that the
object of the policy may be from time to time defined,
especially as to the subjects of insurance, by
additional statements or endorsements.
A. VALUED
B. EXCLUSIVE
C. RUNNING
D. OPEN
A 63. A condition, stipulation, or agreement in any policy of
insurance, limiting the time for commencing an action
thereunder to a period of less than ___________ from the
time when the cause of action accrues, is void.
A. ONE YEAR
B. TWO YEARS
C. THREE YEARS
D. FOUR YEARS
C 64. No policy of insurance other than ________ shall be
cancelled by the insurer except upon prior notice
thereof to the insured.
A. HEALTH
B. PROPERTY
C. LIFE
D. BUSINESS
B 65. All notices of cancellation mentioned in the preceding
section shall be:
A. ORAL
B. IN WRITING
C. ORAL OR IN WRITING
D. ORAL AND IN WRITING
D 66. In case of insurance other than life, unless the insurer
at least _____________ in advance of the end of the
 policy period mails or delivers to the named insured at
the address shown in the policy notice of its intention
not to renew the policy or to condition its renewal upon
reduction of limits or elimination of coverage.
A. THIRTY DAYS
B. THIRTY FIVE DAYS
C. FORTY DAYS
D. FORTY FIVE DAYS
C 67. A warranty is:
A. EXPRESSED
B. IMPLIED
C. EITHER EXPRESSED OR IMPLIED
D. EXPRESSED AND IMPLIED
D 68. A warranty may relate to the following, except:
A. PAST
B. PRESENT
C. FUTURE
D. NONE OF THE ABOVE
D 69. No particular form of ____________ is necessary to
create a warranty.
A. ACTION
B. WRITING
C. CONTRACT
D. WORDS
C 70. Every express warranty, made at or before the execution
of a policy, must be contained in the ____________
itself.
A. WARRANTY
B. INSURANCE
C. POLICY
D. PROVISION
C 71. A statement in a policy, of a matter relating to the
person or thing insured, or to the risk, as fact, is a/n
__________ thereof.
A. WARRANTY
B. IMPLIED WARRANTY
C. EXPRESS WARRANTY
D. EXPRESS OR IMPLIED WARRANTY
D 72. A statement in a policy, which imparts that it is
intended to do or not to do a thing which materially
affects the risk, is a/n ___________ that such act or
omission shall take place.
A. ASSURANCE
B. INSURANCE
C. PROOF
D. WARRANTY
A 73. When, before the time arrives for the performance of a
 warranty relating to the future, a loss insured against
happens, or performance becomes unlawful at the place of
the contract, or impossible, the omission to fulfil the
warranty does not _________ the policy.
A. AVOID
B. VALIDATE
C. INVALIDATE
D. CONTINUE
D 74. The violation of a material warranty, or other material
provision of a policy, on the part of either party
thereto, entitles the other to:
A. STOP
B. ABORT
C. REPEAL
D. RESCIND
A 75. A/n _________ may declare that a violation of specified
provisions thereof shall avoid it; otherwise the breach
of an immaterial provision does not avoid the policy.
A. POLICY
B. WARRANTY
C. INSURANCE
D. CONTRACT OF INSURANCE
C 76. A breach of _______________ without fraud merely
exonerates an insurer from the time that it occurs, or
where it is broken in its inception, prevents the policy
from attaching to the risk.
A. CONTRACT
B. INSURANCE
C. WARRANTY
D. POLICY
A 77. Is entitled to payment of the premium as soon as the
thing insured is exposed to the peril insured against.
A. INSURER
B. INSUREE
C. GUARANTOR
D. GUARANTEE
D 78. Employees of the Republic of the Philippines, including
its political subdivisions and instrumentalities, and
government-owned or -controlled corporations, may pay
their insurance premiums and loan obligations through:
A. CASH
B. CREDIT
C. BANK ACCOUNT DEDUCTION
D. SALARY DEDUCTION
A 79. An acknowledgment in a policy or contract of insurance
or the receipt of premium is conclusive evidence of its:
A. PAYMENT
 B. ACTUAL RECEIPT
C. ACCEPTANCE
D. AGRREMENT
A 80. A person insured is entitled to a return of premium, as
to the __________ premium if no part of his interest in
the thing insured be exposed to any
of the perils insured against.
A. WHOLE
B. PART
C. ACTUAL
D. IMPLIED
B 81. If a peril insured against has existed, and the insurer
has been liable for any period, however short, the
insured is ____________ to return of premiums, so far as
that particular risk is concerned.
A. ENTITLED
B. NOT ENTITLED
C. GRANTED
D. NOT GRANTED
B 82. A person insured is _____________ to a return of the
premium when the contract is voidable, and subsequently
annulled under the provisions of the Civil Code.
A. ENTITLED
B. NOT ENTITLED
C. GRANTED
D. NOT GRANTED
B 83. In case of an over insurance by several insurers other
than life, the insured is entitled to a rateable return
of the premium, proportioned to the amount by which the
aggregate ____________ insured in all the policies
exceeds the insurable value of the thing at risk.
A. TOTAL
B. SUM
C. DIFFERENCE
D. ACTUAL
A 84. An insurer may contract and accept payments, in addition
to regular premium, for the purpose of paying future
premiums on the policy or to increase the:
A. BENEFITS
B. VALUE
C. EQUIVALENT
D. TOTAL
B 85. An agreement not to transfer the claim of the insured
against the insurer after the loss has happened is
__________ if made before the loss except as otherwise
provided in the case of life insurance.
A. VALID
 B. VOID
C. ACCEPTABLE
D. INVALLID
D 86. An insurer is liable where the thing insured is
_____________ from a peril insured against that would
otherwise have caused a loss.
A. RECOVERED
B. SAVED
C. REPLENISHED
D. RESCUED
B 87. All __________ in a notice of loss, or in preliminary
proof thereof, which the insured might remedy, and which
the insurer omits to specify to him, without unnecessary
delay, as grounds of objection, are waived.
A. FAULTS
B. DEFECTS
C. FLAWS
D. DEFICIENCIES
D 88. _________ in the presentation to an insurer of notice or
proof of loss is waived if caused by any act of him, or
if he omits to take objection promptly and specifically
upon that ground.
A. IMPEDIMENT
B. DEFERRAL
C. DETAIN
D. DELAY
B 89. If the policy requires, by way of preliminary proof of
loss, the certificate or __________ of a person other
than the insured, is sufficient for the insured to use
reasonable diligence to procure it.
A. EVIDENCE
B. TESTIMONY
C. AFFIDAVIT
D. STATEMENT
C 90. Exists where the same person is insured by several
insurers separately in respect to the same subject and
interest.
A. INSURANCE
B. WARRANTY
C. DOUBLE INSURANCCE
D. DOUBLE WARRANTY
C 91. One by which an insurer procures a third person to
insure him against loss or liability by reason of such
original insurance.
A. CONTRACT OF INSURANCE
B. CONTRACT OF WARRANTY
C. CONTRACT OF REINSURANCE
 D. CONTRACT OF DOUBLE WARRANTY
B 92. A/n _______________ is presumed to be a contract of
indemnity against liability, and not merely against
damage.
A. INSURANCE
B. DOUBLE INSURANCE
C. REINSURANCE
D. WARRANTY
D 93. The __________ insured has no interest in a contract of
reinsurance.
A. FINAL
B. ACTUAL
C. INITIAL
D. ORIGINAL
A 94. Marine Insurance includes insurance against loss of or
damages to the following, except:
A. ENGINE
B. CARGO
C. VESSEL
D. GOODS
C 95. The _______ of a ship has in all cases an insurable
interest in it.
A. COVENANT
B. MANAGER
C. CHARTER
D. OWNER
D 96. The insurable interest of the owner of the ship
hypothecated by bottomry is only the ____________ of its
value over the amount secured by bottomry.
A. TOTAL
B. SUM
C. DIFFERENCE
D. EXCESS
B 97. Signifies all the benefits derived by the owner, either
from the chartering of the ship or its employment for
the carriage of his own goods or those of others.
A. INSURANCE
B. FREIGHTAGE
C. SECURITIES
D. INTEREST
C 98. The insurable interest in expected freightage exists in
case of a/n:
A. SHIPPING PARTY
B. VOYAGE
C. CHARTER PARTY
D. BOARDING
D 99. One who has an interest in the thing from which profits
 are expected to proceed has an insurable interest in
the:
A. INTEREST
B. PROCEEDS
C. BENEFITS
D. PROFITS
D 100. The charterer of a ship has an insurable interest in it,
to the extent that he is ___________ to be damnified by
its loss.
A. RESPONSIBLE
B. ACCOUNTABLE
C. CHARGEABLE
D. LIABLE
A 101. Neither party to a contract of insurance is bound to
communicate information of the matters following,
except:
A. TO WHICH OTHERS DON’T KNOW
B. 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
C. THOSE OF WHICH THE OTHER WAIVES COMMUNICATION
D. THOSE WHICH RELATE TO A RISK EXCEPTED FROM THE
POLICY AND WHICH ARE NOT OTHERWISE MATERIAL
C 102. Materiality is to be determined:
A. SOLELY BY THE EVENT
B. BY THE EVENT
C. NOT BY THE EVENT
D. DEPENDING ON EVENT
B 103. Each party to a contract of insurance is bound to know
all the general causes which are open to his inquiry,
___________ with that of the other, and which may affect
the political or material perils contemplated; and all
general usages of trade.
A. THE SAME
B. EQUALLY
C. UNEQUAL
D. DIFFERENT
A 104. The right to information of material facts may be
waived, either by the terms of insurance or by neglect
to make inquiry as to such facts, where they are
distinctly implied in other facts of which information
is:
A. COMMUNICATED
B. PRESENTED
C. DELIVERED
D. SENT
C 105. Information of the nature or amount of the interest of
 one insured _____________ communicated unless in answer
to an inquiry, except as prescribed by Section 51.
A. SHOULD BE
B. NEEDS TO BE
C. NEED NOT BE
D. SHOULD NOT BE
B 106. Neither party to a contract of insurance is bound to
____________, even upon inquiry, information of his own
judgment upon the matters in question.
A. PRESENT
B. COMMUNICATE
C. DELIVER
D. SEND
C 107. A representation may be:
A. ORAL
B. WRITTEN
C. ORAL OR WRITTEN
D. LEGAL
D 108. A representation may be made at:
A. THE TIME OF ISSUANCE OF THE POLICY
B. BEFORE THE ISSUANCE OF THE POLICY
C. AFTER THE ISSUANCE OF THE POLICY
D. THE TIME OF, OR BEFORE THE ISSUANCE OF THE POLICY
D 109. The language of a representation is to be interpreted by
the same rules as the language of:
A. CONTRACTS OF INSURANCE
B. INSURED CONTRACT
C. INSURANCE
D. CONTRACTS IN GENERAL
B 110. A representation as to the future is to be deemed a/n
____________, unless it appears that it was merely a
statement of belief or expectation.
A. CONTRACT
B. PROMISE
C. AGREEMENT
D. VALID
C 111. A representation cannot qualify an express provision in
a contract of insurance, but it may qualify a/n
________________.
A. WARRANTY
B. EXPRESSED WARRANTY
C. IMPLIED WARRANTY
D. SECURED INSURANCE
D 112. A representation may be altered or ______________ before
the insurance is effected, but not afterwards.
A. REVISED
B. CHANGED
 C. TERMINATED
D. WITHDRAWN
B 113. A representation must be presumed to refer to the date
on which the contract:
A. IS DEEMED VALID
B. GOES INTO EFFECT
C. IS VALIDATED
D. IS THEREFORE APPROVED
A 114. When a person insured has no personal knowledge of a
fact, he may nevertheless repeat information which he
has upon the subject, and which he believes to be true,
with the explanation that he does so on the information
of others; or he may submit the information, in its
whole extent, to the insurer; and in neither case is he
responsible for
its truth, unless it proceeds from an agent of the
insured, whose duty it is to:
A. GIVE THE INFORMATION
B. REPEAT THE INFORMATION
C. RELAY THE INFORMATION
D. LOOK FOR INFORMATION
D 115. A representation is to be deemed _________ when the
facts fail to correspond with its assertions or
stipulations.
A. VALID
B. VOID
C. TRUE
D. FALSE
D 116. If a representation is false in a material point,
whether affirmative or promissory, the injured party is
entitled to rescind the contract from the time when the
representation becomes ____________.
A. VALID
B. VOID
C. TRUE
D. FALSE
B 117. The materiality of a representation is determined by the
same rules as the materiality of a:
A. SECRETION
B. CONCEALMENT
C. ENSCONCE
D. SECLUSION
D 118. The provisions of this chapter apply as well to a
modification of a contract of insurance as to:
A. GENERAL PROVISIONS
B. CONTRACT FORMATION
C. SUBSEQUENT FORMATION
 D. ORIGINAL FORMATION
C 119. Whenever a right to rescind a contract of insurance is
given to the insurer by any provision of this chapter,
such right must be _____________ previous to the
commencement of an action on the contract.
A.ENJOYED
B. APPLIED
C. EXERCISED
D. USED
A 120. The written instrument in which a contract of insurance
is set forth, is called:
A. POLICY OF INSURANCE
B. INSURANCE POLICY
C. POLICY
D. INSURANCE
C 121. The policy shall be in printed form which may contain
____________.
A. PHRASES
B. WORDS
C. BLANK SPACES
D. NO BLANK SPACES
B 122. A policy of insurance must specify the following,
except:
A. THE PARTIES BETWEEN WHOM THE CONTRACT IS MADE
B. THE AMOUNT TO BE INSURED IN THE CASES OF OPEN OR
RUNNING POLICIES
C. THE PROPERTY OR LIFE INSURED
D. THE RISKS INSURED AGAINST
B 123. Within _________________ after issue of a cover note, a
policy shall be issued in lieu thereof, including within
its terms the identical insurance bound under the cover
note and the premium therefor.
A. FIFTY DAYS
B. SIXTY DAYS
C. SEVENTY DAYS
D. EIGHTY DAYS
D 124. The insurance proceeds shall be applied __________ to
the proper interest of the person in whose name or for
whose benefit it is made unless otherwise specified in
the policy.
A. ONLY
B. SOLELY
C. PROPERLY
D. EXCLUSIVELY
D 125. When an insurance contract is executed with an agent or
____________ as the insured, the fact that his principal
or beneficiary is the real party in interest may be
 indicated by describing the insured as agent or trustee,
or by other general words in the policy.
A. VOLUNTEER
B. REPRESENTATIVE
C. PROXY
D. TRUSTEE
D 126. To render an insurance effected by one partner or part-
owner, applicable to the interest of his co-partners or
other part-owners, it is necessary that the terms of the
policy should be such as are applicable to the joint or:
A. PERSONAL INTEREST
B. PERSONAL PURPOSES
C. COMMON PURPOSES
D. COMMON INTEREST
D 127. When the description of the insured in a policy is so
general that it may comprehend any person or any class
of persons, only he who can show that it was intended to
include him, can claim the __________ of the policy.
A. RIGHTS
B. EFFECTS
C. REWARDS
D. BENEFIT
B 128. A policy may be so framed that it will inure to the
benefit of whom so ever, during the continuance of the
risk, may become the _____________ of the interest
insured.
A. BENEFICIARY
B. OWNER
C. CO-OWNER
D. PRINCIPAL
B 129. The mere transfer of a thing insured does not transfer
the policy, but __________ it until the same person
becomes the owner of both the policy and the thing
insured.
A. TRANSFERS
B. SUSPENDS
C. TERMINATES
D. INVALIDATES
B 130. A policy is either one of the following, except:
A. VALUED
B. EXCLUSIVE
C. RUNNING
D. OPEN
D 131. An open policy is one in which the value of the thing
insured is not agreed upon, and the amount of the
insurance merely represents the insurer’s maximum:
A. COMPENSATION
 B. BENEFIT
C. LOSS
D. LIABILITY
A 132. A/n ___________ policy is one which expresses on its
face an agreement that the thing insured shall be valued
at a specific sum.
A. VALUED
B. EXCLUSIVE
C. RUNNING
D. OPEN
C 133. A _____________ policy is one which contemplates
successive insurances, and which provides that the
object of the policy may be from time to time defined,
especially as to the subjects of insurance, by
additional statements or endorsements.
A. VALUED
B. EXCLUSIVE
C. RUNNING
D. OPEN
A 134. A condition, stipulation, or agreement in any policy of
insurance, limiting the time for commencing an action
thereunder to a period of less than ___________ from the
time when the cause of action accrues, is void.
A. ONE YEAR
B. TWO YEARS
C. THREE YEARS
D. FOUR YEARS
C 135. No policy of insurance other than ________ shall be
cancelled by the insurer except upon prior notice
thereof to the insured.
A. HEALTH
B. PROPERTY
C. LIFE
D. BUSINESS
B 136. All notices of cancellation mentioned in the preceding
section shall be:
A. ORAL
B. IN WRITING
C. ORAL OR IN WRITING
D. ORAL AND IN WRITING
D 137. In case of insurance other than life, unless the insurer
at least _____________ in advance of the end of the
policy period mails or delivers to the named insured at
the address shown in the policy notice of its intention
not to renew the policy or to condition its renewal upon
reduction of limits or elimination of coverage.
A. THIRTY DAYS
 B. THIRTY FIVE DAYS
C. FORTY DAYS
D. FORTY FIVE DAYS
C 138. A warranty is:
A. EXPRESSED
B. IMPLIED
C. EITHER EXPRESSED OR IMPLIED
D. EXPRESSED AND IMPLIED
D 139. A warranty may relate to the following, except:
A. PAST
B. PRESENT
C. FUTURE
D. NONE OF THE ABOVE
D 140. No particular form of ____________ is necessary to
create a warranty.
A. ACTION
B. WRITING
C. CONTRACT
D. WORDS
C 141. Every express warranty, made at or before the execution
of a policy, must be contained in the ____________
itself.
A. WARRANTY
B. INSURANCE
C. POLICY
D. PROVISION
C 142. A statement in a policy, of a matter relating to the
person or thing insured, or to the risk, as fact, is a/n
__________ thereof.
A. WARRANTY
B. IMPLIED WARRANTY
C. EXPRESS WARRANTY
D. EXPRESS OR IMPLIED WARRANTY
D 143. A statement in a policy, which imparts that it is
intended to do or not to do a thing which materially
affects the risk, is a/n ___________ that such act or
omission shall take place.
A. ASSURANCE
B. INSURANCE
C. PROOF
D. WARRANTY
A 144. When, before the time arrives for the performance of a
warranty relating to the future, a loss insured against
happens, or performance becomes unlawful at the place of
the contract, or impossible, the omission to fulfil the
warranty does not _________ the policy.
A. AVOID
 B. VALIDATE
C. INVALIDATE
D. CONTINUE
D 145. The violation of a material warranty, or other material
provision of a policy, on the part of either party
thereto, entitles the other to:
A. STOP
B. ABORT
C. REPEAL
D. RESCIND
A 146. A/n _________ may declare that a violation of specified
provisions thereof shall avoid it; otherwise the breach
of an immaterial provision does not avoid the policy.
A. POLICY
B. WARRANTY
C. INSURANCE
D. CONTRACT OF INSURANCE
C 147. A breach of _______________ without fraud merely
exonerates an insurer from the time that it occurs, or
where it is broken in its inception, prevents the policy
from attaching to the risk.
A. CONTRACT
B. INSURANCE
C. WARRANTY
D. POLICY
A 148. Is entitled to payment of the premium as soon as the
thing insured is exposed to the peril insured against.
A. INSURER
B. INSUREE
C. GUARANTOR
D. GUARANTEE
D 149. Employees of the Republic of the Philippines, including
its political subdivisions and instrumentalities, and
government-owned or -controlled corporations, may pay
their insurance premiums and loan obligations through:
A. CASH
B. CREDIT
C. BANK ACCOUNT DEDUCTION
D. SALARY DEDUCTION
A 150. An acknowledgment in a policy or contract of insurance
or the receipt of premium is conclusive evidence of its:
A. PAYMENT
B. ACTUAL RECEIPT
C. ACCEPTANCE
D. AGRREMENT
A 151. A person insured is entitled to a return of premium, as
to the __________ premium if no part of his interest in
 the thing insured be exposed to any
of the perils insured against.
A. WHOLE
B. PART
C. ACTUAL
D. IMPLIED
B 152. If a peril insured against has existed, and the insurer
has been liable for any period, however short, the
insured is ____________ to return of premiums, so far as
that particular risk is concerned.
A. ENTITLED
B. NOT ENTITLED
C. GRANTED
D. NOT GRANTED
B 153. A person insured is _____________ to a return of the
premium when the contract is voidable, and subsequently
annulled under the provisions of the Civil Code.
A. ENTITLED
B. NOT ENTITLED
C. GRANTED
D. NOT GRANTED
B 154. In case of an over insurance by several insurers other
than life, the insured is entitled to a rateable return
of the premium, proportioned to the amount by which the
aggregate ____________ insured in all the policies
exceeds the insurable value of the thing at risk.
A. TOTAL
B. SUM
C. DIFFERENCE
D. ACTUAL
A 155. An insurer may contract and accept payments, in addition
to regular premium, for the purpose of paying future
premiums on the policy or to increase the:
A. BENEFITS
B. VALUE
C. EQUIVALENT
D. TOTAL
B 156. An agreement not to transfer the claim of the insured
against the insurer after the loss has happened is
__________ if made before the loss except as otherwise
provided in the case of life insurance.
A. VALID
B. VOID
C. ACCEPTABLE
D. INVALLID
D 157. An insurer is liable where the thing insured is
_____________ from a peril insured against that would
 otherwise have caused a loss.
A. RECOVERED
B. SAVED
C. REPLENISHED
D. RESCUED
B 158. All __________ in a notice of loss, or in preliminary
proof thereof, which the insured might remedy, and which
the insurer omits to specify to him, without unnecessary
delay, as grounds of objection, are waived.
A. FAULTS
B. DEFECTS
C. FLAWS
D. DEFICIENCIES
D 159. _________ in the presentation to an insurer of notice or
proof of loss is waived if caused by any act of him, or
if he omits to take objection promptly and specifically
upon that ground.
A. IMPEDIMENT
B. DEFERRAL
C. DETAIN
D. DELAY
B 160. If the policy requires, by way of preliminary proof of
loss, the certificate or __________ of a person other
than the insured, is sufficient for the insured to use
reasonable diligence to procure it.
A. EVIDENCE
B. TESTIMONY
C. AFFIDAVIT
D. STATEMENT
C 161. Exists where the same person is insured by several
insurers separately in respect to the same subject and
interest.
A. INSURANCE
B. WARRANTY
C. DOUBLE INSURANCCE
D. DOUBLE WARRANTY
C 162. One by which an insurer procures a third person to
insure him against loss or liability by reason of such
original insurance.
A. CONTRACT OF INSURANCE
B. CONTRACT OF WARRANTY
C. CONTRACT OF REINSURANCE
D. CONTRACT OF DOUBLE WARRANTY
B 163. A/n _______________ is presumed to be a contract of
indemnity against liability, and not merely against
damage.
A. INSURANCE
 B. DOUBLE INSURANCE
C. REINSURANCE
D. WARRANTY
D 164. The __________ insured has no interest in a contract of
reinsurance.
A. FINAL
B. ACTUAL
C. INITIAL
D. ORIGINAL
A 165. Marine Insurance includes insurance against loss of or
damages to the following, except:
A. ENGINE
B. CARGO
C. VESSEL
D. GOODS
C 166. The _______ of a ship has in all cases an insurable
interest in it.
A. COVENANT
B. MANAGER
C. CHARTER
D. OWNER
D 167. The insurable interest of the owner of the ship
hypothecated by bottomry is only the ____________ of its
value over the amount secured by bottomry.
A. TOTAL
B. SUM
C. DIFFERENCE
D. EXCESS
B 168. Signifies all the benefits derived by the owner, either
from the chartering of the ship or its employment for
the carriage of his own goods or those of others.
A. INSURANCE
B. FREIGHTAGE
C. SECURITIES
D. INTEREST
C 169. The insurable interest in expected freightage exists in
case of a/n:
A. SHIPPING PARTY
B. VOYAGE
C. CHARTER PARTY
D. BOARDING
D 170. One who has an interest in the thing from which profits
are expected to proceed has an insurable interest in
the:
A. INTEREST
B. PROCEEDS
C. BENEFITS
 D. PROFITS
D 171. The charterer of a ship has an insurable interest in it,
to the extent that he is ___________ to be damnified by
its loss.
A. RESPONSIBLE
B. ACCOUNTABLE
C. CHARGEABLE
D. LIABLE
A 172. Neither party to a contract of insurance is bound to
communicate information of the matters following,
except:
A. TO WHICH OTHERS DON’T KNOW
B. 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
C. THOSE OF WHICH THE OTHER WAIVES COMMUNICATION
D. THOSE WHICH RELATE TO A RISK EXCEPTED FROM THE
POLICY AND WHICH ARE NOT OTHERWISE MATERIAL
C 173. Materiality is to be determined:
A. SOLELY BY THE EVENT
B. BY THE EVENT
C. NOT BY THE EVENT
D. DEPENDING ON EVENT
B 174. Each party to a contract of insurance is bound to know
all the general causes which are open to his inquiry,
___________ with that of the other, and which may affect
the political or material perils contemplated; and all
general usages of trade.
A. THE SAME
B. EQUALLY
C. UNEQUAL
D. DIFFERENT
D 175. No policy of _________ insurance shall be pledged,
hypothecated, or transferred to any person, firm or
company who acts as agent for or otherwise represents
the issuing company.
A. LIFE
B. HEALTH
C. CASUALTY
D. FIRE
C 176. ____________ insurance is insurance covering loss or
liability arising from accident or mishap, excluding
certain types of loss which by law or custom are
considered as falling exclusively within the scope of
other types of insurance such as fire or marine.
A. LIFE
B. HEALTH
 C. CASUALTY
D. FIRE
D 177. A contract of ___________ is an agreement whereby a
party called the surety guarantees the performance by
another party called the principal or obligor of an
obligation or undertaking in favor of a third party
called the obligee.
A. INSURANCE
B. WARRANTY
C. CONCEALMENT
D. SURETYSHIP
D 178. The liability of the surety or sureties shall be
__________ and several with the obligor and shall be
limited to the amount of the bond.
A. UNILATERAL
B. CONSENSUAL
C. ONEROUS
D. JOINT
C 179. The __________ is entitled to payment of the premium as
soon as the contract of suretyship or bond is perfected
and delivered to the obligor.
A. OBLIGEE
B. INSURER
C. SURETY
D. DEBTOR
D 180. No contract of suretyship or bonding shall be _________
unless and until the premium therefor has been paid.
A. APPROVED
B. ACCEPTED
C. GRANTED
D. VALID
A 181. If the contract of suretyship or bond is not accepted
by, or filed with the obligee, the surety shall
___________ only a reasonable amount, not exceeding
fifty percent (50%) of the premium due thereon as
service fee plus the cost of stamps or other taxes
imposed for the issuance of the contract or bond.
A. COLLECT
B. PAY
C. GIVE
D. PROMISE
A 182. If the non-acceptance of the bond be due to the fault or
negligence of the surety, no such service fee, stamps or
taxes shall be collected.
A. COLLECTED
B. PAID
C. GIVEN
 D. PROMISED
B 183. In the case of a continuing bond, the obligor shall
________ the subsequent annual premium as it falls due
until the contract of suretyship is cancelled by the
obligee or by the Commissioner or by a court of
competent jurisdiction, as the case may be.
A. COLLECT
B. PAY
C. GIVE
D. PROMISE
D 184. Pertinent provisions of the Civil Code of the
Philippines shall be applied in a suppletory character
whenever necessary in interpreting the provisions of a
contract of:
A. PARTNERSHIP
B. INSURANCE
C. WARRANTY
D. SURETYSHIP
A 185. _________ insurance is insurance on human lives and
insurance appertaining thereto or connected therewith.
A. LIFE
B. DEATH
C. CASUALTY
D. HEALTH
B 186. An insurance upon life may be made payable on the
_____________ of the person, or on his surviving a
specified period, or otherwise contingently on the
continuance or cessation of life.
A. BIRTH
B. DEATH
C. LIFE
D. BIRTH OR DEATH
A 187. Every contract or pledge for the payment of endowments
or annuities shall be considered a:
A. LIFE INSURANCE
B. PROPERTY INSURANCE
C. CASUALTY INSURANCE
D. HEALTH INSURANCE
188. The insurer in a life insurance contract shall be liable
in case of suicide only when it is committed after the
policy has been in force for a period of _________ from
the date of its issue or of its last reinstatement,
unless the policy provides a shorter period.
A. TWO DAYS
B. TWO WEEKS
C. TWO MONTHS
D. TWO YEARS
C 189. That suicide committed in the state of insanity shall be
___________ regardless of the date of commission.
A. APPLICABLE
B. APPLIED
C. COMPENSABLE
D. MADE
A 190. A policy of insurance upon life or health ________ pass
by transfer, will or succession to any person, whether
he has an insurable interest or not, and such person may
recover upon it whatever the insured might have
recovered.
A. MAY
B. MAY NOT
C. CAN
D. CAN NOT
C 191. Notice to an insurer of a transfer or bequest thereof is
not necessary to preserve the __________ of a policy of
insurance upon life or health, unless thereby expressly
required.
A. AVAILABILITY
B. APPLICABILITY
C. VALIDITY
D. EFFECTIVITY
C 192. A financial product or service that meets the risk
protection needs of the poor.
A. INSURANCE
B. WARRANTY
C. MICROINSURANCE
D. MICROWARRANTY
C 193. All companies regulated by the Commission, unless
otherwise required by law, should comply with the:
A. FINANCIAL REPORTING STANDARDS
B. FINANCIAL ACCOUNTING STANDARDS
C. FINANCIAL REPORTING FRAMEWORKS
D. FINANCIAL ACCOUNTING AND REPORTING FRAMEWORK
B 194. The statutory financial reports and the annual
statements are to be submitted to the:
A. COURT
B. COMMISSION
C. GOVERNMENT
D. AUTHORITY
C 195. Means a set of accounting and reporting principles,
standards, interpretations and pronouncements that must
be adopted in the preparation and submission of the
statutory financial statements and reports.
A. FINANCIAL REPORTING STANDARDS
B. FINANCIAL ACCOUNTING STANDARDS
 C. FINANCIAL REPORTING FRAMEWORKS
D. FINANCIAL ACCOUNTING AND REPORTING FRAMEWORK
A 196. The main purpose of the statutory statements is to:
A. PRESENT IMPORTANT INFORMATION ABOUT THE LEVEL OF
RISK AND SOLVENCY SITUATION OF INSURERS
B. PRESENT IMPORTANT INFORMATION ABOUT THE LEVEL OF
SOLVENCY AND LIQUIDITY SITUATION OF INSURERS
C. PRESENT IMPORTANT INFORMATION ABOUT THE LEVEL OF
RISK AND LIQUIDITY SITUATION OF INSURERS
D. PRESENT IMPORTANT INFORMATION ABOUT THE LEVEL OF
SOLVENCY OR INSOLVENCY SITUATION OF INSURERS
A 197. Who shall take into account international standards
concerning solvency and insurance company reporting as
well as generally accepted actuarial principles
concerning financial reporting promulgated by the
Actuarial Society of the Philippines?
A. COMMISSIONER
B. COURT
C. GOVERNMENT
D. PRESIDENT
B 198. For purposes of this Code, the term insurer or insurance
company shall include all of the following, except:
A. PARTNERSHIPS
B. SOLE PROPRIETORSHIPS
C. COOPERATIVES
D. CORPORATIONS
C 199. "Every entity receiving any such certificate of
authority shall be subject to the insurance and other
applicable laws of the Philippines and to the
jurisdiction and supervision of the:
A. LAW
B. COURT
C. COMMISSIONER
D. GOVERNMENT
D 200. No insurance company shall transact any insurance
business in the Philippines until after it shall have
obtained a certificate of ___________ for that purpose
from the Commissioner upon application therefor and
payment by the company concerned of the fees hereinafter
prescribed.
A. APPROVAL
B. CONFIRMATION
C. VALIDITY
D. AUTHORITY
C 201. Which of the following is not a characteristic of a
person who may be elected or appointed director or
officer of insurance companies?
 A. A PERSON WITH GOOD MORAL CHARACTER
B. A PERSON WITH UNQUESTIONED INTEGRITY
C. A PERSON WITH JUSTIFIABLE JUDGMENT
D. A COMPETENT PERSON
D 202. No person shall concurrently be a Director and/or
Officer of an insurance company and a/n _______ company.
A. BUSINESS
B. NON-PROFIT
C. GOVERNMENT OWNED
D. ADJUSTMENT
A 203. A _________ insurance company may lend to any of its
policyholders upon the security of the value of its
policy such sum as may be determined pursuant to the
provisions of the policy.
A. LIFE
B. HEALTH
C. PROPERTY
D. CASUALTY
B 204. No insurance company shall ________ any of its money or
deposits to any person, corporation or association.
A. LEND
B. LOAN
C. GIVE
D. SEND
D 205. No loan by any insurance company on the security of
_____________ shall be made unless the title to such
shall have first been registered in accordance with the
existing Land Registration Act.
A. LAND
B. PROPERTY
C. EQUIPMENT
D. REAL ESTATE
B 206. An insurance company may do the following, except one,
to such property, real and personal, as may have been
mortgaged, pledged, or conveyed to it in good faith in
trust for its benefit by reason of money loaned by it in
pursuance of the regular business of the company.
A. PURCHASE
B. SELL
C. HOLD
D. CONVEY
D 207. Shall include interest on funded and unfunded debt,
amortization of debt discount, and rentals for leased
properties.
A. CHARGES
B. LEGAL CHARGES
C. ADDITIONAL CHARGES
 D. FIXED CHARGES
D 208. Shall mean net income after deducting operating and
maintenance expenses, taxes other than income taxes,
depreciation and depletion.
A. NET EARNINGS
B. NET EARNINGS FOR ADDITONAL CHARGES
C. NET EARNINGS AVAILABLE FOR LEGAL CHARGES
D. NET EARNINGS AVAILABLE FOR FIXED CHARGES
B 209. the total investment of a domestic non-life insurance
company in any registered enterprise shall not exceed
____________ of the net worth of said insurance company
as shown by its aforesaid financial statement unless
previously authorized by the Commissioner.
A. TEN PERCENT
B. TWENTY PERCENT
C. THIRTY PERCENT
D. FIFTY PERCENT
C 210. The following, except one, are issued by the trustees or
receivers of any institution created or existing under
the laws of the Philippines which, or the assets of
which, are being administered under the direction of any
court having jurisdiction.
A. NOTES
B. OBLIGATIONS
C. GUARANTEE
D. CERTIFICATE
A 211. An insurance company ______ invest in equities of other
financial institutions.
A. MAY
B. MAY NOT
C. CAN
D. CAN NOT
D 212. Any life insurance company may do the following, except:
A. ACQUIRE LAND
B. ACQUIRE REAL PROPERTY
C. CONSTRUCT HOUSING PROJECT
D. ACQUIRE INVESTMENTS THROUGH LOANS
D 213. Every ________ insurance company shall, to the extent of
an amount equal in value to twenty-five per cent (25%)
of the minimum net worth required.
A. INTERNATIONAL
B. LOCAL
C. NATIONAL
D. DOMESTIC
D 214. any non-life insurance company may invest any portion of
its funds representing
earned surplus in any of the investments described in
 Sections 204, 206 and 207, or in any securities issued
by a registered enterprise mentioned in the preceding
sections: Provided, That no investment in stocks or
bonds of any single entity shall in the aggregate,
exceed twenty per cent (20%) of the net worth of the
insurance company as shown in its latest financial
statement approved by the:
A. LAW
B. COURT
C. GEVERNMENT
D. COMMISSIONER
C 215. After satisfying the minimum capital investment required
in Section 209, any life insurance company may ________
its legal policy reserve.
A. KEEP
B. PRESERVE
C. INVEST
D. SELL
C 216. Any investment made in violation of the applicable
provisions of this title shall be considered:
A. ADMISBIBLE ASSET
B. ADMITTED ASSETS
C. NON-ADMITTED ASSETS
D. FORFEITED ASSET
C 217. All bonds or other instruments of indebtedness having a
fixed term and rate of interest and held by any life
insurance company authorized to do business in this
country, if amply secured and if not in default as to
principal or interest, shall be valued
based on their:
A. FAIR VALUE
B. HISTORICAL COST
C. AMORTIZED COST
D. MARKET VALUE
D 218. Which of the following shall have the power to determine
the eligibility of any such investments for valuation on
the basis of amortization, and may by regulation
prescribe or limit the classes of securities so eligible
for amortization?
A. LAW
B. COURT
C. GEVERNMENT
D. COMMISSIONER
A 219. All bonds or other instruments of indebtedness which in
the judgment of the Commissioner are not amply:
A. SECURED
B. COVERED
 C. RESERVED
D. VALID
D 220. Every life insurance company, conducted on the mutual
plan or a plan in which policyholders are by the terms
of their policies entitled to share in the profits or
surplus shall __________ ascertain the amount of the
surplus to which all such policies as a separate class
are entitled.
A. PERIODICALLY
B. MONTHLY
C. QUARTERLY
D. ANNUALY
A 221. Every insurance company, other than _______, shall
maintain a reserve for unearned premiums on its policies
in force.
A. LIFE
B. HEALTH
C. PROPERTY
D. CASUALTY
C 222. Unearned premiums on insurances’ policies in force shall
be charged as a/n:
A. ASSET
B. INCOME
C. LIABILITY
D. LOSS
C 223. In addition to its liabilities and reserves on contracts
of insurance issued by it, every insurance company shall
be __________ with the estimated amount of all of its
other liabilities, including taxes, expenses and other
obligations due or accrued at the date of statement, and
including any special reserves required by the
Commissioner pursuant to the provisions of this Code.
A. LIABLE
B. RESPONSIBLE
C. CHARGED
D. PAID
D 224. No insurance company other than life, whether foreign or
domestic, shall retain any risk on any one subject of
insurance in an amount exceeding twenty per cent of its:
A. TOTALL ASSETS
B. EQUITY
C. STOCKS
D. NET WORTH
C 225. Shall include all properties or risks insured by the
same insurer that customarily are considered
by non-life company underwriters to be subject to loss
or damage from the same occurrence of any hazard insured
 against.
A. CONTRACT OF INSURANCE
B. DOMESTIC INSURANCE
C. SUBJECT OF INSURANCE
D. INSURANCE POLICY
D 226. Which of the following may issue regulations providing
for a maximum limit on the overall retained risks of
insurers to serve as a catastrophe cover requirement for
the same?
A. LAW
B. COURT
C. GOVERNMENT
D. COMMISSIONER
C 227. Reinsurance ceded as ___________ under the succeeding
title shall be deducted in determining the risk
retained.
A. APPROVED
B. SUSTAINED
C. AUTHORIZED
D. VALID
D 228. As to ______________, deduction shall also be made of
the amount assumed by any other company authorized to
transact surety business and the value of any security
mortgaged, pledged, or held subject to the surety’s
control and for the surety’s protection.
A. LIFE INSURANCE
B. SURETYSHIP
C. INSURANCE RISK
D. SURETY RISK
C 229. Any policy or contract on either a group or on an
individual basis issued by an insurance company
providing for benefits or other contractual payments or
values thereunder to vary so as to reflect investment
results of any segregated portfolio of investments or of
a designated separate account in which amounts received
in connection with such contracts shall have been placed
and accounted for separately and apart from other
investments and accounts.
A. VARIABLE INSURANCE
B. FIXED INSURANCE
C. VARIABLE CONTRACT
D. CONSTANT CONTRACT
A 230. In determining the qualifications of a company
requesting authority to issue, deliver, sell or use
variable contracts, the Commissioner shall always
consider the following, except:
A. The character, responsibility and fitness of the
 officers and employees of the company
B. The history, financial and general condition of the
company
C. The law and regulation under which the company is
authorized in the state of domicile to issue such
contracts
D. The character, responsibility and fitness of the
officers and directors of the company
231.
232.
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295.
296.
297.
298.
299.
C 300. Sales, purchases, exchanges, loans or extensions of
credit, or investments, involving more than one-half of
one percent (½%) but less than of the
insurer’s admitted assets as of the thirty-first day of
December next preceding;
A. THREE PERCENT
B. TEN PERCENT
C. FIVE PERCENT
D. SEVEN PERCENT
A 301. The Commissioner, in reviewing transactions pursuant to
Sections 299 and 300, shall consider whether the
transactions comply with the standard set forth in
Section 298 and whether they may adversely affect the
interests of?
A. POLICYHOLDERS
 B. POLICY INSURANCE
C. POLICY OWNER
D. POLICY MAKER
B 302. The Commissioner shall disapprove the acquisition of
control of a domestic insurer if he determines, after
notice and an opportunity to be heard, that such action
is reasonably necessary to protect the interest of the
people of this country. Which of the following shall be
the only factors to be considered by him in reaching the
foregoing determination:
A. THE CONTROLLING PERSON OR ANY OF ITS OFFICERS OR
DIRECTORS HAVE DEMONSTRATED UNTRUSTWORTHINESS.
B. THE FINANCIAL CONDITION OF THE ACQUIRING PERSON AND
THE INSURER.
C. WITH THE PRIOR WRITTEN APPROVAL OF THE
COMMISSIONER.
D. RENDERING OF SERVICES ON A REGULAR OR SYSTEMATIC
BASIS
C 303. Nothing herein shall preclude an authorized insurer from
having or sharing a common management or or
joint use of personnel, property or services with one or
more other persons under arrangements meeting the
standards of what section 298.
A. COMPANY
B. CORPORATION
C. COOPERATIVE
D. PARTNERS
A 304. To the extent that any information or material is set
forth in forms or other matter on file with any or
in a registration form filed with the Commissioner by
another person within the same holding company system.
A. GOVERNMENT AGENCY
B. GOVERNMENT POLICY
C. GOVERNMENT
D. GOVERNMENT RULES
B 305. In addition to any other penalty provided by law, the
Commissioner may, upon the of any person within
a holding company system to comply with this title or
any regulation or order promulgated.
A. WILLINGLY FAIL
B. WILLINGLY FAILURE
C. WILLINGLY DENIED
D. FAILURE
C 306. Direct that, in addition to any other penalty provided
by law, such person forfeit to the people of this
country a sum not less than Five thousand pesos
(P5,000.00) for a first violation and Twenty-five
 thousand pesos (P25,000.00) for any subsequent
violation. An additional sum not less than Twenty-five
thousand pesos (P25,000.00) shall be imposed for each
month during which any such violation shall continue.
A. MORE THAN FIVE THOUSAND PESOS (P5,000.00) FOR A
FIRST VIOLATION AND TWENTY-FIVE THOUSAND PESOS
(P25,000.00)
B. NOT LESS THAN FIVE THOUSAND PESOS (P10,000.00) FOR
A FIRST VIOLATION AND TWENTY-FIVE THOUSAND PESOS
(P30,000.00)
C. NOT LESS THAN FIVE THOUSAND PESOS (P5,000.00) FOR A
FIRST VIOLATION AND TWENTY-FIVE THOUSAND PESOS
(P25,000.00)
D. NOT LESS THAN FIVE THOUSAND PESOS (P5,000.00) FOR A
FIRST VIOLATION AND TWENTY-FIVE THOUSAND PESOS
(P55,000.00)
c 307. The Commissioner may require the submission of such
information as he deems necessary to determine whether
any acquisition or retention of control complies with
this title and may require, as a condition of approval
of such acquisition or retention of control, that all or
any portion of such information be disclosed to the
insurer’s?
A. PARTNERS
B. INVESTORS
C. STOCKHOLDERS
D. INSURERS
B 308. It is an independent contractor and not an employee of
the company represented. ‘Insurance agent’ includes an
agency leader, agency manager, or their equivalent.
A. COMISSIONER
B. INSURANCE AGENT
C. INSURANCE COMMISSION
D. AGENT
D 309. Since the insurance industry is with imbued to ,
the insurance companies upon approval of the
Commissioner may exercise wide latitude in supervising
the activities of their insurance agents to ensure the
protection of the insuring public.
A. PUBLIC INSURANCE
B. PUBLIC LIABILITY
C. PUBLIC
D. PUBLIC INTERST
D 310. Every applicant for an insurance broker’s license shall
file with the application and shall thereafter maintain
in force while so licensed, a bond in favour of the
people of the Republic of the Philippines executed by a
 company authorized to become surety upon official
recognizances, stipulations, bonds and undertakings. The
bond shall be in such amount as may be fixed by the
Commissioner, but in no case and shall be
conditioned upon full accounting and due payment to the
person entitled thereto of funds coming into the
broker’s possession through insurance transactions under
license.
A. LESS THAN FOUR HUNDRED THOUSAND PESOS (P400,000.00)
B. MORE THAN FOUR HUNDRED THOUSAND PESOS (P400,000.00)
C. FIVE HUNDRED THOUSAND PESOS (P500,000.00)
D. LESS THAN FIVE HUNDRED THOUSAND PESOS (P500,000.00)
311. The bond shall remain in force until released by the
Commissioner, or until cancelled by the surety. Without
prejudice to any liability previously incurred
thereunder, the surety may cancel the bond on advance
written notice to both the broker and the Commissioner.
A. THIRTY (30) DAYS
B. TWENTY (20) DAYS
C. TEN (10) DAYS
D. THREE (3) DAYS
B 312. An application for the issuance or renewal of a license
to act as an insurance agent or insurance broker may be?
A. ACCEPTED
B. REFUSED
C. DENIED
D. APPROVED
D 313. If license is already issued or renewed, shall be
suspended or revoked if the Commissioner finds that the
applicant for, or holder of, such license except one:
A. HAS WILLFULLY VIOLATED ANY PROVISION OF THIS CODE.
B. HAS INTENTIONALLY MADE A MATERIAL MISSTATEMENT IN
THE APPLICATION TO QUALIFY FOR SUCH LICENSE.
C. HAS BEEN GUILTY OF FRAUDULENT OR DISHONEST
PRACTICES.
D. ADOPTED BY A VOTE OF A MAJORITY OF THE DIRECTORS.
A 314. The premium, or any portion thereof, which an insurance
agent or insurance broker collects from an insured and
which is to be paid to an insurance company because of
the assumption of liability through the issuance of
policies or contracts of insurance, shall be held by the
agent or broker in a fiduciary capacity and shall not be
misappropriated or converted to his own use or illegally
withheld by?
A. AGENT OR BROKER
B. TRADER
C. INVESTOR
 D. BUYER
A 315. In order to ensure faithful performance by the insurance
agent or insurance broker of these fiduciary
responsibilities, the Insurance Commissioner shall
prescribe the terms and conditions on such
matters in the standard agency or brokers agreement
between the agents and/or the broker with the insurance
companies.
A. MINIMUM
B. MAXIMUM
C. POLICY
D. MINIMAL
B 316. No such license shall be issued unless and until the
Commissioner is?
A. UNSATISFIED
B. SATISFIED
C. PLEASED
D. GRATIFIDE
B 317. Except as otherwise provided by law or treaty, it shall
be unlawful for any person, , association or
corporation in the Philippines.
A. INVESTOR
B. PARTNERSHIP
C. COMPANY
D. COOPERATIVE
A 318. Section 318 shall be deemed guilty of a penal offense,
and upon conviction thereof, shall for each such offense
be punished by a fine or imprisonment of six
(6) months, or both, at the discretion of the court:
Provided, That the provisions of this section shall not
apply to reinsurance.
A. TWO HUNDRED FIFTY THOUSAND PESOS (P250,000.00)
B. THREE HUNDRED FIFTY THOUSAND PESOS (p300, OOO.00)
C. TWO HUNDRED FIFTY-FIVE PESOS (p255,000.00)
D. FOUR HUNDRED FIFTY THOUSAND PESOS (p400,000.00)
A 319. It is the one who is for compensation, not being a duly
authorized agent, employee or officer of an insurer in
which any reinsurance is effected, acts or aids in any
manner in negotiating contracts of reinsurance, or
placing risks of effecting reinsurance, for any
insurance company authorized to do business in the
Philippines.
A. REINSURANCE BROKER
B. BUSINESS BROKER
C. CUSTOMS BROKER
D. BROKER
B 320. No person shall act as resident agent, as hereinafter
 defined, unless he is as such with the
Commissioner.
A. AUTHOURIZED
B. REGISTERED
C. ACCEPTED
D. NOTARIZED
A 321. No person shall act as resident agent, as hereinafter
defined, unless he is registered as such with the?
A. COMMISSIONER
B. INVESTOR
C. STOCKHOLDER
D. PARTNERS
A 322. It is the one duly appointed by a foreign insurer or
broker not authorized to do business in the Philippines
to receive in its behalf notices, summons and legal
processes in connection with actions or other legal
proceedings against such foreign insurer or broker.
A. RESIDENT AGENT
B. SERVANT
C. REPRESENTATIVE
D. COMMISSIONER
B 323. The application for a certificate of registration as
resident agent filed with the Commissioner must be
accompanied with a copy of the power of attorney, duly
notarized and authenticated by the Philippine Consul in
the place where such foreign insurer or broker is?
A. RESIDENCY
B. DOMICILED
C. LODGER
D. QUARTER
A 324. It shall be the of such resident agent to notify
immediately the Commissioner of any change of his office
address.
A. DUTY
B. RESPONSIBLE
C. OBLIGATION
D. HONOR
A 325. . A certificate of registration issued to a resident
agent shall expire on the following its
issuance unless it is renewed.
A. THIRTY-FIRST DAY OF DECEMBER OF THE THIRD YEAR
B. TWELVE DAY OF DECEMBER OF THE THIRD YEAR
C. THIRTY-FIRST DAY OF DECEMBER OF THE SECOND YEAR
D. THIRTY-FIRST DAY OF NOVEMBER ON THE THIRD YEAR
D 326. No person shall act, and no company shall employ any
person, as non-life company underwriter, whose duty and
responsibility it shall be to select, evaluate and
 accept risks for, and to determine the terms and
conditions, including those pertaining to amounts of
retentions, under which such risks are to be accepted by
the company, unless such underwriter is?
A. VALUABLE
B. IGNORED
C. ACCEPTED
D. REGISTERED
A 327. "The Commissioner may, after due notice and hearing,
recall or cancel the certificate of registration issued
to a resident agent for violation of any existing ,
rule or regulation, or any provision of this Code.
A. LAW
B. CONSENT
C. OBLIGATION
D. CONTRACT
D 328. It shall be the responsibility of the on the
particular line of risk involved to see to it that the
said registers are well maintained and kept, and that
all entries therein are properly and correctly recorded.
Such registers shall be open to inspection and
examination of duly authorized representatives of the
Commissioner at all times during business hours.
A. SCRIPWRITER
B. LAWYER
C. GOVERNMENT
D. UNDERWRITER
C 329. No person shall be registered with the Commissioner,
unless such person shall be at least of age on
the date.
A. EIGTHEEN (18) YEARS OF AGE
B. TWENTY (20) YEARS OF AGE
C. TWENTY-ONE (21) YEARS OF AGE
D. TWENTY-FIVE (25) YEARS OF AGE
D 330. Such examination shall not be required of any person who
has served as non-life company underwriter for a period
of at least?
A. THREE (3) YEARS
B. FOUR (4) YEARS
C. SEVEN (7) YEARS
D. FIVE (5) YEARS
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