1. Any minor of the age of eighteen years or more may contract insurance for the following except: a.

Life b. Property c. Health d. Accident

2. The following are requisites of a contract of insurance except: a. Meeting of the minds of the parties b. Peril insured against c. A promise to pay or indemnity d. Pecuniary interest

3. Every person has an insurable interest in the life and health of the following except: a. Himself b. Creditor c. Spouse d. Children

4. The following have an insurable interest in each others life since under the provisions of the family code they are obliged to support each other except: a. b. c. d. The spouses Parents Illegitimate children Illegitimate brothers and sisters

5. The limitations in the appointment of beneficiary, in relation to Article 739 of the Civil Code, the following donations are void except: a. b. c. Those made between illegitimate brothers and sisters Those made between persons who were guilty of adultery or concubinage at the time of the time of the donation Those made between persons found guilty of the same criminal offense, in consideration thereof

d.

Those made to a public officer or his wife, descendants and ascendants, by reason of his office

6. In Section 14, an insurable interest in property may consist in except: a. b. c. An existing interest A hope and expectancy against a contingency An inchoate interest founded on an existing interest

d. An expectancy coupled with an existing interest

7. A change of interest in any part of a thing insured unaccompanied by a corresponding change of interest in the insurance suspends the insurance to an equivalent extent except in cases, save: a. Life b. Accident c. Property d. Health

8. In relation to Section 26, the requisites of concealment are, save: a. A party knows the fact which he neglects to communicate or disclose to the other b. c. d. The fact concealed is material to the risk Such party makes a warranty of the fact concealed The other party has not the means of ascertaining the facts concealed

9. In relation to Section 28, it is the duty of each party to a contract of insurance to communicate in good faith all facts within his knowledge only when except: a. The facts are available but need not be stipulated b. As to which the party with the duty to communicate makes no warranty c. They are material to the contracts d. The other has not the means of ascertaining the said facts

10.A party to a contract is bound to communicate of the matters following , except in answer to the inquiries of the other, save: a. Those which the other knows.

b. Those which the other ought to know. c. Those which are not stipulated in the contract. d. Those which relate to a risk excepted from the policy.

11.A misrepresentation in insurance is a statement, save: a. As a fact of something which is not available at the perfection of a contract. b. As a fact of something which is untrue. c. Which the insured states with knowledge that it is untrue with an intent to deceive. d. Which the insured states as true without knowing it to be true.

12.Which of the the following statements about a representation is not true: a. A representation must be oral or written. B. A representation must be made at the time of the issuance of the policy. c. The language of a representation is to be interpreted by the same rules as the language of contracts in general. d. A representation as to the future is to be deemed to be a promise.

13.A promissory representation is, except: a. A promise to be fulfilled after the contract has come into existence. b. A statement concerning what is to happen during the existence of the insurance. c. A substantially condition of a warranty. d. Subject to a suspensive or resolutory condition.

14.A contract of insurance may be rescinded on the ground of, except: a. Concealment b. False representation c. Bad faith d. Breach of warranty

15.Requisites for incontestability of life policies, save: a. The policy is a life insurance policy.

b. It is payable on the death of the insured. c. The cause of death of the insured is an excepted risk. d. It has been in force during the lifetime of the insured for at least two years.

16.The insurer may still contest the policy on any of the following grounds, except: a.That the action was not brought within the time specified. b.That the premiums has not been paid. c.That the fraud is of an incidental type. d.That the person taking the insurance lacked insurable interest as required by law.

17.The policy of insurance must specify, except: a. The parties between whom the contract is made. b. The amount to be insured c. The premium d. The third party beneficiary

18.The kinds of insurable risks are, save: a. Personal risks b. Disability risks c. Property risks d. Liability risks

19.The kinds of policies are the following, which is not? a. Limited b. Open c. Valued d. Running

20.No policy of insurance other than life shall be cancelled by the insurer except upon prior notice thereof to the insured and no notice of cancellation shall be effective unless it is based on the occurrence, after the effective date of the policy, of one or more of the following, except: a. Conviction of a crime arising out of acts increasing the hazard insured against. b. Discovery of mistake or excusable negligence. c. Nonpayment of premium. d. Discovery of wilful or reckless acts or omissions increasing the hazard insured against.

21.Form and sufficiency of notice of cancellation. The conditions under which the right may be exercised are, which is not? a. There must be prior notice of cancellation to the insured. b. The notice must be based on the occurrence before or after the date of the effective date of the policy. c. It must be in writing, mailed or delivered to the named insured at the address shown in the policy. d. It must state which grounds set forth is relied upon.

22.The kinds of warranties are, except: a. Conditional warranty b. Express warranty c. Implied warranty d. Affirmative warranty

23.A warranty is, save: a. considered parts of the contract. b. always written on the face of the policy. c. substantial truth only is required. d. is presumed material.

24.Express warranty contained, which is not?

a.form part of the contract b.in another instrument signed by the insured c.reference to in another policy alone d. none of the above

25.When breach of warranty does not avoid policy, save: a. When loss occurs before time for performance b. When performance becomes unlawful c. When performance becomes impossible

d. None of the above

26.The insured has the right to recover premiums already paid or a portion thereof in the following cases except:

a. When the contract is voidable because of fraud b. When the insurer incurred any liability under the policy because of default of the insured c. When there is over insurance d. When rescission is granted due to the insurers breach of contract

27.A person ensured is entitled to a return of premium as follows, save:

a. Where the insurance is not for a definite period b. Where a short period rate has been agreed upon c. Where the policy is a life insurance policy d. Where part of the thing insured has been exposed to any of the perils insured against.

28. The statement of loss is a formal requirement and intended to the following, except;

a. To give the insurer information by which he may determinethe extent of his liability

b. To afford him a means of detecting any fraud that may have been practiced upon him c. To apprise the insured with the occurrence of the loss d. To operate as a check upon extravagant claim

29.There is no double insurance unless the following requisites exist, except:

a. The insurance company is the same b. Two or more insurers insuring separately c. The subject matter is the same d. The interest insured is the same

30.The following are policies of inland marine insurance, except:

a. Fixed transportation property b. Property in transit c. Freightage d. Bailee liability

31.The following are called Perils of the Ship, except:

a. From the natural and inevitable action of the sea b. From the ordinary wear and tear of the ship c. From the negligent failure of the ship owner to provide the vessel with proper equipment d. None of the above

32.When seaworthiness is complied with, there is no implied warranty that the vessel will remain in seaworthy condition throughout the life of the policy, the exceptions to the rule are the following, except:

a. In case of time policy

b. In case of cargo policy c. In case of voyage policy d. In case of stowage policy

33.A deviation is proper when, save:

a. When caused by circumstances the master cannot control b. When in good faith and upon reasonable in its necessity to avoid a peril c. When made in good faith, for the purpose of salvaging another ship d. None of the above

34.Freightage may be derived from the following, save;

a. The chartering of the ship b. Its employment for the carriage of his own goods c. Its employment for the carriage of the goods of others d. None of the above

35.The requisites for a valid abandonment in marine insurance are, except:

a. There must be an actual relinquishment by the person insured of his interest in the thing insured b. There must be constructive total loss c. The abandonment must be partial or conditional d. It must be made within a reasonable time after receipt of reliable information of the loss

KEY: 1. B 2. D 3. B 4. D

5. A 6. B 7. C 8. C 9. A 10.C 11.A 12.B 13.D 14.C 15.C 16.C 17.D 18.B 19.A 20.B 21.B 22.A 23.C 24.C 25.D 26.B 27.D 28.C 29.A 30.C 31.D 32.D 33.C 34.D 35.C