2014 (Commercial Law) Bar Exam Questions: Question 1

[Answer / discuss the question below. Or see 2014 bar exam Commercial Law Instructions; 2014 Commercial Law essay and multiple choice Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28 and 29; See also 2014 Bar Exam: Information, Discussions, Tips, Questions and Results]


Carlo and Bianca met in the La Boracay festivities. Immediately, they fell in love with each other and got married soon after. They have been cohabiting blissfully as husband and wife, but they did not have any offspring. As the years passed by, Carlo decided to take out an insurance on Bianca’s life for P1,000,000.00 with him (Carlo) as sole beneficiary, given that he did not have a steady source of income and he always depended on Bianca both emotionally and financially. During the term of the insurance, Bianca died of what appeared to be a mysterious cause so that Carlo immediately requested for an autopsy to be conducted. It was established that Bianca died of a natural cause. More than that, it was also established that Bianca was a transgender all along – a fact unknown to Carlo. Can Carlo claim the insurance benefit? (5%)

One comment

  1. The issue here finds the application of the insurable interest proper in determing whether Carlo can claim or not, the insurance benefits.

    Categorically, pursuant to Sec. 10 of the INSURANCE CODE, Carlo can not claim the insurance benefits in the consept of a spouse because the insured, being a transgender did not have a solid foundation in law for such, marriage to have binding effect. In short, it is void.

    Thus, Carlo having no Insurable interest in the life of Bianca cannot claim.

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