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Geagonia owned a store and obtained a 1-year fire insurance policy from Country Bankers covering his stock. The policy required Geagonia to notify the company of any other existing or subsequent fire insurance on the stock. Geagonia's stock was later destroyed by fire. Country Bankers denied his insurance claim because the stock was also covered by two other policies from PFIC that Geagonia did not disclose. The court ruled that Geagonia did not violate the notification requirement because he was unaware of the PFIC policies, which were obtained by his creditor Cebu Tesing Textiles without Geagonia's knowledge or consent. To void an insurance policy for breaching an "other insurance" clause, the other
Geagonia owned a store and obtained a 1-year fire insurance policy from Country Bankers covering his stock. The policy required Geagonia to notify the company of any other existing or subsequent fire insurance on the stock. Geagonia's stock was later destroyed by fire. Country Bankers denied his insurance claim because the stock was also covered by two other policies from PFIC that Geagonia did not disclose. The court ruled that Geagonia did not violate the notification requirement because he was unaware of the PFIC policies, which were obtained by his creditor Cebu Tesing Textiles without Geagonia's knowledge or consent. To void an insurance policy for breaching an "other insurance" clause, the other
Geagonia owned a store and obtained a 1-year fire insurance policy from Country Bankers covering his stock. The policy required Geagonia to notify the company of any other existing or subsequent fire insurance on the stock. Geagonia's stock was later destroyed by fire. Country Bankers denied his insurance claim because the stock was also covered by two other policies from PFIC that Geagonia did not disclose. The court ruled that Geagonia did not violate the notification requirement because he was unaware of the PFIC policies, which were obtained by his creditor Cebu Tesing Textiles without Geagonia's knowledge or consent. To void an insurance policy for breaching an "other insurance" clause, the other
Facts: Geagonia, owner of a store, obtained from Country Bankers 1year fire insurance covering the stock trading of dry goods. The policy noted the requirement that "3. The insured shall give notice to the Company of any insurance or insurances already effected, or which may subsequently be effected, covering any of the property or properties consisting of stocks in trade, goods in process and/or inventories only hereby insured, xxx The petitioners stocks were destroyed by fire. He then filed a claim which was subsequently denied because the petitioners stocks were covered by two other fire insurance policies issued by PFIC. The basis of the private respondent's denial was the petitioner's alleged violation of Condition 3 of the policy. The Insurance Commission found that the petitioner did not violate Condition 3 as he had no knowledge of the existence of the two fire insurance policies obtained from the PFIC; that it was Cebu Tesing Textiles which procured the PFIC policies w/o informing him or securing his consent; and that Cebu Tesing Textile, as his creditor, had insurable interest on the stocks. Issue: Whether or not Geagonia is prohibited from recovering from the Country Bankers ? Held: A policy may declare that a violation of specified provisions thereof shall avoid it, otherwise, the breach of an immaterial provision does not avoid the policy. To constitute a violation of the other insurance clause, the other insurance must be upon the same subject matter, the same interest therein, and the same risk.