INSURANCE LAW

Other cases may be assigned in the course of the semester

by: Judge E.D. Escalante

I. General Concepts

a. Definitions
b. Elements of an Insurance Contract
c. Characteristics/Nature of Insurance Contracts
d. Kinds
e. Perfection

Relevant Cases:
Phillipine Health Care Providers Inc. v. CIR, 600 SCRA 413, 18 September 2009
Enriquez v. Sun Life Assurance Co. of Canada, 41 Phil 269, 29 November 1920
Fieldmen's Insurance Co. v. Vda De Songco, 25SCRA 71 (1968)
Philam vs. Ansaldo, 234 SCRA 509
American Home Assurance v. Tantuco Enterprises, 366 SCRA 740 (2001)
Perez v. CA, January 28, 2000
Mitsubishi Motors Philippines Salaried Employees Union v. Mitsubishi Motors Corporation, GR No. 175773, June 17,2013
Sweet Lines Inc. v. Teves, GR L-37750, May 19, 1978
Sun Life Office, Ltd., v. CA, GR No. 92383, July 17, 1992
Alpha Insurance and Surety Co. v.

II. Risk That May Be Insured

III. Parties to an Insurance Contract
IV. Insurable Interest
a. In Life/Health
b. In Property
* Effect of Change of Interest : General Rule and Exceptions
V. Designation of Beneficiaries

Relevant Cases:
Great Pacific Life v. CA, 316 SCRA 677
Chan v. United Insurance Co., Inc., 277 SCRA 69
The Insular Life Assurance Co. v. Ebrado, 80 SCRA 181, 28 October 1977
Heirs of Loreto Maramag v. Maramag, 588 SCRA 744, 5 June 2009
Gercio v. Sun Life Assurance of Canada, 48 Phil 53, 28 September 1925
Gaisano Cagayan, Inc. v. Insurance Company of North America, 490 SCRA 286, 8 June 2006

VI. Right of Mortgagor and Mortgagee to Insure

VII. Change of Interest in Thing Insured: General Rule and Exceptions

VIII. Policy
a. Kinds
b. Interpretation
c. Cover Notes, Riders
d. Cancellation of Policy

Cases:
Lalican v. Insular Life Assurance Company, Ltd., GR No. 183526 August 25, 2009

IX. Premium Payment

a. Definition: Concept
b. Effect of Non-Payment of Premium; General Rule and Exceptions
c. Rule on Payment through Post-Dated Check
d. Payment through Agent
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 e. Over-insurance
f. Return of Premiums

Relevant Cases:
Jaime T. Gaisano v. Development Insurance And Surety Corporation, G.R. No. 190702, February 27, 2017
Makati Tuscany Condominium Corporation vs. Court of Appeals, 215 SCRA 463 [1992]
South Sea Surety and Insurance Company v. Court of Appeals, 244 SCRA 744, 2 June 1995
UCPB General Insurance, Inc. v. Masagana Telemart, 308 SCRA 259, 4 April 2001
American Home Assurance Co. v. Chua, 309 SCRA 250, 28 June 1999

X. Devices to Ascertain and Control Risk and Loss

a. Concealment
b. Representation
c. Warranty
d. Conditions
e. Exceptions
f. Incontestability Clause
g. Defenses not barred by Incontestability Clause

Relevant Cases:
Insular Life Assurance v. Khu GR No. 195276 April 18,2016
Manila Bankers Life Insurance Corporation v. Aban, 702 SCRA 417, 29 July 2013
Manulife Philippines v. Ybanez GR No. 204736 November 28, 2016
Alpha Insurance and Surety Co. v. Castor, 704 SCRA 550, 2 September 2013
Florendo v. Philam Plans, Inc., 666 SCRA 618, 22 February 2012
Fortune Medicare, Inc. v. Amorin, G.R. No. 195872, March 12, 2014
Sunlife Assurance Company of Canada v. Court of Appeals, 246 SCRA 268, 22 June 1995
Ng Gan Zee v. Asian Crusader Life Assurance Corp., 122 SCRA 461, 30 May 1983
Vda. De Canilang v. Court of Appeals, 223 SCRA 443, 17 June 1993
Tan v. Court of Appeals, 174 SCRA 403, 29 June 1989
Qua Chee Gan v. Law Union, 98 Phil 85 (1955)
Saturnino vs. Philam, 7 SCRA 316

XI. Loss and Claims Settlement

a. When Insured is Obliged to Pay/Not Obliged to Pay Loss
b. Notice and Proof of Loss
c. Guidelines on Claims Settlement

d. Subrogation

e. Period of Prescription

Relevant cases:
Stronghold Insurance Co., Inc. vs. Pamana Island Resort Hotel - G.R. No. 174838, June 01, 2016
Pioneer Insurance And Surety Corporation v. APL Co. Pte. Ltd. G.R. No. 226345, August 02, 2017
Alpha Insurance and Surety Co. v. Castor, 2 September 2013
Prudential Guarantee and Assurance Inc. vs. Trans-Asia Shipping Lines, Inc., GR No. 151890, June 20, 2006
New World Int'l Development Phils., Inc. vs. NYK-FILJAPAN Shipping Corp., GR No. 171468, August 24, 2011
Sun Insurance Office Ltd. vs. CA, 195 SCRA 193
Panlilio v. Cosio, 97 Phil 919
Loadmaster Customs Services Inc. v. Gloderl Brokerage Corp, GR No. 179446, January 10,2011
Malayan Insurance Co., Inc. vs. Alberto, GR No. 194320, Feb 1, 2012

XII. Double Insurance and Reinsurance

Geagonia vs.CA, 241 SCRA 152

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 CLASSES OF INSURANCE

I. Marine
a. Insurable Interest
b. Perils of the Sea, Perils of the Ship
c. Implied Warranties
d. Seaworthiness
e. General Average Loss v. Particular Average Loss
f. Deviation
f. Loss and Abandonment

CASES:
Cathay Insurance Co. v CA, GR 76145, June 30, 1987
Roque v. IAC, GR No. 66935, Nov. 11, 1985

II. Fire
a. Friendly v. Hostile Fire
b. Effect of Negligence
c. Alteration

Relevant case:

Malayan Insurance Company, Inc. v. PAP Co., Ltd. (Phil. Branch), 703 SCRA 314 7 August 2013

III. Compulsory Third Party Liability (CTPL)

- No Fault Clause
- Authorized Driver's Clause
- Theft Clause
- CASES
Paramount Insurance v. Remondeulaz, GR No. 173773, November 28, 2012
Alpha Insurance and Surety v. Castor, GR No. 198174, September 2, 2013
Tonco vs. Phil Guaranty, 150 SCRA 313
Perez vs. Alikpala, 160 SCRA 31
Perla Compania vs. Ancheta, 164 SCRA 144

IV. Casualty Insurance

 De la Cruz v. Capital Insurance & Surety, GR No. 21574, June 30, 1966

IV. Life
* Kinds
* Suicide Clause
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Sec. 3, pars. 3, 4 – minor – deleted

POLICY
Sec. 50, par. 4 Deleted replaced with:

“Notwithstanding the foregoing, the policy may be in electronic form subject to the pertinent provisions of Republic Act No. 8792,
otherwise known as the ‘Electronic Commerce Act’ and to such rules and regulations as may be prescribed by the Commissioner.

PREMIUM

Sec. 77. amended as follows:

An insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against. Notwithstanding any
agreement to the contrary, no policy or contract of insurance issued by an insurance company is valid and binding unless and until the premium
thereof has been paid, except in the case of a life or an industrial life policy whenever the grace period provision applies, or whenever under the
broker and agency agreements with duly licensed intermediaries, a ninety (90)-day credit extension is given. No credit extension to a duly licensed
intermediary should exceed ninety (90) days from date of issuance of the policy.
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“SEC. 78. amended as:
Employees of the Republic of the Philippines, including its political subdivisions and instrumentalities, and government-owned or -controlled
corporations, may pay their insurance premiums and loan obligations through salary deduction: Provided, That the treasurer, cashier, paymaster or
official of the entity employing the government employee is authorized, notwithstanding the provisions of any existing law, rules and regulations to
the contrary, to make deductions from the salary, wage or income of the latter pursuant to the agreement between the insurer and the government
employee and to remit such deductions to the insurer concerned, and collect such reasonable fee for its services.

Sec. 78 of the old law became Sec. 79. Hence, adjustments follow.

Sec. 81 of the old law is Sec. 82. It now has a second paragraph. Sec. 82 reads:

A person insured is entitled to a return of the premium when the contract is voidable, and subsequently annulled under the provisions of
the Civil Code; or on account of the fraud or misrepresentation of the insurer, or of his agent, or on account of facts, or the existence of which the
insured was ignorant of without his fault; or when by any default of the insured other than actual fraud, the insurer never incurred any liability under
the policy.
A person insured is not entitled to a return of premium if the policy is annulled, rescinded or if a claim is denied by reason of fraud.

Sec. 84: An insurer may contract and accept payments, in addition to regular premium, for the purpose of paying future premiums on the policy or
to increase the benefits thereof.