Makati Tuscany Condominium Corporation vs.

Court of Appeals [GR 95546, 6 Novembe r 1992] First Division, Bellosillo (J): 3 concur, 1 on leave Facts: Sometime in early 1982, American Home Assurance Co. (AHAC), represented by Ameri can International Underwriters (Phils.), Inc., (AIUI) issued in favor of Makati Tusc any Condominium Corporation (Tuscany) Insurance Policy AH-CPP-9210452 on the latter's building and premises, for a period beginning 1 March 1982 and ending 1 March 1983, with a total premium of P466,103.05. The pre mium was paid on installments on 12 March 1982, 20 May 1982, 21 June 1982 and 16 November 1982, a ll of which were accepted by AHAC. On 10 February 1983, AHAC issued to Tuscany Insurance Policy N o. AH-CPP-9210596,which replaced and renewed the previous policy, for a term cov ering 1 March 1903 to 1 March 1984. The premium in the amount of P466,103.05 was again paid on installments on 13 April 1983, 13 July 1983, 3 August 1983, 9 September 1983, and 21 November 1983. All payments were likewise accepted by AHAC. On 20 January 1984, the policy was again renewed and AHAC issued to Tuscany Insuran ce Policy AH-CPP9210651 for the period 1 March 1984 to 1 March 1985. On this renewed policy, Tus cany made two installment payments, both accepted by AHAC, the first on 6 February 1984 for P5 2,000.00 and the second, on 6 June 1984 for P100,000.00. Thereafter, Tuscany refused to pay the balance o f the premium. Consequently, AHAC filed an action to recover the unpaid balance of P314,103.05 for Insurance Policy AHCPP-9210651. In its answer with counterclaim, Tuscany admitted the issuance of I nsurance Policy AH-CPP9210651. It explained that it discontinued the payment of premiums because the p olicy did not contain a credit clause in its favor and the receipts for the installment payments coverin g the policy for 1984-85, as well