Universidad De Manila COLLEGE OF LAW

INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER ONE
INTRODUCTION TO PHILIPPINE INSURANCE LAW
A. Definition. A contract of insurance is an agreement whereby one (insurer) undertakes
for a consideration (premium) to indemnify another (insured) against loss, damage or liability
arising from an unknown or contingent event. 1

B. Insurance Business; Elements of a contract of insurance:

1. Insurable interest
2. Risk of loss
3. Assumption of risk of loss by the insurer
4. Such assumption of risk is part of a general scheme to distribute actual losses among the large
group or substantial number of persons bearing similar risks
5. Payment of premium

Cases:
o GULF RESORTS, INC. V. PHILIPPINE CHARTER INSURANCE CORP., G.R. NO. 156167,
MAY 16, 2005
o WHITE GOLD MARINE SERVICES, INC. V. PIONEER INSURANCE AND SURETY CORP.,
G.R. NO. 154514, JULY 28, 2005
o REPUBLIC VS. DEL MONTE MOTORS, INC., G.R. NO. 156956, OCTOBER 9, 2006.

C. Insurance versus Health Maintenance Organizations (HMOs)

Cases:
o PHILIPPINE HEALTH CARE PROVIDERS, INC. V. COMMISSIONER OF INTERNAL
REVENUE, G.R. NO. 167330, JUNE 12, 2008
o PHILIPPINE HEALTH CARE PROVIDERS, INC. V. COMMISSIONER OF INTERNAL
REVENUE, G.R. NO. 167330, SEPTEMBER 18, 2009

D. Nature and characteristics of an insurance contract:

1. Consensual (Art. 1319)
2. Voluntary (Art. 1306, 1308)
3. Aleatory (Art. 2010)
4. Conditional
5. Contract of indemnity, except life and accident insurance where the result is death
6. Personal contract. General rule, the insured cannot assign his right under a property policy to
others before the happening of the loss. Exemption: (a) if sale is with the consent of the insurer,
(b) by express stipulation of the parties.
7. Contract of adhesion; “Fine Print Rule” in construction of insurance contract
8. Uberrimae Fides Contract (contract of utmost good faith)

Case:
o PHILAMCARE HEALTH SYSTERMS INC VS. COURT OF APPEALS, GR NO. 125678,
MARCH 18, 2002

E. Applicability of the Civil Code, other relevant laws

1. Other provisions
- Art. 739, Civil Code – prohibited donations2
- Art. 43, 63 Family Code – effect of decree of legal separation to the designation of
irrevocable beneficiary3

2. Doctrine of Subrogation (Art. 2207, Civil Code)

Cases:
o DELSAN VS. CA, G.R. NO. 127897. NOVEMBER 15, 2001
o VECTOR SHIPPING CORPORATION VS. AMERICAN HOME ASSURANCE COMPANY,
G.R. NO. 159213, JULY 3, 2013.
o ASIAN TERMINALS, INC. VS. FIRST LEPANTO-TAISHO INSURANCE CORPORATION,
G.R. NO. 185964, JUNE 16, 2014.
o F.F. CRUZ AND CO., INC., VS. THE COURT OF APPEALS ET AL, G.R. NO. L-52732,
AUGUST 29, 1988.
o MANILA MAHOGANY MANUFACTURING CORPORATION vs. COURT OF APPEALS AND
ZENITH INSURANCE CORPORATION, G.R. No. L-52756, October 12, 1987

1
Sec. 2(a), RA 10607.
2
To be discussed further under Chapter Two
3
To be discussed further under Chapter Two
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER TWO
THE CONTRACT OF INSURANCE
(CHAPTER 1, RA 10607)
A. What may be insured (Sec. 3-5, RA 10607)
a) Married individuals
b) Minors
c) Lottery; Insurance distinguished from gambling

B. Parties to the contract of insurance

Cases:
o ETERNAL GARDENS MEMORIAL PARK CORP. V. THE PHILIPPINE AMERICAN LIFE
INSURANCE COMPANY, G.R. NO. 166245, APRIL 9, 2008
o GREAT PACIFIC LIFE ASSURANCE V. COURT OF APPEALS, G.R. NO. 113899, OCTOBER 13,
1999
1. Insurer (Sec. 6, RA 10607)
2. Insured (Sec. 7, RA 10607)

(a) Public enemy

Cases:
o FILIPINAS COMPAÑA DE SEGUROS VS. CHRISTERN, HUENEFELD AND CO., INC., G.R.NO. L-
2294, MAY 25, 1951
o CONSTANTINO V. ASIA LIFE INSURANCE COMPANY, G.R. NO. 1669, AUGUST 31, 1950
(b) Mortgagor, mortgagee (Sec. 8, 9)
3. Beneficiary

F. Insurable interest (Secs. 10-25, RA 10607)

1. Life Insurance (Sec. 10, RA 10607). Every person has an insurable interest in
the life and health:
(a) Of himself, of his spouse and of his children;
(b) Of any person on whom he depends wholly or in part for education or
support, or in whom he has a pecuniary interest;
(c) Of any person under a legal obligation to him for the payment of money,
or respecting property or services, of which death or illness might delay
or prevent the performance; and
(d) Of any person upon whose life any estate or interest vested in him
depends.

2. Property Insurance (Sec. 13, 14, RA 10607). An insurable interest in property

may consist in:
(a) An existing interest;
(b) An inchoate interest founded on an existing interest; or
(c) An expectancy, coupled with an existing interest in that out of which the
expectancy arises.

2.1 Insurable interest of mortgagor and mortgagee

3. Time when insurable interest must exist (Sec. 19, RA 10607).

(a) General rule: An interest in property insured must exist:

(1) When the insurance takes effect, and
(2) When the loss occurs, but need not exist in the meantime
Exception:
(1) In life, health, and accident insurance (Sec. 20, RA 10607)
(2) A change of interest in the thing insured after the occurrence of an
injury which results in a loss (Sec. 21, RA 10607)
(3) A change of interest in one or more of several things separately
insured by one policy (Sec. 22, RA 10607)
(4) A change of interest by will or succession on the death of the
insured (Sec. 23, RA 10607)
(5) A transfer of interest by one of several partners, joint owners, or
owners in common, who are jointly insured, to the others (Sec. 24,
RA 10607)
(6) When a policy is so framed that it will inure to the benefit of
whomsoever, during the continuance of the risk, may become the
owner of the thing insured (Sec. 57, RA 10607)
(7) When there is an express prohibition against alienation in the
policy, in case of alienation, the contract of insurance is not merely
suspended but is avoided (Art. 1306, Civil Code; Sec. 24, RA
10607)
Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

(b) An interest in the life or health of a person insured must exist:

(1) When the insurance takes effect, but need not exist thereafter
or when the loss occurs

4. Designation of Beneficiary (Sec.11, RA 10607). As a rule, the owner of the

policy may change the beneficiary designated in the policy.

(a) Exception: if such right was expressly waived in the policy like when the
designation of beneficiary was “irrevocable”

(b) Exception to the exception: Art. 739, Civil Code, and Art. 43, 63 Family Code

CASES:
o LALICAN V. INSULAR LIFE ASSURANCE CO. LTD., 597 SCRA 159 AUGUST 25, 2009
o GERCIO V. SUN LIFE ASSURANCE CO. OF CANADA, 48 PHIL 53, SEPTEMBER 28,
1925
o PHILIPPINE AMERICAN LIFE INSURANCE COMPANY V. PINEDA, 175 SCRA 416, JULY
19, 1989
o HEIRS OF LORETO C. MARAMAG V. MARAMAG, 588 SCRA 774, JUNE 5, 2009
o GAISANO CAGAYAN V. INSURANCE COMPANY OF NORTHERN AMERICA, 490 SCRA
286, JUNE 8, 2006
o FILIPINO MERCHANTS INSURANCE CO. V. CA, 179 SCRA 698, NOVEMBER 28, 1989-
1991 BAR
o ONG LIM SING V. FEB LEASING, 524 SCRA 333, JUNE 8, 2007
o GAISANO CAGAYAN V. INSURANCE COMPANY OF NORTHERN AMERICA, 490 SCRA
286, JUNE 8, 2006
o CHA V. CA, 277 SCRA 690, AUGUST 18, 1997-2009 BAR
o SAN MIGUEL BREWERY V. LAW UNION & ROCK INSURANCE CO. (LTD.), 40 PHIL 674,
JANUARY 19, 1920

o SSS VS. DAVAC, 17 SCRA 863 (1966)

o CONSUERGA VS. GSIS, 37 SCRA 315 (1971)
o TOLENTINO VS. FILIPINAS LIFE INSURANCE CO. INC., I.C. CASE NO. 162, JULY 19,
1976
o GARCIA VS. HONG KONG F. & M. INS. CO., 45 PHIL. 122 (1923)
o YOUNG VS. THE MIDLAND TEXTILE INS. CO., 30 PHIL. 617
o ORIENTAL ASSURANCE CORP. VS. COURT OF APPEALS, 200 SCRA 459 (1991)
o EL ORIENTE VS. POSADAS
o TAI TONG CHUA VS. INSURANCE COMMISSION
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER THREE
PERFECTION OF INSURANCE CONTRACT
A. Perfection of Insurance Contract
1. Application
2. Issuance of policy
3. Receipt of policy
4. Payment of premium

B. Issuance of Policy (Sec. 49-66, RA 10607)

1. Contents of an Insurance Policy (Sec. 51, RA 10607)

2. Policy vs. Contract of Insurance

3. Cover Note (Sec. 52, RA 10607)

4. Rider

5. Clause

6. Effect of failure to read the policy. Doctrine of Reasonable Expectation

7. Kinds of Policy: open, valued and running policy (Secs. 59-62, RA 10607)

8. Prescriptive Period for Commencing an Action (Sec. 63, RA 10607)

9. Grounds for Cancellation of Policy for Non-Life Insurance (Sec. 64, RA

10607)

10. Renewal of Non-Life Insurance Policy (Sec. 65, RA 10607)

Cases:
o LALICAN V. INSULAR LIFE ASSURANCE CO. LTD., 597 SCRA 159 AUGUST 25, 2009
o TANG V. CA, 90 SCRA 236, MAY 25, 1979
o JARQUE V. UNION FIRE INSURANCE CO., 56 PHIL 758, NOVEMBER 11, 1930
o PACIFIC TIMBER EXPORT CORP. V. CA, 112 SCRA 199, FEBRUARY 25, 1982
o GREAT PACIFIC LIFE ASSURANCE V. CA, 89 SCRA 543, APRIL 30, 1979
o DE LIM V. SUN LIFE ASSURANCE OF CANADA, 41 PHIL 263, NOVEMBER 29, 1920
o DEVELOPMENT INSURANCE CORP V. IAC, 143 SCRA 62, JULY 16, 1986
o GREAT PACIFIC LIFE ASSURANCE V. CA, 316 SCRA 677, OCTOBER 13, 1999
o SUN INSURANCE OFFICE, LTD. V. CA, 195 SCRA 193, MATCH 13, 1991
o AGRICULTURAL CREDIT & COOPERATIVE FINANCING ADMINISTRATION (ACCFA) V. ALPHA
INSURANCE & SURETY CO., INC., 24 SCRA 151, JULY 29, 1968
o EAGLE STAR INSURANCE CO., LTD. V. CHIA YU, 96 PHIL 696, MARCH 31, 1955
o MALAYAN INSURANCE CO., INC. V. ARNALDO, OCTOBER 12, 1987
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER FOUR
PAYMENT OF PREMIUM
(Sec. 77-84, RA 10607)

A. General Rule: A policy is not valid and binding if the insurance premium
has not been paid. Exception:
a) In life and industrial life insurance policy when there is grace period
b) When there is a broker and agency agreement to that effect with 90 day extension
c) When there is acknowledgment in the policy of receipt of premium (Sec. 79, RA
10607)
d) When the payment of premium is by installment and a partial payment has been
made
e) When credit extension has been provided
f) Estoppel

B. Instances when the ensured may recover the premiums paid:

1. When no part was exposed to any of the perils insured against (Sec. 80)
2. In insurance for definite period and the policy was surrendered before its
termination
3. In voidable insurance contracts which were subsequently annulled (Sec. 82)
4. In the insurance is voidable because of the existence of facts which the insured is
ignorant about
5. When the insured defaulted which does not amount to actual fraud
6. Overinsurance (Sec. 83)
7. Rescission

C. Cover Note vs. Binding Receipt

Cases:
o MAKATI TUSCANY CONDOMINIUM CORP. V. CA, 215 SCRA 462, NOVEMBER 6, 1992
o UCPB V. MASAGANA TELEMART, 356 SCRA 307, ., G.R. NO. 137172, APRIL 4, 2001
o GSIS V. PRUDENTIAL GUARANTEE & ASSURANCE INC., G.R. NO. NOS. 165585 & 176982,
NOVEMBER 20, 2013
o AMERICAN HOME ASSURANCE CO V. CHUA, JUNE 28, 1999
o FILIPINAS COMPANIA DE SEGUROS V. CHRISTERN HUENFIELD & CO, INC., 89 PHIL 54, MAY
24, 1951
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER FIVE
DEVICES USED FOR ASCERTAINING AND
CONTROLLING RISK AND LOSS
A. Concealment (Sec. 26-35, RA 10607)
1. Concealment defined. A neglect to communicate that which a party
knows and ought to communicate, is called a concealment (Sec. 26,
RA 10607).
2. Effect. A concealment whether intentional or unintentional entitles
the injured party to rescind a contract of insurance (Sec. 26, RA
10607). An intentional and fraudulent omission, on the part of one
insured, to communicate information of matters proving or tending to
prove the falsity of a warranty, entitles the insurer to rescind (Sec.
29, RA 10607).
3. General rule: Each party to a contract of insurance must
communicate to the other, in good faith, all facts within his
knowledge which are material to the contract and as to which he
makes no warranty, and which the other has not the means of
ascertaining (Sec. 28, RA 10607). Exception: Neither party to a
contract of insurance is bound to communicate information of the
matters following, except in answer to the inquiries of the other (Sec.
30, RA 10607):
a) Those which the other knows;
b) Those which, in the exercise of ordinary care, the
other ought to know, and of which the former has no
reason to suppose him ignorant;
c) Those of which the other waives communication;
d) Those which prove or tend to prove the existence of
a risk excluded by a warranty, and which are not
otherwise material; and
e) Those which relate to a risk excepted from the policy
and which are not otherwise material.

Cases:
o NG GAN ZEE V. ASIAN CRUSADER LIFE ASSN. CORP., 122 SCRA 461, G.R. NO. 30685, MAY 30,
1983
o VDA. DE CANILANG V. CA, 223 SCRA 443, G.R. NO. 92492, JUNE 17, 1993
o SUNLIFE ASSURANCE OF CANADA V. CA, G.R. NO. 105135, JUNE 22, 1995
o MALAYAN INSURANCE CO., INC. V. PAP CO., LTD., G.R. NO. 200784, AUGUST 7, 2013
o FLORENDO V. PHILAM PLANS, INC., G.R. NO. 186983, FEBRUARY 22, 2012
o GREPALIFE V. CA, 89 SCRA 543, APRIL 30, 1979
o SATURNINO V. PHILAMLIFE, 7 SCRA 316, G.R. NO. 16163, FEBRUARY 28, 1963
o PHILAMCARE V. CA, 379 SCRA 356, MARCH 18, 2002
o GREPALIFE V. CA, 303 SCRA 113, OCTOBER 13, 1999
o EDILLON V. MANILA BANKERS LIFE INSURANCE CORP., G.R. NO. 34200, SEPTEMBER 30,
1982
o PHILAMCARE HEALTH SYSTEMS, INC. V. COURT OF APPEALS, G.R. NO. 125678, MARCH 18,
2002

B. Condition.

C. Representation (Sec. 36-48, RA 10607)

1. Concealment vs. Representation

2. Warranty vs. Representation

3. Exception vs. Warranty

Incontestability Clause. Whenever a right to rescind a contract of insurance is

given to the insurer by any provision of this chapter, such right must be exercised
previous to the commencement of an action on the contract.

After a policy of life insurance made payable on the death of the insured shall
have been in force during the lifetime of the insured for a period of two (2) years
from the date of its issue or of its last reinstatement, the insurer cannot prove
that the policy is void ab initio or is rescindable by reason of the fraudulent
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

concealment or misrepresentation of the insured or his agent (Sec. 48, RA

10607).

Cases:
o THE INSULAR LIFE ASSURANCE COMPANY, LTD. V. FELICIANO, G.R. NO. 47593, DECEMBER
29, 1943
o SATURNINO V. THE PHILIPPINE AMERICAN LIFE INSURANCE COMPANY, G.R. NO. 16163,
FEBRUARY 28, 1963
o EDILLON V. MANILA BANKERS LIFE INSURANCE CORPORATION, G.R. NO. 34200,
SEPTEMBER 30, 1982
o SPS. HARDING VS. COMMERCIAL UNION ASSURANCE CO., 38 PHIL. 469, AUGUST 10, 1918
o ARGENTE VS. WEST COAST LIFE INSURANCE CO., 51 PHIL. 725, MARCH 19, 1928
o TAN CHAY HENG VS. WEST COAST LIFE INSURANCE CO., 51 PHIL. 80, NOVEMBER 21, 1927
o MANILA BANKERS LIFE INSURANCE CORP. VS. ABAN, G.R. NO. 175666, JUNE 29, 2013

D. Exceptions

E. Warranties (Sec. 67-76, RA 10607)

1. Kinds of Warranties

Cases:
o PRUDENTIAL GUARANTEE & ASSURANCE, INC. V. TRANS-ASIA SHIPPING LINES, INC., 491
SCRA 411, JUNE 20, 1996
o YOUNG V. MIDLAND TEXTILE INSURANCE CO., 30 PHIL 617, MARCH 31, 1915
o MALAYAN INSURANCE CO., INC. V. PAP CO., LTD., G.R. NO. 200784, AUGUST 7, 2013
o BACHRACH V. BRITISH AMERICAN ASSURANCE CO., 17 PHIL 555, DECEMBER 20, 1910
o QUA CHEE GAN V. LAW UNION & ROCK INSURANCE CO., LTD., 98 PHIL 85, DECEMBER 17,
1955
o UNION MANUFACTURING CO., INC. V. PHILIPPINE GUARANTY CO., INC., 47 SCRA 276,
OCTOBER 30, 1972
o NEW LIFE ENTERPRISES V. CA, 207 SCRA 669, MARCH 31, 1992
o UNITED MERCHANTS CORP. V. COUNTRY BANKERS INSURANCE INC., G.R. NO. 198588, JULY
11, 2012
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER SIX
LOSS, NOTICE OF LOSS AND FILING OF CLAIMS

A. Loss (Sec. 85 – 87, RA 10607)

1. Proximate Case (Sec. 86, RA 10607)
2. Hostile Fire vs. Friendly Fire
3. When a thing insured was damaged while being rescued against a peril that would
otherwise have cause the loss (Sec. 87, RA 10607)
4. Loss by willful act or connivance; Loss caused by negligence of the insured (Sec. 89, RA
10607)

o UNITED MERCHANTS CORP. V. COUNTRY BANKERS INSURANCE CORP., G.R. NO. 198588,
JULY 11, 2012
o DBP POOL OF ACCREDITED INSURANCE COMPANIES VS. RMN, 480 SCRA 314, JANUARY 27,
2006
o RUSSEL VS. GERMAN FIRE INSURANCE CO., 11 N.W. 400
o PARIS-MANILA PERFUME CO. VS. PHOENIX ASSURANCE COMPANY, 49 PHIL. 753,
DECEMBER 17, 1926
o FGU INSURANCE CORP. VS. CA, 454 SCRA 337, MARCH 31, 2005
o WILLIAMS VS. NEW ENGLAND INSURANCE CO., 3 CLIFF. 244, FED. CAS. NO. 17,731
o FGU INSURANCE CORP. VS. CA, 454 SCRA 337, MARCH 31, 2005

B. Notice of Loss (Sec. 88 – 92, RA 10607, RA 10607)

1. Defects in notice of loss or preliminary proof; waiver (Sec. 92, RA 10607)

Cases:
Effect of fraudulent claim
o UNITED MERCHANTS CORP. VS. COUNTRY BANKERS INSURANCE INC., G.R. NO. 198588,
JULY 11, 2012
o YU CUA VS. SOUTH BRITISH INSURANCE CO., OCTOBER 27, 1920, 41 PHIL. 134
o GO LU VS. YORKSHIRE INSURANCE CO., JULY 25, 1922, 43 PHIL. 633
o TUASON VS. NORTH CHINA INSURANCE CO., DECEMBER 16, 1924, 47 PHIL. 14
o SHARRUF & CO., VS. BALOISE FIRE INSURANCE CO., MARCH 30, 1937, 64 PHIL 258
o YU BAN CHUAN VS. FIELDMEN’S INSURANCE, CO., INC., JUNE 29, 1965, 121 PHIL. 1275
o VERENDIA VS. CA, 22 JANUARY 1993, 217 SCRA 417
o UY HU & CO. VS. THE PRUDENTIAL ASSURANCE CO., LTD., DECEMBER 16, 1927, 51 PHIL. 231

Waiver of defects in notice and proof of loss

o MALAYAN INSURANCE CO. VS. CRUZ ARNALDO, OCTOBER 12, 1987, 154 SCRA 675

C. Prescription
1. Sec. 397, RA 10607
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER SEVEN
DOUBLE INSURANCE, REINSURANCE

A. Double Insurance (Sec. 93 – 94, RA 10607)

1. Requisites

2. Principle of Contribution / Contribution Clause (Sec. 96, RA 10607)

Cases:
o GEAGONIA VS. CA, FEBRUARY 6, 1995, 241 SCRA 152
o MALAYAN INSURANCE CO., INC. VS. PHILIPPINES FIRST INSURANCE CO., INC., G.R. NO.
184300, JULY 11, 2012
o MALAYAN INSURANCE CO., INC. VS. PHILIPPINES FIRST INSURANCE CO., INC., G.R. NO.
184300, JULY 11, 2012

B. Reinsurance (Sec.95 – 98, RA 10607)

a) Kinds of Reinsurance
b) Policy of Insurance vs. Reinsurance
c) Double Insurance vs. Reinsurance
:
o PHILIPPINE AMERICAN INSURANCE CO. VS. AUDITOR GENERAL, JANUARY 18, 1968, 22
SCRA 135
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER EIGHT
CLASSES OF INSURANCE
(Chapter II, RA 10607)

A. Marine Insurance (Sec. 101 – 168, RA 10607)

1. Salient features:
a) Insurable Interest
b) Concealment
c) Representation
d) Implied Warranties
e) The Voyage and Deviation
f) Loss
g) Abandonment
h) Measure of Indemnity

2. Perils of the Sea vs. Perils of the Ship

3. Seaworthiness; applicability of implied warranty of seaworthiness to

cargo owners
4. General Average Loss vs. Particular Average Loss
5. Co-insurance
a) Requisites
b) Effect
6. Deviation (Sec. 125, 126, RA 10607)
7. Actual Loss vs. Constructive Loss

o ROQUE VS. IAC, G.R. NO. L-66935, NOVEMBER 11, 1985

o DELSAN TRANSPORT LINES VS. CA, 369 SCRA 24, NOVEMBER 15, 2001
o PHIL-AM GENERAL ASSURANCE CO., INC. VS. CA, G.R. NO. 116940, JUNE 11, 1997
o PAN-MALAYAN INSURANCE CORP. VS. CA, 201 SCRA 382, SEPTEMBER 5, 1991 - 1996 BAR
o PHIL. MFG. CO. VS. INSURANCE SOCIETY OF CANTON, LD., 42 PHIL 378, NOVEMBER 22, 1921
AVERAGES
o MAGSAYSAY INC. VS. AGAN, 96 PHIL 504, JANUARY 31, 1955
o ORIENTAL ASSURANCE CORP. VS. CA, 200 SCRA 459, AUGUST 9, 1991 - 1992 BAR
BAR APPLICATION: 2005, 1992, 1982
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER NINE
A. Fire Insurance (Sec. 169 – 175, RA 10607)
1. Extent of Liability
2. Alteration
o MALAYAN INSURANCE CO., INC. VS. PAP CO., LTD. G.R. NO. 200784, AUGUST 7, 2013 - 2014 BAR

B. Casualty Insurance (Sec. 176, RA 10607)

Cases:
Basic kinds
o FORTUNE MEDICARE, INC. VS. AMORIN, G.R. NO. 195872, MARCH 12, 2014

Compulsory Motor Vehicle Liability Insurance (Sections 386-402)

o SHAFER VS. JUDGE, RTC OF OLONGAPO CITY, BR. 75, 167 SCRA 386, NOVEMBER 14, 1988
o FEB LEASING AND FINANCE CORP. VS. SPOUSES BAYLON, G.R. NO. 181398, JUNE 29, 2011

Authorized driver clause

o CCC INSURANCE CORP. VS. CA, 31 SCRA 264, JANUARY 30, 1970
o TANCO, JR. VS. PHILIPPINE GUARANTY CO., 15 SCRA 313, NOVEMBER 29, 1965

Burglary and Theft Insurance

o PARAMOUNT INSURANCE CORP. VS. SPOUSES REMONDEULAZ, G.R. NO. 173773
o PERLA COMPANIA DE SEGUROS, INC. VS. CA, 208 SCRA 487, MAY 7, 1992
o VILLACORTA VS. INSURANCE COMMISSION, 100 SCRA 467, OCTOBER 28, 1980
o ASSOCIATION OF BAPTISTS FOR WORLD EVANGELISM, INC. VS. FIELDMEN’S INSURANCE CO.,
124 SCRA 618, SEPTEMBER 21, 1983
o SANTOS VS. PEOPLE, 181 SCRA 487, JANUARY 29, 1990
o PEOPLE VS. BUSTINERA, JUNE 8, 2004, 431 SCRA 284
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER TEN
A. Suretyship (Sec. 177 – 180, RA 10607)
Cases:
o NASSCO VS. TORRENTO, JUNE 26, 1967, 20 SCRA 427
o AMERICAN HOME INSURANCE CO. VS. F. F. CRUZ: AUGUST 10, 2011, 655 SCRA 248
o PHILIPPINE EXPORT AND FOREIGN LOAN GUARANTEE CORPORATION VS. V.P. EUSEBIO
CONSTRUCTION, INC., 434 SCRA 202, JULY 13, 2004

B. Life Insurance (Sec. 181 – 186, RA 10607)

Cases:
Suicide
o SUN INSURANCE OFFICE, LTD., VS. CA, 211 SCRA 554, JULY 17, 1992 – 1995 BAR
o DE LA CRUZ VS. CAPITAL INSURANCE & SURETY CO., 17 SCRA 559, JUNE 30, 1966 – 1975 BAR

C. Microinsurance (Sec. 187 – 188, RA 10607)

D. Compulsory Motor Vehicle Liability Insurance (Sec. 386 – 402,
RA 10607)
 Universidad De Manila COLLEGE OF LAW
INSURANCE
ACP MARY EILLEN F. CHINTE-CABRERA
SY 2019-2020

CHAPTER ELEVEN
A. THE BUSINESS OF INSURANCE (Sec. 190-306, RA 10607)

Claims Settlement (Sections 247-249)

Cases:
Effect of payment of insurance proceeds
o MITSUBISHI MOTORS PHILS. SALARIED EMPLOYEES UNION VS. MITSUBISHI MOTORS PHILS.,
G.R. NO. 175773, JUNE 17, 2013
o LOADSTAR SHIPPING VS. MALAYAN INSURANCE, G.R. NO. 185565, NOVEMBER 26, 2014 – 2014
BAR
o KEPPEL CEBU SHIPYARD, INC. VS. PIONEER INSURANCE AND SURETY CORPORATION, 601
SCRA 96, SEPTEMBER 25, 2009
BAR APPLICATION: 2014

B. SALES AGENCIES AND TECHNICAL SERVICES (Sec. 307-377, RA

10607)
C. SECURITY FUND (Sec. 378-385, RA 10607)
D. MUTUAL BENEFIT ASSOCIATIONS AND TRUSTS FOR
CHARITABLE USES (Sec. 403-436, RA 10607)
E.THE INSURANCE COMMISSIONER (Sec. 437-439, RA 10607)