INSURANCE

COURSE OUTLINE PART II

Atty. Eden C. Brion, CPA

I. MARINE INSURANCE

a. Definition
i. Ocean marine insurance
ii. Inland marine insurance
iii. Aviation insurance (aircraft hull policy)
b. Kinds of marine insurance policies
i. As to period covered
ii. As to risks covered
c. Perils of the sea and perils of the ship
d. Common clauses that modify the coverage
i. Inchmaree clause
ii. Running down clause
iii. Delay clause
iv. Sue and labor (S&L) clause
v. Protection and indemnity (P&I) clause
vi. Memorandum clause
e. Insurable interest
i. Vessel
ii. Cargo
iii. Freightage or income
f. Concealment
g. Representation
h. Implied warranties
i. Deviation
i. Proper and improper deviation
ii. Effects of deviation
j. Loss
i. Actual total
ii. Constructive total
iii. Partial
k. Abandonment
i. Requisites of valid abandonment
ii. Consequences of valid abandonment
l. Measure of indemnity
m. Co-insurance
i. Requisites
ii. Amount of recovery
iii. Sue and labor clause
n. Averages
i. Kinds of averages
ii. Measure of indemnity for general average contribution

Cases:
1. Filipino Merchants Insurance Co., Inc. vs. CA and Choa Tiek Seng, G.R. No. 85141,
November 28, 1989
2. Roque vs. IAC and Pioneer Insurance and Surety Corporation, G.R. No. L-66935,
November 11, 1985
3. Malayan Insurance Corporation vs. CA and TKC Marketing Corporation, G.R. No.
119599, March 20, 1997
4. The Philippine American General Insurance Company, Inc. vs. CA and Felman Shipping
Lines, G.R. No. 116940, June 11, 1997
 5. Oriental Assurance Corporation vs. CA and Panama Saw Mill Co., Inc., G.R. No. 94052,
August 9, 1991
6. Pan Malayan Insurance Corporation vs. CA and The Food and Agricultural Organization
of the United Nations, G.R. No. 95070, September 5, 1991

II. CASUALTY INSURANCE AND COMPULSORY MOTOR VEHICLE LIABILITY INSURANCE

a. Casualty insurance
i. Definition
ii. Kinds of casualty insurance
iii. No action clause
iv. Authorized driver clause
v. Theft clause
b. Comprehensive Motor Vehicle Liability Insurance
i. Definition
ii. Forms of CMVLI
iii. Amount of indemnity
iv. No fault indemnity clause
v. Cancellation
vi. Prescription

Cases:
1. Fortune Insurance and Surety Co., Inc. vs. CA and Producers Bank of the Philippines,
G.R. No. 115278, May 23, 1995
2. Palermo vs. Pyramid Insurance Co., Inc., G.R. No. L-36480, May 31, 1988
3. Perla Compania de Seguros, Inc. vs. CA and Spouses Lim, G.R. No. 96452, May 7, 1992
4. Villacorta vs. Insurance Commission, G.R. No. L-54171, October 28, 1980
5. Paramount Insurance Corporation vs. Spouses Remondeulaz, G.R. No. 173773,
November 28, 2012
6. Pan Malayan Insurance Corporation vs. CA and Errlinda Fabie, G.R. No. 81026, April 3,
1990
7. Shafer vs. RTC of Olongapo and Makati Insurance Company, G.R. No. 78848,
November 14, 1988
8. Malayan Insurance Co. vs. CA, G.R. No. L-36413, September26, 1988
9. Perla Compania de Seguros, Inc. vs. Ancheta, G.R. No. L-49699, August 8, 1988

III. FIRE INSURANCE

a. Definition
b. Risks covered
c. Acts of the insured
d. Alteration
e. Extent of indemnity
f. Option to rebuild clause

Case:
1. Malayan Insurance vs. PAP, G.R. No. 200784, August 7, 2013

IV. LIFE INSURANCE

a. Definition
b. Kinds
i. Ordinary
ii. Limited payment
iii. Term
iv. Endowment
c. Measure of indemnity
 d. Rules on minor beneficiaries
e. Suicide clause

V. SURETYSHIP

a. Definition
b. Nature of liability of a surety
c. Suretyship vs. ordinary insurance contract
d. Suretyship vs. guaranty
e. Common types of surety bond
i. Fidelity bond
ii. Contract bond
iii. Legal bond