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Arcadia Manufacturing Corp secured PHP 25,000,000 property insurance from SecureAsia Insurance Co. for its Batangas plant. In the application, Arcadia stated that the plant had no prior fires and that the building’s fire-detection and suppression system was fully functional. In truth, one zone’s detectors were offline for two months and there were two small fires in the past year not disclosed. A fire occurred two months after issue, causing PHP 6,000,000 in damages. SecureAsia seeks rescission of the contract on the grounds of misrepresentation and concealment; Arcadia contends the misstatements were immaterial and the policy remains in force.   (a)Identify the controlling doctrine governing rescission of insurance contracts under PD 612 as amended by RA 10607 and state its essential elements. (b)Apply the doctrine to these facts: is rescission proper? what must the insurer prove, and what is the effect on the claim and on premiums already paid? (c)If rescission is improper, what other remedies may the insurer pursue and what are the consequences for Arcadia and the beneficiary?