CASE TITLE: (14) AISPORMA vs. COURT OF APPEALS GR NO.

L-39419, April 12, 1982 FACTS: Petitioner Mapalad Aisporma, wife of Rodolfu Aisporma, was found guilty of the trial court and court of appeals for violation Sec. 189 of the Insurance Act. Rodolfu Aisporma was duly licensed by Insurance Commission as agent of Perla Compania de Seguros. A Personal Accident Policy was issued by Perla through its authorized representative, Rodolfu Aisporma, to Ana M. Isidro. It was found out that the policy was issued with active participation of petitioner Mapalad Aisporma. Furthermore, it was noted that petitioner DID NOT receive any compensation for issuance of the insurance policy. Apparently, the insured (Isidro) died by violence during the lifetime of the policy. a careful perusal Sec 189 shows that the FIRST PARAGRAPH thereof prohibits a person from acting as agent, sub-agent, or broker in the solicitation or procurement of application for insurance WITHOUT first procuring a certificate of authority so to act from the Insurance Commission, while its SECOND PARAGRAPH defines who is an insurance agent, within the intent Sec. 189. HenceAny person who for compensation x x x shall be an insurance agent within the intent of this section, x x x. ISSUE: Whether or not the petitioner is an agent of an insurance company as provided in Sec. 189 HELD: NO, applying the definition of an insurance agent in the SECOND PARAGRAPH to the agent mentioned in the FIRST AND SECOND PARAGRAPH would give harmony to the aforesaid three paragraphs of Sec. 189. Legislative intent must be ascertained from a consideration of the statute as a whole. Considering that the definition of an insurance agent as found in the SECOND paragraph is also applicable to the agent mentioned in the FIRST paragraph, to RECEIVE A COMPENSATION by the agent is an ESSENTIAL ELEMENT for a violation of the FIRST paragraph of the aforesaid section. The appellate court has established ultimately that the petitioner Mapalad Aisporma did not receive any compensation for the insurance of the insurance policy of Eugenio Isidro. Thus, he is not an agent and therefore, he should not be convicted for violating Sec. 189.