De La Salle University College of Law 1st term, AY 2013-2014 Course: Day and time: Units: Professor: Insurance Law

Saturdays, 9:00-11:00 a.m. and 11:30 a.m. to 1:30 p.m. (2 sections) Two (2) units per section Atty. Barbara Anne C. Migallos Mobile: 0918 822 8889 Land line: (02) 899 2123 Email: bcm@migalloslunalaw.com As requested by students, subject to scheduling considerations

Consultations: Course Description:

The course will cover Philippine insurance law, focusing on the concept, functions and characteristics of insurance contracts; what may be insured; insurable interest; devices for ascertaining risk of loss (concealment and representation; warranties; exceptions); premium; the concepts of loss, notice and proof of loss; double insurance; reinsurance; classes of insurance; the business of insurance and regulation of the insurance industry. Philippine insurance law is rich in jurisprudence, and discussions will be focused on the Supreme Court decisions and the precedents they set. A detailed outline of the topics (legal provisions and Supreme Court cases) will be provided to the students. Learning outcome The objective of the course is for students to know and understand the principles of insurance law and their application to different factual situations. Insurance law is a very important part of commercial law, and understanding its precepts is essential to prepare students initially for the bar examinations and ultimately for the practice of law. From a practical perspective, the course will help students understand the importance of insurance and the role it plays for the future and security of individuals as well as businesses. Course output (1) There will be recitation at every class, and it is expected that at the end of the course, students will be able to intelligently discuss and answer questions on insurance law and its application to specific situations. (2) There will be mid-term and final exams. Grading: (1) Recitation: (2) Mid-term exam: (3) Final exam: 40% 20% 40%

OUTLINE

Insurance Law - 1st Term, AY 2013-2014 I. GENERAL PROVISIONS Sections 1-2, Insurance Code (IC); De Leon, pages 1-60 1. Concept of insurance 2. History and origin of insurance; sources of Philippine insurance law 3. Laws governing insurance 4. Applicability of the Civil Code Art. 2011, Civil Code (CC) a) Requisites for validity of contract in general - Offer and acceptance; consent; subject matter; cause or consideration; capacity of contracting party See: De Lim v. Sun Life of Canada, GR 15774, 29 November 1929 Enriquez v. Sun Life of Canada, 41 Phil. 269, 29 November 1920 Perez v. Court of Appeals, 323 SCRA 613 (2000) DBP v. Court of Appeals & Dans, et al., 231 SCRA 370 (1994) Zenith Insurance v. Fernandez, 186 SCRA 398 (1990) b) Void donations Art. 2012 & Art. 739, CC See: Insular Life v. Ebrado, et al., 80 SCRA 181 (1977) c) Life annuity contracts - Art. 2021-2127, CC d) Compulsory motor vehicle liability insurance - Art. 2186, CC 5. Contract of insurance a) Definition b) Requisites for validity c) Distinguishing or essential elements d) Characteristics See: Gulf Resorts v. Philippine Charter Insurance, 458 SCRA 550 (2005) 6. Subrogation Art. 2027, CC See: Pan Malayan Insurance v. Court of Appeals, 184 SCRA 54 (1990) Manila Mahogany v. Court of Appeals, 154 SCRA 650 (1987) Federal Express v. American Home Assurance, 437 SCRA 50 (2004) Sveriges Assurance v. Qua Chee Gan, 21 SCRA 12 (1967) Rizal Surety and Insurance v. Manila Railroad, 23 SCRA 205 (1968) National Union Fire Insurance v. Stolt-Nielsen, 184 SCRA 1990 St. Paul Fire & Marine v. Macondray, 70 SCRA 122 (1976) Cebu Shipyard v. William Lines, 306 SCRA 762 (1999) Firemans Fund Assurance v. Jamila & Co., 70 SCRA 323 (1976) F.F. Cruz & Co. v. Court of Appeals, 164 SCRA 731 (1986) Compania Maritima v. Insurance Co. of North America, 12 SCRA 213 7. Construction of insurance contracts See: Art. 1377, CC Calanoc v. Court of Appeals, GR L-1851, 16 Dec. 1955 Biagtan v. Insular Life, 41 SCRA 58 (1972) Qua Chee Gan v. Law Union and Rock Insurance Co., 98 Phil. 85 (1955)

Ty. First National Surety Assurance, 1 SCRA 1324 (1961) De la Cruz v. Capital Insurance, 17 SCRA 559 (1966) Taurus Taxi v. Capital Insurance, 24 SCRAA 454 (1968) CCC Insurance v. Court of Appeals, 31 SCRA 264 (1970) Sun Life Insurance v. Court of Appeals, 211 SCRA 554 (1990) Perla Cia. De Seguros v. Court of Appeals, 208 SCRA 487 (1992) Fortune Insurance v. Court of Appeals, 244 SCRA 308 (1996) 8. Business of insurance See: White Gold Marine Services v. Pioneer Insurance, 464 SCRA 448 (2005) Philamcare Health Systems v. Court of Appeals, 379 SCRA 356 9. Classes of insurance II. CHAPTER I: THE CONTRACT OF INSURANCE A. What may be insured Title 1, Sections 3-5, IC; De Leon, pp. 62-73 B. Parties to insurance contract Title 2, Sections 6-10, IC; De Leon, pages 70-84 1. Who may be an insurer Sec. 6 2. Who may be insured Sec. 7 - Public enemy; effect of war See: Filipinas Cia. De Seguros v. Christern Huenfeld, 89 Phil. 54 (1951) Constantino v. Asia Life Insurance, 87 Phil. 248, 31 August 1950 Sales de Gonzaga v. Crown Life Insurance, GR L-4197, 20 March 1957 3. Mortgagor & Mortgagee Sec. 8 and 9 See: Grepalife v. Court of Appeals, 316 SCRA 677 (1999) Palileo v. Cosio, 97 Phil. 919 (1955) Saura Import & Export v. Phil. International Surety, 8 SCRA 143 (1963) Philippine National Bank v. Court of Appeals, 158 SCRA 201 (1988) San Miguel v. Law Union Rock, 40 Phil. 674 (1920) Gonzalez LaO v. Yek Tong Lin Fire, GR 33131, 13 Dec. 1930 C. Insurable interest Title 3, Sec. 10-26, IC; De Leon, pages 85-130 1. Insurable interest in general; why necessary; effect of lack of insurable interest Sec. 18, 25, IC 2. Insurable interest in life insurance Sec. 10 See: Lalican v. Insular Life, 597 SCRA 159 (2009) definition Insular Life v. Ebrado, 80 SCRA 181 (1977) El Oriente v. Posadas, 54 Phil. 147 See Family Code provisions on support 3. When insurable interest in life must exist see Sec. 181, IC 4. Beneficiary Sec. 11, IC See: Art. 2012 and 739, CC Insular Life v. Ebrado, 80 SCRA 181 (1977) Vda. De Consuegra v. GSIS, 37 SCRA 316 (1971) Gercio v. Sun Life Insurance, 48 Phil. 53 (1925)

Nario v. Phil-Am Life, 20 SCRA 434 (1967) Phil-Am Life v. Pineda, 175 SCRA 416 (1989) 5. Forfeiture of interest of beneficiary Sec. 12, IC 6. Insurable interest in property insurance Sec. 13, 14, IC See: Gaisano Cagayan v. Ins. Co. of North America, 490 SCRA 286 (2006) Commercial Union Assurance. v. Lepanto, 113 SCRA 752 (1982) Harding v. Commercial Union Assurance, 38 Phil. 464 (1918) Lampano v. Jose, 30 Phil. 537 (1915) 7. Insurable interest of carrier of depositary Sec. 15, IC See: Lopez v. del Rosario, 44 Phil. 98 (1922) 8. Contingent or expectant interest not an insurable interest Sec. 16, IC 9. Measure of insurable interest Sec. 17, IC See: Ong Lim Sing, Jr. v. FEB Leasing, 524 SCRA 333 (2007 Philam Health Systems v. Court of Appeals, 379 SCRA 356 (2002) 10. Effect when no insurable interest exists Sec. 18, IC See: Spouses Cha v. Court of Appeals, 277 SCRA 690 (1997) Garcia v. Hong Kong Fire & Marine Insurance, GR 20341, 1 Sept 1923 11. When insurable interest must exist Sec. 19, IC See: Tai Tong Chuache v. Insurance Commission, 158 SCRA 366 (1988) 12. Change in interest in property Sec. 20, 21, 22, 23, 24 See: San Miguel v. Law Union Rock, 40 Phil. 674 (1920) 13. Prohibited stipulation in policy Sec. 25, IC D. Concealment Title 4, Sec. 26-35, 51, IC; De Leon, pages 131-149 1. 2. 3. 4. 5. 6. 7. 8. Definition Sec. 26, IC Effect of concealment on insurance contract Sec. 27, IC Duty to communicate Sec. 28, IC Intentional or fraudulent omission Sec. 29, IC What need not be communicated; exceptions Sec. 30, 35, 35, 51, IC Test of materiality Sec. 31, IC Matters each party is bound to know Sec. 32, IC Waiver of right to information Sec. 33, IC See: Argente v. West Coast Life Insurance, 9 March 1928 Great Pacific Life v CA; Mondragon v. CA, 89 SCRA 543 (1979) Saturnino v. Philippine American Life, 7 SCRA 316 (1963) Canilang v. CA & Great Pacific Life 223 SCRA 443 (1993) Sun Life Assurance v. CA & spouses Bacani, 245 SCRA 268 (1995) Edillon v. Manila Bankers Life Assurance, 117 SCRA 187 (1982)

E. Representation Title 5; Sec. 37-48, 51, IC; De Leon, pages 150-170 1. 2. 3. 4. 5. 6. Definition How representation is made Sec. 36 When representation made Sec. 37 Construction of representation Sec. 38 Promissory representation Sec. 39 Effect of representation on provisions of policy; on implied warranty Sec. 40

7. When representation may be withdrawn Sec. 41 8. Time to which representation refers Sec. 42 9. Information from third person; from agent Sec. 43 10. When representation deemed false Sec. 44 11. Effect where representation is false Sec. 45 12. Determination of materiality Sec. 46 13. Applicability to modifications of original contract Sec. 47 14. Rescission; incontestability Sec. 48 - Defenses not barred by incontestability clause See: Art. 1370-1378, Civil Code Sec. 10-19, Rule 130, Revised Rules of Court Ng Gan Zee v. Asian Crusader Life, 122 SCRA 461 (1963) Tan v. Court of Appeals and Phil-Am Life, 174 SCRA 403 (1989)

F. The Policy Title 5, Sec. 49-66, IC; De Leon, pp. 171-220 1. Definition; form Sec. 54-50, IC a) Terms of policy constitute the measure of the insurers liability See: Pacific Banking v. CA, 168 SCRA 1 (1988) Oriental Assurance v. Court of Appeals, 200 SCRA 459 (1991) Fortune Assurance v. Court of Appeals, 244 SCRA 308 (1995) b) Perfection of contract; contract of adhesion See: Cases re contract of insurance (see above) Cases re construction of insurance contract (see above) c) Delivery of policy d) Riders; attached papers e) Effect of insureds failure to read policy is there a duty to read the policy? f) Insurers duty to explain g) Group insurance 2. Contents of policy Sec. 51; 226, 227, 229, 230, 231, IC 3. Preliminary contracts of insurance Sec. 52 a) Issuance and renewal of cover notes b) Rules on cover notes See: Great Pacific Life v. Court of Appeals, 89 SCRA 543 (1979) 4. Persons entitled to recover on policy Sec. 53 See: Bonifacio Brothers v. Mora, 20 SCRA 261 (1967) Heirs of L.G. Maramag v. Maramag, 588 SCRA 774 (2009) Coquia v. Fieldmens Insurance, 26 SCRA 178 (1968) 5. Insurance by agent or trustee Sec. 54 See: Lopez v. Del Rosario, 44 Phil 98 (1922) 6. Insurance by partner/co-owner Sec. 55 7. Where description of insured general Sec. 56, 57 8. Effect of transfer of thing insured Sec. 58 9. Open, valued and running policies Sec. 59, 60, 61, 62 See: Development Bank v, Intermediate Appellate Court, 143 SCRA 62 (1986) 10. Commencement of action Sec. 63 - When cause of action accrues See: Teal Motor v. Orient Insurance, 59 Phil. 809 Ang v. Fulton Fire Insurance, 2 SCRA 945 (1961)

Sun Insurance Office v. CA, 195 SCRA 193 (1991) Pacific Banking Corp. v CA, 168 SCRA 1 (1988) Travellers Insurance v. CA, 272 SCRA 536 (1997) Lopez v. Compania de Seguros, 16 SCRA 855 (1966) ACCFA v. Alpha Insurance, 24 SCRA 151 (1968) 11. Cancellation of non-life policy Sec. 62 See: Saura Import & Export v. Phil. Intl Surety 8 SCRA 143 (1963) Malayan Insurance v. Cruz-Arnaldo, 154 SCRA 672 (1987) G. Warranties Title 7, Sec. 67-76, IC; De Leon, pages 221-237 Definition Distinguished from representations Kinds of warranty Sec. 67 Time to which warranty relates Sec. 68 (a) Past, present or future (b) Affirmative or promissory 5. Language Sec. 69 6. Where express warranty contained Sec. 70 7. Express warranty Sec. 71 8. Warranty of facts or omissions Sec. 72 9. When breach of warranty does not avoid policy- Sec. 73 10. Effect of violation of material warranty Sec. 74 11. Immaterial provision in policy Sec. 75 12. Breach of warranty without fraud Sec. 76 13. Conditions; distinguished from warranties 14. Exceptions; distinguished from warranties and conditions 15. Effect warranties, conditions and exceptions See: American Home Insurance v. Tantuco Enterprises, 366 SCRA 740 (2011) Ang Giok v. Springfield Fire & Mutual Insurance, 56 Phil. 375 (1931) Qua Chee Gan v. Law Union and Rock Insurance, 98 Phil 85 (1955) Pioneer Insurance v. Yap, 61 SCRA 426 (1974) Prudential Guarantee v. Trans Asia Shipping, 491 SCRA 411 (2006) 1. 2. 3. 4.

H. Premium Title 8, Sec. 77-82, IC; De Leon, pages 238-276 1. Definition of premium; distinguished from assessment 2. Payment of premium; effect of non-payment Sec.77 - Nature of obligation; extension of credit; when policy binding despite non-payment of premium 3. Effect of acknowledgement of payment; effect of acceptance Sec. 78 4. When insured entitled to return of premium paid Sec. 79, 80, 81, 82 See: Arce v. Capital Insurance, 117 SCRA 63 (1982) Phil. Phoenix Surety & Assurance v. Woodworks, Inc., 20 SCRA 1270 (1967) and 92 SCRA 419 (1979) Makati Tuscany Condominium v. Court of Appeals, 215 SCRA 463 (1992) Tibay v. Court of Appeals, 257 SCRA 126 (1996)

Malayan Insurance v. Court of Appeals, 154 SCRA 672 (1987) UCPB General Insurance v. Masagana Telemart, 356 SCRA 307 (2001) American Home Insurance v. Tantuco Enterprises, 366 SCRA 740 (2001) Great Pacific Life Insurance v. Court of Appeals, 184 SCRA 501 (1990) Stokes v. Malayan, 127 SCRA 766 (1984) Capital Insurance v. Plastic Era, 65 SCRA 134 (1975) I. Loss Title 9, Sec. 83-92, IC; De Leon, pages 277-297 1. Claim defined 2. Loss defined; scope of loss; see also Art. 1189, Civil Code 3. Transfer of claim after loss occurs Section 83, IC 4. Liability of insurer for loss Section 84, IC - Proximate cause; extent of loss; burden of proof; proximate cause 5. Extension of the principle of proximate cause Section 85, IC 6. Where proximate cause is an excepted peril Section 86, IC 7. Liability of insurer for loss due to willful act; due to negligence Section 87, IC See: CCC Insurance v. Court of Appeals, 31 SCRA 264 Country Bankers Insurance v. Llanga Bay and Community Multi-purpose Cooperative, 374 SCRA 653 (2002) Paris-Manila Perfumery v. Phoenix Assurance, 49 Phil. 753 (1926) FGU Insurance v. Court of Appeals, 454 SCRA 337 (2005)

J. Notice and proof of loss Title 10, Sec. 88- 92, IC; De Leon, pages 289-297 1. Conditions before and after loss 2. Notice of loss to insurer Sec. 88, IC 3. Proof of loss Sec. 89, 90, 91, 92, IC - Meaning and nature; form; purpose; burden of proof of loss; defects; delay See: Malayan Insurance vs. Cruz-Arnaldo, 154 SCRA 672 (1987) Yu Ban Chuan v. Fieldmens Insurance, 14 SCRA 491 (1965) Go Lu v. Yorkshire Insurance, 43 Phil. 633 (1922) Finmans General Assurance v. Court of Appeals, 361 SCRA 214 (2001) Pacific Timber v. Court of Appeals, 112 SCRA 199 (1982)

K. Double insurance Title 11, Sec. 93-94, IC; De Leon, pages 298-305 1. Double insurance defined Sec. 93, IC - Requisites, distinguished from over-insurance; binding effect of stipulation against; purpose of prohibition 2. Payment of claim where there is over-insurance by double insurance Sec. 94, IC See: Sta. Ana v. Commercial Union Assurance, 55 Phil. 329 (1930) Union Manufacturing v. Phi Guaranty, 47 SCRA 271 (1972) Pioneer Insurance v. Yap, 61 SCRA 426 (1974

Geagonia v. Court of Appeals, 241 SCRA 152 (1995) Pacific Banking Corp. v. Court of Appeals, 168 SCRA 1 (1968) L. Reinsurance Title 12, Sections 95-98, IC; De Leon, pages 306-316; Dizon, pages 529-540 1. Reinsurance defined Section 95, IC - Purpose, functions, distinguished from double insurance 2. Duty of reinsured to disclose facts Section 96, IC - Treaty v. facultative reinsurance 3. Nature of reinsurance contract - Section 97, IC - Subrogation in reinsurance 4. Original insured and contract of reinsurance Section 98, IC See: Pioneer Insurance v. Court of Appeals, 175 SCRA 668 (1989) Gibson v. Revilla, 92 SCRA 219 (1979) Artex Development v. Wellington Insurance, 51 SCRA 352 (1973)

III. CLASSES OF INSURANCE (Chapter II, Insurance Code) A. Marine Insurance Title 1, Sec. 99-166; De Leon, 317-391 1. Definition of marine insurance Sec. 99; See De Leon, pages 319-330 a) Scope of ocean marine insurance b) Risks or losses covered in ocean marine insurance c) Perils of the sea; distinguished from perils of the ship d) Proximate cause of loss e) All risks marine policy See: Roque v. Intermediate Appellate Court, 139 SCRA 596 (1985) Go Tiaco v. Union Insurance of Canada, 40 Phil. 40 (1919) Choa Tiek Seng v. Court of Appeals, 183 SCRA 223 (1990) Filipino Merchants Ins. v. Court of Appeals, 179 SCRA 638 (1989) 2. Insurable interest Sec. 100- 106; De Leon, pages 330- 340 a) Of ship owner - in the vessel Sec.100; Sec. 101 - in the freightage Sec. 102, 103, 104 b) Of the shipper or consignee c) In the profits Sec. 105 d) Of charterer Sec. 106 See: Puromines v. Court of Appeals, 220 SCRA 281 (1993)] Caltex (Phils.) Inc. v. Sulpicio Lines, 315 SCRA 709 (1999) San Miguel v. Heirs of Inguito, 384 SCRA 87 (2002) 3. Concealment in marine insurance Sec. 107-110; De Leon, pp. 340-345 a) Additional duty to communicate Sec. 107 b) Opinions or expectations of third party Sec. 108 c) Presumptive knowledge by insured of prior loss Sec. 109 d) Instances where concealment does not vitiate entire contract Sec.110 4. Representation in marine insurance Sec.111 -112; De Leon, pp. 343-345 a) Effect of false representation Sec. 111

b) Falsity of representation as to expectation Sec. 112 5. Implied warranty of seaworthiness Sec.113, 114, 115, 117, 118; De Leon, pp. 345-355 a) Implied warranty of seaworthiness Sec. 113 b) What constitutes seaworthiness Sec. 114 c) When complied with; exceptions Sec. 115 d) Scope of seaworthiness of vessel Sec. 116 e) Seaworthiness during voyage in stages Sec. 117 f) Delays in repairs where ship becomes unseaworthy during voyage Sec. 118 See: Caltex (Phils.) Inc. v. Sulpicio Lines, 315 SCRA 709 (1999) San Miguel v. Heirs of Inguito, 384 SCRA 87 (2002) Philippine American General Insurance v. CA, 273 SCRA 262 (1997) Delsan Transport v. CA, 369 SCRA 24 (2001) 6. Express warranty as to nationality or neutrality - implied warranty to carry requisite documents Sec. 120 7. Voyage and Deviation Sec. 121, 123. 124, 125; De Leon, pp. 356-359 a) Meaning of deviation; cases of deviation Sec. 121-123 b) Proper deviation Sec. 124 c) Improper deviation Sec. 125 d) Effect of improper deviation Sec. 126 8. Loss Sec. 127-137; De Leon, pages 359-369 a) Kinds of loss Sec. 127, 128, 129 b) Actual total loss Sec. 130 c) Constructive total loss Sec. 131 d) Presumption of actual total loss Sec. 132 e) Liability of insurer in case of reshipment Sec. 133 f) Additional liability of insurer of goods Sec.134 g) Right of insured to payment upon actual total loss Sec. 135 h) Average Sec. 136 i) Scope of insurance against actual total loss Sec. 137 See: Oriental Assurance v. Court of Appeals, 200 SCRA 459 (1991) Philippine Home Assurance v. Court of Appeals, 257 SCRA 468 (1996) 9. Abandonment Sections 138-155; De Leon, pp. 381 a) Meaning Sec. 138 b) Requisites (i) Relinquishment Sec. 138 (ii) Constructive total loss Sec. 139 (iii) Must be absolute Sec. 140 (iv) Within reasonable time Sec. 141 (v) Factual Sec. 142 (vi) Notice Sec. 143, 144, 145 c) Effect of valid abandonment Sec. 146 d) Rights & liabilities of insurer who pays Sec. 147; 148 f) Refusal to accept abandonment Sec. 149 g) Acceptance of abandonment Sec. 150, 151, 152, 153, 154 10. Measure of indemnity Sections 156 166, De Leon, pages 381-391 B. Fire insurance Title 2, Sections 167 173, IC; De Leon, pages 392 405 1. Definition; coverage Sec. 167

2.

3. 4.

5.

a) Fire and extended coverage b) Concept of fire c) Direct and indirect losses d) Ocean marine and fire policies distinguished Alteration in thing insured Sec. 168; Sec. 169 a) Alterations that increase risk or hazard b) Alterations that do not increase risk or hazard c) Effect of alteration on policy d) Insureds control or knowledge of alteration e) Application of Section 75 (breach of immaterial warranty) Acts of insurer subsequent to execution of policy Sec. 170 Measure of indemnity Sec. 171; Sec. 172 a) Open policy b) Valued policy c) Co-insurance clause d) Option to rebuild clause Pledge or transfer of fire insurance policy after loss Sec. 173 a) General rule Sec. 21; Sec. 83 See: Philippine Home Assurance v. Court of Appeals, 257 SCRA 468 (1996) Bachrach v. British American Assurance, 17 Phil. 35 (1910) Tan Chuco v. Yorkshire Fire and Life Insurance, 14 Phil. 346 (1909) Malayan Insurance v. Cruz-Arnaldo, 154 SCRA 672 (1987)

C. Casualty Insurance Title 3, Sec. 174; De Leon, pp. 406 420 1. Definition 2. Two general divisions of casualty insurance 3. Liability insurance a) Definition b) Insurable liability c) Insurrable interest in liability insurance d) When payable e) When does injured party have the right to sue the insurer directly? f) Basis and extent of insurers liability g) Accident and health insurance Review: Guingon v. Del Monte, 20 SCRA 1043 (1967) De la Cruz v. Capital Insurance, 17 SCRA 559 (1966) Pan Malayan v. Court of Appeals, 184 SCRA 54 (1990) Sun Insurance v. Court of Appeals, 211 SCRA 554 (1990) Biagtan v. Insular Life, 144 SCRA 58 (1972) Calanoc v. Court of Appeals, 98 Phil. 79 (1955) Phil Am Care Health Systems v. Court of Appeals, 379 SCRA 356 (2002) Fortune Insurance v. Court of Appeals, 244 SCRA 308 (1996) Perla Compania Seguros v. Ramolete, 203 SCRA 487 (1991) Shafer v. Judge of RTC, 167 SCRA 386 (1986) Malayan Insurance v. CA, Vallejos et al.,, 165 SCRA 136 (1998) Heirs of G.Y. Poe v. Malayan Insurance, 584 SCRA 152 (2009)

See:

Vda. De Maglana vs. Consolacion, 212 SCRA 268 (1992) GSIS v. Court of Appeals, 308 SCRA 559 (1999) Finman Gen. Assurance v. Court of Appeals, 213 SCRA 493 (1992) D. Suretyship Title 4, Sections 175 178; De Leon, pp. 421 431 1. Suretyship defined Sec. 175 a) Undertakings within scope of suretyship b) Corporate suretyship 2. Nature of liability Sec. 176 a) Joint and several with principal b) Limited to amount of the bond c) Determined strictly by the terms of the contract 3. Distinction from: property insurance; guaranty 4. Payment of premiums Sec. 177 5. Types of surety bonds 6. Applicability of Civil Code provisions Sec. 178 See: Philippine Pryce Assurance v. Court of Appeals, 230 SCRA 164 (1994) AFP General Insurance v. Molina, 556 SCRA 630 (2008) Reparations Com. v. Universal Deep Sea Fishing 83 SCRA 764 (1978) Arranz v. Manila Fidelity, 101 Phil. 272 (1957) Capital Insurance v. Ronquillo Trading, 123 SCRA 526 (1983)

E. Life Insurance Title 5, Sections 179 183; De Leon, pp. 432 449 1. Definition; nature a) Sec. 179; Sec. 180 b) Parties involved c) Distinguished from fire and marine (property) insurance d) Kinds: ordinary life; term; endowment; e) Scope f) Annuity 2 Liability of insurer in case of suicide Sec. 180-A 3 Right of insured to assign life insurance policy Sec. 181; Sec. 182 4 Measure of indemnity Sec. 183 5 Other provisions pertinent to life insurance a) Grace period for payment of premium Sec. 227(a) b) Cash surrender value Sec. 227(f),(g),(h) c) Reinstatement Sec. 227(j) d) Industrial life insurance Sec. 229; Sec. 230