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Name Year Facts
Source of Philippine Insurance Law
Ang Giok Chip 1931 Ang Giok Chip owns a warehouse.
v. Contents were insured with 3 ICs.
Springfield Fire & Marine Ins. Warehouse was destroyed by fire.
Petitioner filed an action to recover.
Warranty: (rider) no hazardous material
be stored in the building.
Republic 2006 RTC held Del Monte liable for the balance
v. of Vilfranǯs service contracts.
Del Monte Motors Inc. Counterbond was posted by Vilfran and
issued by Cisco. Cisco allege that it did
not issue a bond, thus, it is not valid and
enforceable.
Issue: WON security deposit or
garnishment may be levied or garnished
in favor of only one insured.
0here Contract is ambiguous, doubtful or silent
Del Rosario 1963 Insurer issued personal accident on life
v. of petitionerǯs son. Part of the policy
Equitable Ins. & Casualty Co. provides that drowning (except as
consequence of shipwreck/disablement
in which insured is a passenger) is not
covered. However a rider contained that
exemption clause is waived.
Taurus Taxi 1968 Driver of petitioner was involved in an
v. accident. A commercial vehicle
Capital Ins. & Surety Co. comprehensive policy was issued in
favor of petitioner.
Policy: should not be entitled to
indemnity under any other policy.
WCA: employee suffering injury is
compensated
Held
Express warranty must:
1.? Contained in policy itself
2.? Another instrument, signed, and
referred to in the policy
-? No authority from courts exactly
like this case
A. 203 of Insurance Code
DzNo judgment creditor or other claimant
shall have the right to levy any of the
securities of the insurer held on deposit
pursuant to the requirement of the
Commissionerdz
Law states that security deposit shall be:
1. Answerable for all obligation, 2. At all
time free from liens and 3. Exempt from
levy by claimant.
No specific amount to be paid for death
by drowning.
Insured has little participation in the
contract, in drafting terms and
conditions.
Social security act and workmenǯs
compensation may be recovered
simultaneously.
Doctrine
Phil. Law was taken verbatim from
law of California. Thus, the court
should follow in fundamental
points, at least, the construction
placed by California courts on a
California Law.
Insurance Code is patterned after
that of California. Court may rely
on jurisprudence from California.
Insurance act Ȃ 1915 (copied
almost verbatim from California
Insurance Act)
1974 I.Code Ȃ incorporate most of
the provisions from the I. Act.
1978 I.Code Ȃ rendered obsolete
some fo the provisions but
substantial portion still from
I.Act.
Where 2 interpretations, equally
fair, of languages used in an
insurance policy may be made that
which allows the greater
indemnity shall prevail.
Court should regard with extreme
jealousy limitations of liability in
insurance policies and construe
them in such a way as to preclude
the insurer from non-compliance
with his obligation.

Villacorta 1980 Comprehensive motor car insurance Main purpose of authorized driver Contract of adhesion calls for
v. Theft clause clause is that person other than the greater strictness and vigilance on
Insurance Commission Car was taken from custody of Sunday insured owner authorized must be duly part of the court of justice with a
Machine Works by employees of the car licensed. view of protecting the weaker
shop. party from abuse or prevent their
becoming traps of the unwary.
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Assoc. of Baptists for World 1983 Chevrolet carry all No need for prior conviction.
Evangelism Comprehensive car policy When taken without consent or
v. -? Displayed for sale knowledge of owner = nature of theft
Fieldmanǯs Ins. Co. Inc. -? Taken for a joy ride and figured in
an accident by bumping into an
electric post
American Home Assurace Co. 2001 Coconut oil milling/refining Building that was intended was the new Greater liberality to give effect to
v. Fire insurance taken on new and old mill mill. Absurd that insured will protect the insurance contract.
Tantuco Enterprises Fire broke out and consumed the new. the old which was already covered and
DOUBT: boundaries described on new left uncovered the new.
policy refer to the old mill
Zenith Ins. Co. 1990 Car figured in an accident. No basis for deduction No mention = resolved in favor of
v. There was deduction of deductible the insured
CA franchise for 20% depreciation which
was NOT WRITTEN in the policy.
0here terms are clear
Misamis Lumber Corp. 1966 Ford Falcon motor car Limit = 150 can be recovered. Recourse to legal hermeneutics
v. Limits of liability = authorized repair (150) is not called for. Policy is clear
Capital Dev. & Surety Co. Car hit hollow block and was broken. It was towed and specific and leaves no room
and repaired by another for 302. for interpretation.
Union Mfg. Co. Inc. 1972 Other insurance clause. There was a violation.
v. Loan from Republic Bank. It requires a mortgage and CANNOT RECOVER
Phil. Guaranty Co. an insurance. It was insured for 500,000 and renewed
by the Bank.
Fire occurred.
Ty 1961 Insured himself with 18 insurance companies for CANNOT RECOVER Agreement is law between the
v. personal accident policies. Express, clear and specific contracting parties.
First National Surety & Fire broke in factory and he insured his hand. that only amputation can be
Assurance Co. Loss: either hand: 650 recovered.
Loss = amputation through bones.
Ang 1961 Dried goods in building occupied by (P). store was CANNOT RECOVER
v. destroyed by fire. No provision that action must
Fulton Fire Insurance Policy: did not commence action in 12mos = forfeited be filed in court.
Apr. 18 1956 = denied/rejected Filing action against the agent
May 5, 1958 = commence action did not toll the period.
Perla Compania de Seguros 1990 Mazda bus NOT LIABLE The terms of the contract
v. Bus figured in an accident. Passenger sued bus owner made without written notice constitute the measure of the
CA for damages. Damages were awarded by TC to to it, the same being insurerǯs liability and
passenger; hence owner filed complaint against specifically required under compliance therewith is a
Insurance company praying that latter be ordered to the contract. condition precedent to the
pay the damages awarded to passenger. Owner also insuredǯs right of recovery from
paid three other passengers P4,000 each without the insurer.
written consent of Insurance Company.
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ëodes of delivery of policy
Lucero Vda. De Sindayen 1935 Arturo took out a life insurance policy on his life. He made application BINDING The delivery of the policy to
v. (with payment for first premium) through an agent and it was agreed the insured by an agent of
Insular Life Co. with the agent that the policy, when and if issued, should be delivered to company who is authorized
his aunt with whom Arturo left a certain sum to complete the payment of to make delivery or
first annual premium. withhold delivery (with
December 1- Company accepted application and mailed the policy to DISCRETION) is the final
agent for delivery to insured. act which binds the insurer
January 15- Arturo found out that he was suffering from acute nephritis and the insured, in the
and uremia. absence of fraud or other
January 11- Company mailed policy. legal ground for rescission.
January 16- Policy recived by agent. The fact that the agent was
January 18- Agent delivered policy to Aunt upon payment of balance of negligent does not operate
first year premium Agent asked Aunt if nephew was in good health against the insured.
and she replied she believed so because she had no information
that he was sick and agent thereupon delivered policy to Aunt.
January 19- Arturo died.
Insurer
White Gold Marine 2005 White Gold insured its vessel from MUST SECURE A LICENSE TEST: nature of promise, act
v. Steamship mutual underwriting assoc. It Mutual insurance agency Ȃ cooperative required to be performed and the
Pioneer Ins. was issued a certificate of entry and enterprise where members are both the exact nature of the agreement in
acceptance and receipts. Insured failed to insurer and the insured. the light of the occurrence,
fully pay its accounts. Insurer refused to contingency or circumstances
renew the coverage. Insurer filed case for under which the performance is a
collection of amt of money. requisite and NOT by what it is
called.
Are insurance agents parties to or liable under insurance contract?
Salonga 1951 US insurer entered insurance agreement NO LIABILITY Contract of insurance entered to
v. with Gamboa to insure one case or rayon it is not a party to the contract and has by principal is not binding upon
Warner, Barnes, Co. yardage which Gamboa shipped from US not taken part, directly or indirectly, in agent.
to Manila. There was a shortage in the the contract. The actions should have
shipment, hence Gamboa filed claim for been brought against the principal.
damages with Philippine agent of US
insurer.

Smith Bell 1997 Importer insured shipment of goods with
v. US insurer. The policy had note that
CA DzClaim, if any, payable in US currency at
Manila, and with Smith, Bell & Co,
stamped as ǮClaim Agentǯ.dz Some of the
shipment were in bad condition, hence a
claim was made against Smith, Bell & Co.
NOT LIABLE Contracts are binding only upon
A resident agent as representative of the the parties, assigns and heirs who
foreign insurance company is tasked execute them.
only to receive legal process on behalf of Solidary liability must be
principal and not to answer personally expressed not implied.
for any insurance claims.
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Pandiman Phils. 2005 Deceased was hired by foreign company, NOT LIABLE
V. through its local manning agent, as chief SC held PPI to be mere local
Marine Manning Corp. cook on board a shipping vessel. The correspondent as nothing in the record
vessel and the crew were insured with a shows that it took part in negotiations.
PRTOTECTION AND INDEMNITY CLUB, Even if agent, under the principle of
of which owner of vessel is member. relativity of contracts.
Deceased suffered heart attack and died.
Wife of deceased filed claim with the
local insurance agent (PPI) of P&I Club.
PPI claims it is not an insurance agent
but a mere local correspondent.

Insured
Fil. Cia. De Seguros 1951 Parties entered into a fire policy covering PUBLIC ENEMY! TEST: character or citizenship of
v. merchandise of respondent. During the Insurance ceased to be valid and controlling stockholder
Christern, Huenefeld & Co Japanese occupation, the building and enforceable. Elementary rules of justice
goods of respondent were burned. provide, however, that the premiums
Insurer refused to pay the proceeds as paid be returned.
the respondent was controlled by
German subjects (majority stockholders).
US declared war against Germany, which
is a Japanese ally.
Insurable interest = under legal obligation to him
Philamcare Health Systems 2002 The deceased husband of Trinos, applied for a health care coverage with Wife is claiming as creditor of
v. petitioner. Ernani suffered a heart attack and was confined at the Manila Medical husband because she paid for the
CA Center for one month. While her husband was in the hospital, Trinos tried to hospital expenses.
claim benefits under the Health Care Agreement. Petitioner denied the claim on
the basis of concealment. Respondent was unable to collect so she paid the
hospitalization expenses. Sometime after the discharge in the hospital, her
husband died.
Insurable interest of mortgagee and mortgagor
Palileo 1955 Palileo took out loan and mortgaged the The proceeds of the When a mortgagee independent of the mortgagor
v. property. Cosio took out insurance on the insurance should be , insures mortgaged property in his own name
Cosio property. delivered to Cosio but and for his own interest, he is entitled to the
The building was destroyed by fire. her claim against Palileo insurance proceeds in case of loss but in such
Palileo wanted the insurance proceeds to shall be considered as case, he is not allowed to retain his claim against
be credited to pay for her obligation. assigned to the the mortgagor but it passes by subrogation to the
insurance company who insurer, to the extent of the insurance money
is deemed subrogated to paid.
the rights of Cosio to the
extent of the money paid
as indemnity.
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Geagonia 1995 Normanǯs mart NO DOUBLE INSURANCE Mortgagor and mortgagee have each an
v. Owner took out insurance with condition independent insurable interest and make take out
CA that he shall give notice to the company separate policy covering his interest
any insurance effected or may
subsequently be effected, otherwise it
will be forfeited.

Insurable interest = under legal obligation to him

Eguaras 1916 Another person was substituted during VOID A contract of insurance is fraudulent when the consent of the
v. medical examination and in signing the insurance company was obtained by means of deceitful, insidious
Great Eastern Life Assurance documents. machinations or false statements, even though such do not
Corp. constitute estafa or any other criminal subject to the penal law
Argente 1928 Insured died of cerebral apoplexy. When VOID The basis of the rule vitiating the contract in case of concealment
v. asked: is that it misleads or deceives the insurer into accepting the risk,
West Coast Life Alcohol: Beer only. (when in fact he was or accepting it at the rate of premium agreed upon. The insurer,
an alcoholic, manic depressive psyhosos relying upon the belief that the assured will disclose every
and psycho-neurosis) material within his actual or presumed knowledge, is misled into a
-? Not treated within last 5 years belief that the circumstance withheld does not exist, and he is
-? Not consulted physican re thereby induced to estimate the risk upon a false basis that it does
brain/nervous system not exist.

Musngi 1935 DzNever been treateddz VOID The determination of the point whether there has or has not been
v. Truth: he was treated on various dates a material concealment must rest largely in all cases upon the
West Coast Life for several diseases. form of questions propounded and the exact terms of the contract.

Qua Chee Gan 1955 Bodega as storage of copra/hemp VALID It is usually held that where the insurer, at the time of the issuance
v. Warrant: fire hydrant/150ft of a policy of insurance, has knowledge of existing facts which, if
Law Union & Rocks -? Thereǯs only 2 insisted on, would invalidate the contract from its very inception,
No hazardous materials: Dzoildz such knowledge constitutes a waiver of conditions in the contract
-? Thereǯs gasoline inconsistent with the facts, and the insurer is stopped thereafter
from asserting the breach of such conditions.
Yu Pang 1959 Insured answered NO when asked if he VOID In an action on a life insurance policy where the evidence
v. had specific diseases. conclusively shows that the answers to questions concerning
CA He died of infiltrating medullary diseases were untrue, the truth or falsity of the answers become
carcinoma. the determining factor. If the policy was procured by fraudulent
representations, the contract of insurance apparently set forth
therein was never legally existent. It can fairly be assumed that
had the true facts been disclosed by the assured, the insurance
would never have been granted.
Fieldmenǯs Ins. 1968 Insured was man of scant education. He VALID Where inequitable conduct is shown by an insurance firm, it is
V. was made to believe that he can secure "estopped from enforcing forfeitures in its favor, in order to
Vda. De Songco common carriage insurance although his forestall fraud or imposition on the insured.
jeep is only for private use.
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Great Pacific Life 1979 Binding deposit receipt. VOID Concealment exists where the assured had knowledge of a fact
v. Child was mongoloid. ® insist on taking material to the risk, and honesty, good faith, and fair dealing
CA out insurance on life of such child. requires that he should communicate it to the assured, but he
designedly and intentionally withholds the same.
Ng Gan Zee 1983 Insured had tumor. When asked if he had VALID Where, upon the face of the application, a question appears to be
v. cancer, he said that he only had not answered at all or to be imperfectly answered, and the
Asian Crusader Life operation for peptic ulcer. insurers issue a policy without any further inquiry, they waive the
imperfection of the answer and render the omission to answer
more fully immaterial.
Canilang 1993 concealment of sinustachycardia or VOID Materiality of the information does not depend upon the state of
v. abnormally fast beating of the heart, died mind. Neither does materiality depend upon the actual or physical
CA of heart failure events, which ensue. Materiality relates rather to the "probable
and reasonable influence of the facts" upon the party to whom the
Non-medical insurance Ȃ no med exam, communication should have been made, in assessing the risk
all the more that it is necessary to involved in making or omitting to make further inquiries and in
disclose the necessary information! accepting the application for insurance; that "probable and
reasonable influence of the facts" concealed must, of course, be
determined objectively, by the judge ultimately.
Sunlife Assurance 1995 concealment of past urinalysis, VOID The waiver of a non-medical exam in a non-medical insurance
v. senograph, hematology, 2 weeks later contract renders even more material the information required of
CA died in a plane crash the applicant concerning previous condition of health and
diseases suffered.
Depresentation
Tan Chay 1927 Tan allegedly applied for an insurance policy in They never entered into a contract of insurance. Fraud or deceit
v. collusion with the agent and doctor of the Thus, no contract to rescind and Sec. 47 does not is not barred by
West Coast Life insurance company. It was falsely represented apply. Minds of the party never met and never the
that Tan was a single and a merchant and that agreed upon the terms and conditions of the incontestable
the petitioner was his nephew (made the contract. Rescission presupposes the existence of a clause
beneficiary) when in fact he was married, a contract to rescind. Also, a defense to an action to
mere employee and the petitioner was not his recover insurance that the policy was obtained
nephew. The doctor made it appear that he had through false representation, fraud and deceit is not
not used any drugs when in fact he was a drug in the nature of an action to rescind and hence is not
addict. He later died of pulmonary tuberculosis barred by Sec. 47 of the Insurance Act.
Tan 1989 Tan applied for a life insurance policy of P80 The Dzincontestability clausedz precludes the insurer from raising the
v. 000. He died of hepatoma. In letter, insurer defenses of false representations or concealment of material facts
CA denied the claim and rescinded the policy by insofar as health and previous diseases are concerned if the insurance
reason of alleged misrepresentation and has been in force for at least 2 years during the insuredǯs lifetime. The
concealment of material facts made by the phrase Dzduring the insuredǯs lifetimedz found in Sec. 48 simply means
deceased. Petitioners contend that the insurer that the policy is no longer considered in force after the insurance has
no longer had the right to rescind the contract of died. The key phrase is Dzfor a period of 2 yearsdz. The policy was thus in
insurance as rescission must allegedly be don force for a period of only 1 year and 5 mos. Considering that insured
during the lifetime of the insured within 2 years died before 2-year period lapsed, respondent company is not, therefore
and prior to the commencement of action. barred from proving that the policy is void.
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Storage of prohibited articles
Bachrach 1910 Furniture store was insured. VALID The paint and varnish shop is incidental to the business.
v. Storage of gasoline was prohibited (can No express prohibition. If insurer intended to prohibit such, it
British American Assurance only store up to 10 gallons) shouldǯve plainly expressed it in the policy.
Paint and varnish shop was also
maintained.
Other insurance policy
Pioneer Ins. & Surety Corp 1974 ® owned a store in a 2 storey building VOID Procurement of additional insurance without consent of the
v. where she sold shopping bags and insurer renders the policy void.
Yap footwear. No waiver because such should be express.
In the policy, it is state that benefits will
be forfeited if there are other insurance.