SB | 1

Feb. 13, 2019

2J
CASE: White Gold Marine Services v.
1. What is a P&I (Protection and Indemnity Club) as defined in the case of White Gold Marine Services?
2. What is White Gold? Is it a vessel owner?
3. What is Pioneer Insurance? Is it a P&I Club?
4. Why is it called “P&I Club”?
5. What is the role of Pioneer Insurance in the transaction?
6. Facts of the case?
7. How many vessels?
8. Nature of agreement?
9. Nature of P&I coverage? Is it a third party liability insurance?
10. Are the insured also the insurers?

CASE: Phil. Healthcare Provider Inc. v. CIR

1. What are the 3 types of services rendered by HMOs?
11. Principal object and purpose test in correlation with the 3 types of services?

CONCEPT
1. Elements of insurance contracts?
- The following are the elements:
a. Existence of an insurable interest
b. Risk of loss
c. Assumption of risk
d. Scheme to distribute losses; and
e. Payment of premiums

12. What do you mean by “risk-distributing device”?

- The device of insurance serves to distribute the risk of economic loss among as many as possible to those who are subject to
the same kind of risk.
- By paying a predetermined amount into a general fund out of which payment will be made for an economic loss of a defined
type, each member contributes to a small degree toward compensation for losses suffered by any member of the group.

13. Contract of insurance?

- An agreement whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an
unknown or contingent event (Sec. 2, ICP).

14. HYPO: H and W agreed to pool a portion of their salaries to a common fund to answer in case one gets sick. Are they engaged
in an insurance business?

15. Does a single transaction constitute the doing of an insurance business?

16. Indemnity—should it always be money? Can it be rendered in the form of services?

17. Option to rebuild clause? What kind of property insurance?

—————————————————————————————————————————

2C

CASE: Enriquez v. Sunlife

1. Distinguish the Code of Commerce and Civil Code provisions
18. What is the theory used as basis of the CC provision on acceptance?

CASE: Eternal Gardens v. Philamlife

1. Who is the offeror in this case? In Enriquez?
19. What is the difference between the two cases?
20. When is there acceptance in the Eternal Case?

CASE: Philippine Healthcare Provider Inc v. CIR

 SB | 2

1. What are the 3 medical services offered by HMOs?

21. What is the type of tax being collected?

CASE: White Gold Marine Services v. Pioneer Insurance

1. What is a P&I Club?

CONCEPT:
1. Define indemnification
- It simply means that the insured who has insurable interest over a property is only entitled to recover the amount of actual loss
sustained, and the burden is upon him to establish the amount of such loss.

22. What is an actuarial risk?

23. HYPO: Law firm X undertakes to represent Y Co. to any suit. Is the law firm engaged in insurance business?
24. Can a single transaction be considered as an insurance business?
25. HYPO: City of Manila issued an ordinance requiring insurance business to acquire accreditation first within the city
government as another layer of regulation for insurance companies. Is it a valid regulation?
- NO it is not a valid regulation. No insurance company issued with a valid certificate of authority to transact insurance business
anywhere in the Philippines by the Insurance Commissioner, shall be barred, prevented, or disenfranchised from issuing any
insurance policy or from transacting any insurance business within the scope or coverage of its certificate of authority, anywhere
in the Philippines, by any local government unit or authority, for whatever guise or reason whatsoever, including under any kind
of ordinance, accreditation system, or scheme. Any local ordinance or local government unit regulatory issuance imposing such
restriction or disenfranchisement on any insurance company shall be deemed null and void ab initio (Sec. 193, ICP).

26. Can H make his paramour his beneficiary?

27. Art. 739, CC
28. Can W insure the life of H? Can W designate the paramour as her beneficiary? Apply 739.
- YES. W can insure the life of H (Sec. 3, ICP) but she CANNOT designate her paramour as her beneficiary in view of the
prohibition in Art. 2012, in relation to Art. 739, CC and the absence of any specific provision in the ICP on the matter.

29. Art. 2012, CC

30. Who is a public enemy?
31. Is CPP, NPA a public enemy?
32. Can an association lawfully engage in insurance business? Domestic corporation? Foreign corporation?
33. Can a domestic corporation be considered a public enemy? How about if the majority of controlling interest is a national of
public enemy?
34. Control test?
35. What if the beneficiary is a national of public enemy?
36. What if the insurer is public enemy but insured is Filipino national?
37. Sec. 12, ICP

Note:
- The CC provisions dealing on insurance are found in Arts. 739, 2012 (on void donations); 2011 (on applicability of CC); 2021-
2027 (with respect to annuity contracts); 2186 (CMVLI); and 2207 (on the insurer’s right of subrogation)