Part I Applicable Laws Implementing Office Nature of Insurance A. Concepts Defined 1. Contract of Insurance (Sec.

2) Case: Mayer Steel Pipe vs Court of Appeals (1997); 2. Doing or Transacting an Insurance Business (Sec.2, no.2) Phil Health Care Providers vs Commissioner of Internal Revenue, GR. No. 167330 (9/18/09) 3. Contract of Adhesion or Fine Print Rule Eternal Garden Memorial vs. Phil American Life Insurance GR No. 166245 (4/9/08); Western Guaranty Corporation vs CA 187SCRA652 4. Parties in Insurance Contract - Insurer and Insured (sec.6), beneficiary (arts. 739 & 2012 of the NCC). Case: Great Pacific Life vs CA, 316 SCRA 677; 5. Interpretation of Insurance Contracts Case: Rizal Surety vs CA, 336 SCRA 12 (2000); American Home Assurance vs Tantuco GR. NO. 138941, 8 October 2001; Pan Malayan Insurance vs CA, GR No. 81026 (4/3/90) B. Characteristics of Insurance Contract 1. Aleatory Insurance- Malayan Insurance vs Arnaldo & Pinca, GR. No. L67835 (10/12/87) 2. Contract is considered a risk-distributing device Tibay vs CA GR No. 119655 (5/24/95) 3. Uberrima Fides (perfect good faith) - Fieldmans Insurance vs CA GR No. L-24833 (9/23/68) 4. Contract of Indemnity- White Gold Marine vs Pioneer Insurance GR. 154514 (7/28/05) 5. Personal Contract Insular Life vs Ebrado G.R> No. L-44059 (10/28/77) C. Classes of insurance a. Marine b. Fire c. Casualty d. Suretyship e. Life f. Compulsory Motor Vehicle Liability Insurance D. What may be insured against 1. A future contingent event resulting in loss or damage 2. A past unknown event resulting in loss or damage 3. Contingent liability E. Parties to an insurance contract 1. The insurer 2. The insured 3. The beneficiary Sec.11 a. Beneficiary of one who insures his own life b. Beneficiary of life insurance on the life of another person c. Beneficiary of property insurance F. Insurable Interest Sec. 10 1. Insurable interest defined- Gaisano Cagayan vs Insurance Company of North America GR. No. 147839 (6/08/06) 2. Insurable interest in life/Health Hilario Gercio vs Sunlife GR No. 23703 (48 Phil 53) 3. Insurable Interest in Property (Sec. 13 & 14) Filipino Merchants Co. vs CA 179 SCRA 638 G. Perfection of the Contract of Insurance a. Offer and Acceptance/Consensuality (1) Delay in acceptance - Virginia Perez vs BF Lifeman Insurance GR No. 112329 (1/28/2000) (2) Delivery of Policy b. Premium Payment c. Non-Default Options in Life Insurance d. Reinstatement of a Lapsed Policy of Life Insurance Rufino Andres vs The Crown Life Insurance G.R. No. L-l0874 January 28, 1958 e. Refund of Premiums

Part II

DEVICES TO DELIMIT SUBJECT MATTER OF INSURANCE a. Concealment case: Sunlife Assurance vs CA, 245 SCRA 268; Philamcare Health Systems vs CA and Julita Trinos, GR no. 125678, March 18, 2002; b. Representation (sec.36) Kinds (Sec.39); Test of Materiality (Sec.31) c. Warranties Effect of Breach of warranty (sec.74-76). Case: Perla Cia De Seguros Inc vs CA, 208 SCRA 487 Part III THE POLICY OF INSURANCE A. Policy defined (sec. 49) 1. Form 2. Cover notes case: Pacific Timber Export vs CA, 112 SCRA 199 B. Contents of the policy (Sec. 51) C. Specific Code Provisions relating to policies Incontestability clause (sec.48); Rider (sec.50) D. Unilateral Cancellation of Policy (sec. 64 65 and 79) 1. By the INSURER case: Malayan Insurance CO. Inc. vs Cruz Arnaldo, 154 SCRA 672 2. Only grounds for cancellation 3. Cancellation by the INSURED (sec.79) 4. Kinds of Policies Open Policy (sec.60), Valued Policy (sec.61) Running Policy (sec.62) E. The Premium (Sec.77 and 78 ) Cash and Carry Provision 1. Effect of non-payment of premium Case: Areola vs CA, 236 SCRA 643 2. Effect of partial payment of premium Case: Tibay vs CA, 257 SCRA 126 3. Payment of premium by check case: American Home Assurance vs Chua, 309 SCRA 250 4. Payment of premium by installments Case: Mercantile Insurance vs Felipe Ysmael Jr; 169 SCRA 66; UCPB General Insurance vs Masagana Telamart 308 SCRA 259; UCPB Genera Insurance vs Masagana Telamart, GR no. 137172, 4 April 2001 5. Effect of payments of premium through agent case: South Sea Surety vs CA 244 SCRA 744 (1995) 6. Exceptions to section 77 Rule that premium must be paid case: south sea surety vs CA, 244 SCRA 744 (1995); Tibay vs CA, 257 SCRA 126 F. Period of Prescription (sec.63, 384) - case: Travellers Insurance vs CA, 272 SCRA 536; Jacqueline Jimenez Vda. De Gabriel vs CA, GR no. 103883, Nov. 4, 1996 Part IV DOUBLE INSURANCE (sec.93) REINSURANCE (SEC. 95) effects of double insurance (sec.94) case: Geagonia vs CA, 241 SCRA 152 (1995) OVER INSURANCE PART V LOSS a. Terms defined loss, approximate cause b. Loss for which insurer liable c. Loss for which insurer not liable Claims Settlement and Subrogation a. Notice and Proof of Loss b. Guidelines on Claims Settlement 1) Unfair Claims Settlement; Sanctions

2) Prescription of Action 3) Subrogation PART VI Particular Insurance A. MARITIME insurance (sec.99-166) 1. Coverage of marine insurance 2. Special marine insurance contracts a. Insurance against all risks b. Inchamaree clause 3. Insurable interest in marine insurance 4. Concealment 5. Warranties Philamgen vs CA, 273 SCRA 262 (1997) 6. Loss B. Fire Insurance (sec. 167-173,ICP) 1. Definition 2. Alteration in use or in condition 3. Measure of indemnity 4. Other insurances C. Casualty Insurance (Sec.174) 1. Definition 2. Examples 3. Compulsory Motor Vehicle Liability a. Method of coverage b. Vehicles covered c. Non-fault clause 1. Period of filing claim and action to recover damages 2. Applicability 3. Expired drivers license as affecting recovery 4. Effect of insurance paid to injured passenger D. Life insurance 1. Definition 2. Kinds 3. Amount of Insurance 4. The Beneficiary 5. Effect of Death of Insured Through: a. Suicide b. Killing of insured by beneficiary E. Group Insurance Reference: 1. Codal, Commercial Laws of the Philippines vol. I 2. De Leon, The Insurance code of the Philippines, annotated, 2009 edition 3. Martin, Insurance law and other special laws, vol. 11