An Outline of the Insurance Code

Republic Act No. 10607 (Amending Presidential Decree 612)

1. Definition of Insurance
2. The Contract of Insurance
Gercio vs. Sunlife Insurance Co., 48: 53
Fieldmen’s Insurance Co., Inc. vs. Vda. De Songco, 25 SCRA 70
a. What may be insured
i. Kinds of insurable risk
ii. Insurance by married woman
iii. Insurance by minors
b. Parties to the contract
i. Who may be an insurer
ii. Who may be insured
iii. Insurance by mortgagor and mortgagees
San Miguel Brewer vs. Law Union and Rock Insurance Co., 40:6
Gonzales La O vs. Yek Tong Lin, 55:396
Bachrach vs. British American Ass. Co., 17:562
c. Insurable interest
i. Insurable interest in general
Filipinas Cia. De Seguros vs. Christian Huenfeld & Co., Inc., G.R. No. L-
2294, May 25, 1951
ii. Insurable interest in life
El Oriente vs. Posadas, 56: 147
iii. Insurable interest in property
PAL vs. Heald Lumber Co., 70 SCRA 323
Lamparo vs. Jose, 30: 437
Garcia vs. Hongkong Fire & Marine Ins. Co., 45:122
Lopez vs. del Rosario and Quiogue, 44: 99
iv. When insurable interest must exist
v. Effect of change of interest
vi. Assignment of insurance policies
San Miguel Brewer vs. Law Union and Rock Insurance Co., 40:6
Central Surety & Insurance Co. vs. Silva, (CA) O.G. No. 2, Jan. 31, 1958,
p.376: the mere delivery of an insurance policy or the assignment of the
receipts thereunder cannot be construed as payment in just the same way
that delivery of other mercantile and negotiable instruments do not
constitute payment until the proceeds are realized in accordance with
Article 1249 of the Civil Code. The reason is that an insurance policy is but
an evidence of a right to claim indemnification for loss occasioned by the
risk insured against.
 vii. Correct estimation of risk
viii. Delimitation of the risk
ix. Control of the risk
x. Concealment
Musgni vs. West Coast Life Insurance Company, 61:804
Argente vs. West Coast Life Insurance Company, 51:275
De Leon vs. Crown Life Ins. Co., C.A. GR 44842: there was concealment
where applicant did not disclose he had pneumonia, diabetesor syphilis
which avoided the insurance policy although the cause of death was
totally unconnected to the material fact misrepresented.
Insular Life Ass. Vs. Pineda, CA GR 43967: in the absence of evidence of
the uninsurability of a person afflicted with chronic cough, concealment
thereof is no ground for annulment of the policy
Yu Pang Cheng vs. CA, GR No. L-12465, May 29, 1959
Saturnino vs. Philamlife, 7 SCRA 316
xi. Duty to Disclose
d. Representations
i. Definition and nature
ii. Promissory representation
iii. Affirmative representation
iv. Effect of falsity of representation
Insular Life Ass. Ltd. vs. Feliciano, 73: 201
Sison vs. Manufacturer’s Life, 37 OG 1663: after the insurance policy was
issued to A, it was found out that a brother and sister of his had
previously died of pulmonary tuberculosis and that he was already
spitting blood at the time he filed his application. In this case, the
misrepresentation was material and sufficient to avoid the contract of
insurance.
v. Rescission of insurance contracts
Saura Import & Export vs. Phil. Int’l Co., GR No. L-15184, May 31, 1963
vi. Effect of waiver and estoppel
vii. Incontestable clause
viii. Preliminary contracts of insurance
ix. Informal writings to evidence insurance
x. The insurance policy
De Lim vs. Life Ass. of Canada, 41:263
Enriquez vs. Sun Life of Canada, 41:269
Bonifacio Bros. vs. Mora, 20 SCRA 261
Ty vs. First National Surety, 1 SCRA 1324
Ty vs. Filipinas Compania de Seguros, 17 SCRA 365
Ang Giop Chip vs. Springfield, 56:275
 xi. Construction and reformation of insurance policy
Sindayen vs. Ins. Life Ass., 62:9
Young vs. Midland Textile, Inc., 30: 617
Misamis Lumber vs. Capital Ind. & Surety, 17 SCRA 228
Tuarus Taxi Co. vs. Capital Ass. & Surety, 24 SCRA 254
Jarque vs. Union Fire, 56: 758
Phil. Mfg. vs. Union Ins. Society of Canada, 42: 378
xii. Matters to be stated in the policy
Paris Manila Perfume Co. vs. Phoenix Ass., 49: 753
Lim Cuan Sy vs. Northern Ass. o., 55:248
Sharruf & Co. vs. Baloise Fire Ins., 64: 258
xiii. To whom proceeds of policy payable
xiv. Open, valued and running policy
xv. Effect of certain stipulations in policy
Paulino vs. Capital Ins., No. L-11728, May 9, 1959
e. Warranties
i. Definition and nature
ii. Warranties vs. representations, conditions, etc.
Harding vs. Commercial Union Ass. Co., 38:454
Pioneer Insurance & Surety vs. Yap, 61 SCRA 426
Filipinas Life Assurance vs. Nava, 17 SCRA (1966)
iii. Effects of violation of warranty
f. Premium
i. Definition
ii. Time, place, mode, etc. of payment of premium
Capitol Ins. & Surety vs. Plastic Era Co., Inc., 65 SCRA 134
iii. Effect of non-payment
iv. Relief of harshness from forfeiture clauses. grace period, cash surrender
value
v. Reinstatement of lapsed policy
vi. Excuse of non-payment of premiums
vii. Recovery of premiums paid
g. Loss
i. Meaning of proximate cause
ii. Losses for which insurer not liable
h. Notice of loss
i. Double insurance
j. Reinsurance
k. Payment of claims
3. Classes of Insurance
a. Marine Insurance
 i. The vessel
ii. Cargoes and merchandise
iii. Goods stowed on deck
iv. Freightage
v. Insurable risks
vi. Perils of the sea
Go Tiaoco Y Hnos vs. Union Insurance Society of Canton Ltd., 40:40
vii. Insurable interest
1. As to freightage
2. In expected profits
viii. Loan on bottomry
ix. Loan on respondentia
x. Passage money
xi. Concealment
1. Standards for marine vs. fire insurance
2. Fraudulent intent
xii. Representations
1. Distinction between promissory representation and expectation
2. When fraud essential to falsity
xiii. Implied warranties
1. Seaworthiness
a. Extent
b. Different portions of trip require different degrees of
seaworthiness
c. Transshipment of cargo
2. The vessel shall not deviate from the agreed voyage
3. The vessel shall not engage in illegal ventures
xiv. Voyage and deviation
1. Seaworthiness vs. warranty of due diligence
2. Exceptions
3. Effect of improper deviation
xv. Loss
1. Actual total loss
2. Partial loss
3. Constructive total loss
4. Liability refers to insurance on cargo
5. Liability in case of reshipment
6. Articular average
7. General average
8. FPA (Free from Particular Average) Clauses
9. Deductible Franchise Clause
 10. Memorandum
11. Inchmaree Clause
xvi. Rules of Abandonment
xvii. Nature of Indemnity
1. Co-insurance
2. Co-insurance implied in marine but not fire insurance
3. Primage
4. Drawback
St. Paul Fire & Marine Insurance Co. vs. Macondray & Co., Inc., et.
al., 70 SCRA 122
5. Remedies in case of gross average
b. Fire Insurance
Filipinas Cia. Seguros vs. Tan Chuaco, 47 O.G. 3486
Tan Chuco vs. Yorkshire Fire Ins. Co., 14:346
Go Lu vs. Yorkshire Ins. Co, 43:633
Gonzales vs. LaO Yeck Tong Lin Fire & Marine Ins. Co., 55:386
Yu Hun & Co. vs, British Traders Ins. Co., G.R. Nos. L-3719-25,May
18, 1954
Garris, Terren & Co. vs. North China Ins. Co., 44:749
Pioneer Insurance & Surety Corp. vs. Yap, 61 SCRA 426
c. Casualty Insurance
d. Suretyship
e. Life insurance
Teresa vda. De Fernadez vs. National Life Insurance Co. G.R. L-
14242, June 30, 1960
Gercio vs. Sun Life, 48:53
Insular vs. Suva, 62:246Nario vs. Philam Life, 20 SCRA 434
BPI vs. Posadas, 56:215
Sun Life vs. Ingersoll, 42:331
Biagtan vs. Insular Life. 44 SCRA 58
4. The Business of Insurance
5. Security Fund
6. Compulsory Motor Vehicle Liability Insurance
7. Mutual Benefit Associations and Trusts for Charitable Uses