He is the person whose loss on the occasion for the payment of the insurance proceeds by the insurer. He must have the capacity to enter into a contract and he must mot be a public enemy.

He is the person who assumes risk of loss and undertakes a consideration to indemnify the insured upon the happening of a designated peril.

The risk of economic loss is distributed among a large group of people bearing the same risk.

The law presumes that the insurer considered the personal qualification of the insured in approving the insurance application. The insured cannot assign, before the happening of the loss, his rights under a property policy without the consent of the insurer.

Which among the following is not a life insurance contract?

Which among the following is not a non-life insurance contract?

The contract of insurance is one of perfect good faith, not for the insured alone, but equally so for the insurer.

Who among the parties is considered “public enemy” and, therefore, may not be insured?

He is the third person designated by the insured to receive the proceeds.

It is an act strengthening the insurance industry, also known as the Presidential Decree no. 612.

Marine insurance against damages to:

Insurance for property is also known as:

A single insurance contract that provides multiple coverage for many individuals. Group insurances can be used for the purpose of life or health insurance for the employees of one employer.

It is a form of life insurance under which the premiums are payable either monthly or more often, if the face amount of insurance provided in any policy is not more than five hundred times that of the current statutory minimum daily wage in the City of Manila, and if the words “-“ policy are printed upon the policy as part of the descriptive matter.

S1: There are 2 classes of Insurance: Life & Non-life insurance S2: Life Insurance includes fire, marine and individual life insurance.

S1: A subscriber of insurance policy may also be known as a policyholder. S2: Suretyship is a contract where a person binds himself solidarily to the creditor to fulfill the obligation of the debtor in case the latter should fail to do so.

S1: The principle of a contract of indemnity, also known as uberrimae fidei, means that the insurer has a duty to be truthful about the terms of the policy. S2: All insurance companies are required to offer the same types of policies.

S1: Industrial life insurance provides coverage for losses resulting from accidents or unforeseen events. S2: Fire Insurance is an insurance against damages or loss to: fire, lightning, windstorm, tornado, earthquake and other allied risks.

S1: AIA Philippines and Cardi MRI Insurance Agency are examples of non-life insurance, specifically under casualty. S2: Pru Life UK and Sun LifeAssure are examples of life insurance, specifically under individual life.

What is insurable interest?

Which law governs insurable interest in the Philippines?

When must insurable interest exist in life insurance?

In property insurance, when must insurable interest exist?

Which of the following is NOT an example of insurable interest in property?

What happens if there's no insurable interest in an insurance policy?

Who can be a beneficiary in life insurance taken out by the insured himself?

A mortgagee has insurable interest up to what extent?

What clause allows a mortgagee to receive proceeds from insurance?

What type of interest is not needed in life insurance by the assignee?

Liability insurance covers what kind of interest?

What generally suspends a property insurance policy?

What happens if there’s a prohibited alienation of insured property?

What perfects an insurance contract?

What is the general rule regarding premium payment?

Which is not an exception to the premium rule?

Concealment in insurance means what?

A false representation entitles the injured party to do what?

What is required for a warranty to be enforceable?

Who may be subrogated after paying a property claim?

In subrogation, what rights does the insurer have?

Subrogation does not apply to which of the following?

What is the prescriptive period if no stipulation is made?

When does the cause of action accrue in insurance claims?

In what situation is notice not required to be given?

If a representation is false and material, what happens?

A breach of an immaterial warranty does what?

Who must consent in the assignment of property insurance?

Statement 1: The term "credit" under the law includes rent-to-own and installment plans. Statement 2: Credit is limited to cash loans and does not include property leases or sales payable in installments.

The disclosures under the Truth in Lending Act are required by law to be made:

Statement 1: The Monetary Board of the Bangko Sentral ng Pilipinas is the governing board referred to in the law. Statement 2: The term “person” under the law excludes government agencies.

According to the Truth in Lending Act, prior to the consummation of a transaction, the creditor shall furnish all of the following information, except:

Statement 1: Creditors are not obligated to disclose finance charges if the borrower is a corporation. Statement 2: A “creditor” is any person extending credit that involves a finance charge.

Statement 1: Finance charges include interest and fees incidental to the extension of credit. Statement 2: Discounts given by a seller in a cash sale are considered finance charges.

Aside from required information to be furnished to persons whom credit is extended, what additional information is required by BSP Circular No 755 s 2012?

Statement 1: Credit transactions covered by the law must involve some form of finance charge. Statement 2: Credit transactions with no finance charge are excluded from the coverage of the law.

All registered CGEs shall charge interest based on:

Statement 1: Under BSP Circular No. 755, the purpose of transparent pricing is to regulate how high interest rates can go. Statement 2: Transparent pricing enables borrowers to compare loan products better and fosters market competition.

The “Truth in Lending Act” thereby seeks to protect debtors by permitting them to fully appreciate the true cost of their loan, to enable them to give full consent to the contract, and to properly evaluate their options in arriving at business decisions.

Statement 1: Creditors must disclose the finance charge in pesos and centavos. Statement 2: The disclosure statement must be given after the loan is approved but before the borrower receives the funds.

Anna purchased a washing machine under an installment plan from a registered creditor. Before signing the contract, she was not provided with any disclosure statement showing the finance charge or effective interest rate. What is the consequence of the creditor’s failure to disclose required information under the Truth in Lending Act?

Statement 1: The net proceeds of the loan must be included in the disclosure statement under BSP Circular 755. Statement 2: Borrowers are not entitled to a copy of the disclosure statement once the loan is consummated.

XYZ Lending Corp. granted a loan and included in the loan documents a clear breakdown of the total amount to be financed, net proceeds, and finance charges. However, it did not indicate the annual percentage rate. Did XYZ Lending Corp. fully comply with the disclosure requirements?

Statement 1: The effective interest rate (EIR) may be quoted monthly or annually as long as it is disclosed alongside the contractual rate. Statement 2: There is no obligation to show the EIR if the loan does not involve monthly amortization.

Ben borrowed ₱50,000 from a micro-lending institution. The lender provided a disclosure statement after the loan was signed and disbursed. Is this a violation under the Truth in Lending Act?

Statement 1: Willful failure to comply with disclosure requirements may result in imprisonment. Statement 2: The penalty for non-disclosure includes a fine up to P10,000 even without a court case.

A creditor imposes a lease agreement with a finance charge, and the total cost was not explained to the lessee. Which type of transaction is covered by the Truth in Lending Act?

Statement 1: The Philippine Government is exempt from penalties under the Truth in Lending Act. Statement 2: Civil actions to recover penalties must be initiated within five years from the violation.

Carlo filed a civil suit after he was charged undisclosed finance charges in a credit transaction. He won the case. What additional benefit is Carlo entitled to under the Truth in Lending Act?

Statement 1: CGEs include businesses registered with either SEC or DTI that have credit-granting activities. Statement 2: Banks and financing companies are not considered CGEs.

Lending Firm ABC failed to disclose the required finance charge in a loan agreement. It was proven that this failure was willful. What criminal penalty could be imposed?

Statement 1: Conditional sales contracts and lease-to-own agreements are among the covered transactions under the Truth in Lending Act. Statement 2: The law applies only to loans offered by banks and not to private companies.

Maria enters into a "rent-to-own" furniture agreement. The company refuses to provide her with a disclosure statement, saying it’s not a loan. Is the company correct in excluding itself from the law?

Statement 1: Disclosure of finance charges is optional in credit contracts below P10,000. Statement 2: The borrower may demand a copy of the disclosure statement, and the creditor must provide it.

Under BSP Circular No. 755, a credit-granting entity must provide the borrower a disclosure statement before consummating the transaction. Which of the following is NOT required in the disclosure statement?

Statement 1: A final judgment in a criminal case under this Act serves as prima facie evidence in civil actions. Statement 2: The creditor is never liable for attorney's fees in cases involving non-disclosure.

The simple annual interest charged on Derek’s loan is 3%. If his outstanding balance is Php1,500, how much shall he be entitled to if the creditor had failed to disclose any information in violation of the Truth in Lending Act?

When the borrower is not clearly informed of the disclosure statements prior to the consummation of the availment or drawdown, the lender will have no right to collect upon such charge or increases thereof, even if stipulated in the notes.

In the Truth in Lending Act, this includes interest, fees, service charges, discounts, and such other charges incident to the extension of credit as the Board may be regulation prescribe.

In the Truth in Lending Act, this means any entity engaged in the business of extending credit.

Not disclosing the true finance charges in connection with the extension of credit is not a form of deception.

In case of trade transactions, it is the amount of money which would constitute full payment upon delivery of property (except money) or service purchased at the bank’s place of business.

In the case of financial transactions, this represents the amount of money received by the debtor upon consummation of the credit transaction, net of finance charges collected at the time the credit is extended (if any).

It represents the value of an asset agreed upon by the bank and debtor, given at the time of the transaction in partial payment for the property or service purchased.

It is the uniform percentage which represents the ratio between the finance charge and the amount to be financed.

It consists of the cash price plus non-finance charges less the amount of the down payment and value of the trade-in.

It corresponds to the amounts advanced by the bank for items normally associated with the ownership of the property or of the availment of the service purchased which are not incident to the extension of credit.

It is the rate that exactly discounts estimated future cash flows through the life of the loan to the net amount of the loan proceeds.

Statement 1: The debtor and the lending institutions do not deal on an equal footing so the Act was intended to protect the public from disclosed charges on their loan obligations. Statement 2: The violation of the Truth in Lending Act gives rise to both criminal and civil liabilities.

It is an act providing for the recognition and use of electronic commercial and non-commercial transactions and documents, penalties for unlawful use thereof, and for other purposes.

It refers to information generated, sent, received or stored by electronic, optical or similar means.

The Electronic Commerce Act shall apply to any kind of data message and electronic document used in the context of what kind of activities to include domestic and international dealings, transactions, arrangements, agreements contracts and exchanges and storage of information?

An electronic signature on the electronic document shall be_____ to the signature of a person on a written document if that signature is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document.

It refers to a person who in behalf of another person and with respect to a particular electronic document sends, receives and/or stores, provides other services in respect of that electronic data message or electronic document.

Under what circumstance is an electronic signature on an electronic document considered equivalent to a handwritten signature, except when:

Statement 1: A text message is admissible as evidence in court. Statement 2: Electronic signatures are only limited to scanned signatures.

The matters referred to in Section 12, on admissibility and Section 9, on the presumption of_________, may be presumed to have been established by an affidavit given to the best of the deponent's knowledge subject to the rights of parties in interest as defined in the following section.

As between the originator and the addressee, an electronic data message or electronic document is deemed to be that of the originator if it was sent: Statement I: by an information system programmed by, or on behalf of the intermediary to operate automatically. Statement II: by a person who had the authority to act on behalf of the agent with respect to that electronic data message or electronic document;

Statement 1: In any proceedings involving an electronic signature, it shall be presumed that the electronic signature is the signature of the person to whom it correlates. Statement 2: Information shall be denied legal effect, validity or enforceability solely on the grounds that it is in the data message purporting to give rise to such legal effect, or that it is merely referred to in that electronic data message.

Who is entitled to regard the electronic data message or electronic document received as that which the originator intended to send?

In relation to a body corporate, this means the place where it is incorporated or otherwise legally constituted.

An electronic data message or electronic document is that of the originator if it was sent by the?

Electronic transactions made through networking among banks, or linkages thereof with other entities or networks, and vice versa, shall be deemed ____ upon the actual dispensing of cash or the debit of one account and the corresponding credit to another.

Subject to applicable laws and /or rules and guidelines promulgated by the_________with other appropriate government agencies, parties to any electronic transaction shall be free to determine the type of level of electronic data message and electronic document security needed, and to select and use or implement appropriate technological methods that suit their need.