Lincoln National Life v San Jaun c. They lack the element of INSURABLE INTEREST.

Misterioso
Petitioner: Lincoln National Life
Respondent: San Juan
Ponente:
DOCTRINE:
FACTS:
1. Luis Parco secured 5 life insurance policies from Lincoln National
Life.
2. He insured a certain Misterioso San Juan. He FALSELY
represented in the policies that:
a. Mysterioso was a proprietor and a fish merchant for 10
years.
b. That he had no employer but himself
c. That his income exceeds P5T a year
d. And that he had no pending applications for life insurance
3. Misterioso was in fact not a merchant, and that he is employed as a
tenant of Luis.
4. Also, a number of applications for insurance have been filed by Luis,
several of which have been declined.
5. Luis subsequently tries to collect from the policies. Allegedly,
Misterioso was killed. A severed human head in an advanced state
of decomposition found in a jeepney by its driver apparently left
intentionally by 2 unidentified passengers was said to be Misterioso.
6. Lincoln refuses to pay stating that there was false
misrepresentations, concealment of material facts made by
Misterioso and Luis and lack of insurable interest.
could not have afforded the insurance policies.
d. There is abundant evidence that the real party in interest in these
policies-the one who really took out the policies-is the defendant
Luis, and that Misterioso is merely a nominal party.
e. Luis or his wife Virginia is the beneficiary in every insurance
policy.
f. The policies were also found to have been acquired in quick
succession. It was found that the various postal money orders
issued in payment of the premiums were made by the employer.
It appears that, based on the circumstances and evidence, the
insurance was really taken out by the employer.
g. Note however that the amount of the paid premiums on the
insurance policies (P1.600T) should be returned to Luis, since it
has not been proved that he killed Misterioso. No criminal case
has been filed.
DISPOSITION
WHEREFORE, the appeal is hereby Approved.
SO ORDERED.

ISSUES:

1. W/N Luis can collect on the insurance policies.

RULING + RATIO:
1. No.
a. There is no shred of evidence that Lincoln had previous
knowledge of said false misrepresentations when it approved
the life insurance.
b. The present action is one for rescission of insurance contracts,
and Luis has the burden of proving the defense that Lincoln as
the insurer had previous notivce of such false
misrepresentations and/or concealment of material facts when
they approved the applications and issued the life insurance
policies.