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Question VII

2008 Bar · Mercantile Law · 1 sub-question

Terrazas de Patio Verde, a condominium building, has a value of P50 Million. The owner insured the building against fire with three (3) insurance companies for the following amounts: Northern Insurance Corp. - P20 Million Southern Insurance Corp. - P30 Million Eastern Insurance Corp. - P50 Million Is the owner's taking of insurance for the building with three (3) insurers valid? Discuss. (3%) The building was totally razed by fire. If the owner decides to claim from Eastern Insurance Corp. only P50 Million, will the claim prosper? Explain. (2%)

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