Beruflich Dokumente
Kultur Dokumente
156956
October 9, 2006
Facts:
Vilfran Liner lost in a case against Del Monte Motors. They were made to
pay 11 million pesos for service contracts with Del Monte, and such was sourced
from the counterbond posted by Vilfran. CISCO issued the counterbond. CISCO
opposed but was rebuffed. The RTC released a motion for execution commanding
the sheriff to levy the amount on the property of CISCO. To completely satisfy the
amount, the Insurance Commissioner was also commanded to withdraw the
security deposit filed by CISCO with the Commission according to Sec 203 of the
Insurance Code.
Insurance Commissioner Malinis was ordered by the RTC to withdraw the
security bond of CISCO for the payment of the insurance indemnity won by Del
Monte Motor against Vilfran Liner, the insured.
Malinis didn’t obey the order, so the respondent moved to cite him in
contempt of Court. The RTC ruled against Malinis because he didn’t have legal
basis.
Issues:
Whether or not the Insurance Commissioner has power to withhold the release of
the security deposit.
Held:
The Insurance Code has vested the Office of the Insurance Commission with
both regulatory and adjudicatory authority over insurance matters.
Under Sec 414 of the Insurance Code, "The Commissioner may issue such rulings,
instructions, circulars, orders and decisions as he may deem necessary to secure the
enforcement of the provisions of this Code.” The commissioner is authorized to:
Included here is the duty to hold security deposits under Secs 191 and 202 of
the Code for the benefit of policy holders. Sec 192, on the other hand, states:
He has been given great discretion to regulate the business to protect the public.
Also “An implied trust is created by the law for the benefit of all claimants under
subsisting insurance contracts issued by the insurance company.” He believed that
the security deposit was exempt from execution to protect the policy holders.