EMILIO AGUINALDO COLLEGE

INSTITUTE OF THE LAW AND JUSTICE

INSURANCE LAW
ATTY. CARLO JOHN R. PASCUAL
1st Semester, SY 2021-22
(Friday, 5:30PM-7:30PM)

I. GENERAL PROVISIONS

A. Origin/History of Insurance: Insurance laws adopted by the Philippines

B. Organizational structure/powers/jurisdiction of the Insurance Commission

Cases:

• Capital Insurance and Surety Co. vs. Del Monte Motorworks, G.R. No.
159979, 09 December 2015.

• Philam Life vs. Ansaldo, G.R. No. 76452, 26 July 1994.

C. Definition of Insurance

1. Elements, nature and characteristics

2. Doing an insurance business

Cases:

• Philippine Health Care Providers, Inc. vs. Commissioner of Internal

• Commissioner of Internal Revenue vs. Phil. American Accident Insurance,

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 • White Gold Marine Services vs. Pioneer Insurance, G.R. No. 154514, 28
July 2005.

• Loadstar Shipping Co., Inc. vs. Malayan Insurance Co., Inc., vs. G.R. No.
185565, 26 November 2014.

• Gulf Resorts, Inc. vs. Philippine Charter Insurance Corporation, G.R No.
156167, 16 May 2005.

D. Types of Insurance

Cases:

• Fortune Medicare, Inc. vs. Amorin, G.R. No. 195872, 12 March 2014.

• Philamcare Health Systems vs. Court of Appeals, G.R. No. 125678, 18 March
2002.

E. Doctrine of Estoppel

Cases:

• Development Bank of the Philippines vs. Court of Appeals, G.R. No. L-

• UCPB General Insurance Co., Inc. vs. Masagana Telemart, G.R. No. 137172,
04 April 2001.

• Fieldmen’s vs. Songco, G.R. No. L-24833, 23 September 1968.

F. Doctrine of Ambiguity

1. As to the amount to be paid

Case:

Del Rosario vs. Equitable Insurance and Casualty Company, Inc., G.R. No.
L-16215, 29 June 1963.

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 2. As to the effectivity of the policy

Cases:

• Landicho vs. GSIS, G.R. No. L-28886, 17 March 1972.

• Eternal Gardens vs. Philamlife, G.R. No. 166245, 08 April 2008.

• Insurance Life Assurance Co., Ltd. vs. Khu, G.R. No. 195176, 18 April
2016.

3. As to the peril insured against

Cases:

• Malayan Insurance vs. Court of Appeals, G.R. No. 119599, 17 March

• Alpha Insurance vs. Castor, G.R. No. 198174, 02 September 2013.

4. As to the area insured

Cases:

• Rizal Surety vs. Court of Appeals, G.R. No. 112360, 18 July 2000.

• Gulf Resorts vs. Philippine Charter Insurance, G.R. No. 156167, 16 May
2005.

II. WHAT MAY BE INSURED

III. PARTIES TO THE CONTRACT

Cases:

• Filipinas Compania de Seguros vs. Christen, Huenfeld & Co., Inc., G.R. No.
L2294, 25 May 1951.

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 • Geagonia vs. Court of Appeals, G.R. No. 114427, 06 February 1995.

IV. INSURABLE INTEREST

1. Definition

Case:

Lalican vs. Insurable Life Assurance Co. Ltd., G.R. No. 183526, 25 August
2009.

2. Designation of Beneficiaries

Cases:

• Philippine American Life Insurance Company vs. Pineda, G.R. No. L-54216,
19 July 1989.

• Heirs of Loreto C. Maramag vs. Maramag, G.R. No. 181132, 05 June 2009.

• Cha vs. Court of Appeals, G.R. No. 124520, 18 August 1997.

3. Insurable interest in life and property

a. Distinction of insurable interest in life from property

b. Illustration of what is insurable interest

Cases:

• Filipino Merchants Insurance Co. vs. Court of Appeals, G.R. No. 85141,
28 November 1989.

• Ong Lim Sing v. FEB Leasing, G.R. No. 168115, 08 June 2007.

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 • Gaisano Cagayan vs. Insurance Company of Northern America, G.R. No.
147839, 08 June 2006.

c. When insurable interest in life and property must exist

4. Change of insurable interest

Exceptions: life insurance, automatic transfer clause

V. CONCEALMENT AND MISREPRESENTATION

1. Concealment and Misrepresentation entitles injured party to rescind

Cases:

• Sunlife Assurance of Canada vs. Court of Appeals, G.R. No. 105235, 22 June
1995.

• Malayan Insurance Co., Inc. vs. PAP Co., Ltd., G.R. No. 200784, 07 August
2013.

• Florendo vs. Philam Plans, Inc., G.R. No. 105135, 22 June 2012.

• Vda. De Canilang vs. Court of Appeals, G.R. No. 92492, 17 June 1993.

• Grepalife vs. Court of Appeals, G.R. No. L-31845, 30 April 1979.

• Saturnino vs. Philamlife, G.R. No. L-16163, 28 February 1963.

• Philamcare vs. Court of Appeals, G.R. No. 125678, 18 March 2002.

2. Insured need not die of disease he failed to disclose

3. Test of materiality

4. Waiver of material information

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 Case:

Ng Gan Zee vs. Asian Crusader Life Association Corporation, G.R. No.
L30685, 30 May 1983.

5. Incontestability Clause

Exceptions: lack of insurable interest; non-payment of premiums; fraud of a vicious

Cases:

• Tan vs. Court of Appeals, G.R. No. 48049, 29 June 1989.

• Manila Bankers Life Insurance Corp vs. Aban, G.R. No. 175666, 29 July
2013.

• Sun Life of Canada (Phils.) inc. vs. Sibya, G.R. No. 211212, 08 June 2016.

VI. POLICY

1. Definition

2. Rules in interpretation

Case:

Tang vs. Court of Appeals, G.R. No. L-48563, 25 May 1979.

3. Contents

4. Cover Notes

Cases:

• Pacific Timber Export Corp. vs. Court of Appeals, G.R. No. L-38613, 25
February 1982.

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 • Great Pacific Life Assurance vs. Court of Appeals, G.R. No. L-31845, 30
April 1979.

• De Lim vs. Sun Life Assurance of Canada, G.R. No. L-15774, 29 November
1920.

5. Kinds of Insurance Policies

Cases:

• Development Insurance Corp. vs. Intermediate Appellate Court, G.R. No.

• Great Pacific Life Assurance vs. Court of Appeals, G.R. No. 113899, 13
October 1999.

6. Prescriptive period of filing claims

Cases:

• Ang vs. Fulton Fire Insurance Co., G.R.No. L-15862, 31 July 1961.

• Country Bankers Insurance Corp vs. Travellers Insurance and Surety

• Sun Insurance Office, Ltd. vs. Court of Appeals, G.R. No. 89741 , 13 March
1991.

7. Cancellation of Policy

8. Renewal of Policy

VII. WARRANTIES

1. Warranty vs. Representation

2. Rules in case of violation

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 3. Violation of warranties entities other party to rescind

Cases:

• Union Manufacturing Co., Inc. vs. Philippine Guaranty, G.R. No. L-27932, 30
October 1972.

• United Merchants vs. Country Bankers Insurance, G.R. No. 198588, 11 July
2012.

• Malayan Insurance vs. PAP Co., Ltd., G.R. No. 200784, 07 August 2013.

VIII. PREMIUM

1. When must premiums be paid; effect of non-payment; effect of partial payment

Cases:

• Phil. Phoenix vs. Woodworks, G.R. No. L-25317, 06August 1979.

• Gaisano vs. Development Insurance and Surety Corp., G.R. No. 190702, 27
February 2017.

• UCPB vs. Masagana, G.R. No. 137172, 04 April 2001.

• Philippine Phoenix vs. Woodworks, G.R. No. L-22684, 31 August 1967.

• Tibay vs. Court of Appeals, G.R. No. 119655, 24 May 1996.

• Makati Tuscany Condominium Corporation vs. Court of Appeals, G.R. No.

• GSIS vs. Prudential Guarantee and Assurance, G.R. No. 165585, 20

2. Grace period in payment of premiums.

3. Instances where insured is entitled to return of premiums paid.

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IX. LOSS

1. Doctrine of proximate cause

2. Doctrine of the extension of the doctrine of proximate cause

3. Effect of negligence; proximate cause should be the peril insured against

X. NOTICE AND PROOF OF LOSS

Cases:

• Development Bank of the Philippines Pool of Accredited Insurance Co., vs. Radio
Mindanao Network, G.R. No. 147039, 27 January 2006.

• United Merchants Corporation vs. Country Bankers, G.R. No. 198588, 11 July
2012.

XI. DOUBLE INSURANCE

1. Overinsurance by double insurance; option to collect from who among the different
insurers; nature of liability of several insurers

2. Double insurance vs. Reinsurance

Cases:

Malayan Insurance vs. Philippine First Insurance, G.R. No. 184300, 11 July
2012.

XII. MARINE INSURANCE

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1. Perils of the sea vs. Perils of the ship

Cases:

• Choa Tiek Seng vs. Court of Appeals, G.R. No. 84507, 15 March 1990.

• Cathay Insurance vs. Court of Appeals, G.R. No. 76145, 30 June 1987.

2. Insurable interest of shipowner, cargo owner and charterer.

3. Concealment and misrepresentation; not necessary that the loss be a consequence of

4. Implied warranties

Case:

Roque vs. Intermediate Appellate Court, G.R. No. L-66935, 11 November

5. When vessel in seaworthy

Case:

Delsan Transport Lines vs. Court of Appeals, G.R. No. 127897, 15 November
2001.

6. Deviation; when it is proper

7. General averages

8. Constructive total loss; when it exists

Case:

Oriental Assurance vs. Court of Appeals, G.R. No. 94052, 09 August 1991.

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 9. Recovery of actual loss in lieu of abandonment

10. Measure of indemnity

Case:

Malayan Insurance vs. PAP Co., G.R. No. 200784, 07 August 2013.

XIII. FIRE INSURANCE

1. Extent of fire policy; damage due to smoke and soot excluded

2. Effects of alteration in use or condition of insured things

XIV. MOTOR VEHICLE LIABILITY INSURANCE

1. Authorized driver clause; who is an authorized driver

Case:

Palermo vs. Pyramid, G.R. No. L-36480, 31 May 1988.

2. Theft clause; application

3. No fault indemnity application

XV. BURGLARY ND THEFT INSURANCE

Case:

• Paramount Insurance Corp. vs. Spouses Remondeulaz, G.R. No. 173773, 28

• Villacorta vs. Insurance Commission, G.R. No. L-54171, 28 October 1980.

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XVI. SURETYSHIP vs. GUARANTEE

Case:

• First Lepanto-Taisho Insurance Corporation vs. Chevron Philippines, G.R. No.

• Prudential Guarantee vs. Equinox Land, G.R. No. 152505-06, 13 September 2007.

• AFP General Insurance vs. Molina, G.R. No. 151133, 30 June 2008

XVII. LIFE INSURANCE

1. Coverage; compensability in case of accident

Case:

Sun Insurance vs. Court of Appeals, G.R. No. 92383, 17 July 1992.

2. Rules in suicide

3. Rules on assignment of policy

4. Notice to insurer in case of assignment

XVIII. MICROINSURANCE

XIX. CLAIMS SETTLEMENT

Case:

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Mitsubishi Motors Phils. Salaried Employees Union vs. Mitsubishi Motors
Phil., 17 June 2013.

-END-

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