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Inc. v. Philippine International Surety Co., Inc. (1963)
G.R. No. L-15184 May 31, 1963
Lessons Applicable: Mortgagor (Insurance)
Laws Applicable:
FACTS:
Saura Import & Export Co Inc., mortgaged to the Phil. National Bank,
a parcel of land.
The mortgage was amended to guarantee an increased amount,
bringing the total mortgaged debt to P37,000
On the land mortgage is a building owned by Saura Import & Export
Co Inc. which was insured with Philippine International Surety (Insurer) even
before the mortgage contract so it was required to endorse to mortgagee
PNB
October 15, 1954: Barely 13 days after the issuance of the fire
insurance policy, the insurer cancelled it. Notice of the cancellation was
given to PNB (mortgagee). But Saura (insured) was not informed.
April 6, 1955: The building and all its contents worth P40,685.69 were
burned so Saura filed a claim with the Insurer and mortgagee Bank
RTC: dismissed