Concealment

1. Mr. X is experiencing frequent urination and other

symptoms of enlarged prostate. He knows the symptoms
because his father died of prostate cancer. Afraid that he
might have cancer, he immediately insured his life and
make his wife as beneficiary. After a year, he died of
prostate cancer. The insurer denied the claim of the wife
due to misrepresentation. Is the insurer correct?

2. Mr. X was hospitalized when he was young due to a bike

accident. When he took a health insurance policy, he did
not divulge that fact. The insurer sought to rescind the
policy due to misrepresentation. Is the insurer correct?

3. Mr. X was diagnosed of cancer. However, he failed to

indicate it in the application form when he took a life
insurance policy. According to him, it is unintentional. Can
the insurer rescind the contract?
Read: THELMA VDA. DE CANILANG, petitioner, G.R. No. 92492
June 17, 1993
4. Mr. X took a life insurance policy. In the application form,
he did not state that his grandfather died of cancer because
during that time, he does not know. Can the insurer rescind
the contract?

5. In the insurance policy, it was indicated that Mr. X, the

insured, declared that none of his ascendants and
descendants suffered from cancer. In the application form
he did not state that his grandfather actually died of cancer
because he has no way of ascertaining the fact. Could the
insurer rescind the contract?
Misrepresentation
1. Mr. X falsely told the insurer that he has not been
hospitalized and he would not work in a hazardous
condition. Is there misrepresentation?
 2. When asked if he has been any taken medication, he
answered, he did not. However, it was discovered that he
was actually taking paracetamol when he signed the policy.
Is there misrepresentation?

3. In taking a fire insurance policy, Mr. X told the insurer that

his house is being used as a stockroom. Mr. X promised
orally that in 30 days he will used as a residence. After 30
days, Mr. X did not fulfil his promise, instead he set it on
fire, and burned down the house. The insurer sought to
invalidate the policy for misrepresentation. Is he correct?

4. Mr. X made representation that he is using the house

sought to be insured as his residence but actually is being
used as a warehouse. Because of this representation, the
insurer was induced to insure the house of Mr. X. Thirty
days later, when they were about to sign the policy, Mr. X
transferred to the warehouse and use it as a residence.
When the house was gutted by fire, the insurer discovered
that it was being used as warehouse. Could the insurer
invalidate the policy?

5. Mr. X sought to take a health insurance policy. When asked

by the insurer if he is taking any maintenance medicine for
hypertension, he answered, “No”, although a doctor had
prescribed him one. He answered No because he is not
taking it. When Mr. X was claiming from the insurer, the
latter demanded for the recession of the insurance
considering that they learned of the misrepresentation of
Mr. X. Mr. X claimed that he has no intent to defraud. Is a
defense of good faith tenable?
Read: Manulife - G.R. No. 204736
Read: Manila Bankers G.R. No. 175666 July 29, 2013

READ: G.R. No. 125678 PHILAMCARE

6. Mr. X insured the life of his wife making him as the
beneficiary. When asked whether his wife is suffering from
an illness, he answered “no”. After two years, his wife died.
The insurer denied his claim on the ground of
misrerpesenation. Is the insurer correct?