Wesleyan University-Philippines

John Wesley School of Law and Governance

1st Semester, AY 2021-2022

Course: Insurance Law

Day and time: Saturday, 8:00-10:00 a.m.
Units: Two (2)
Professor: Judge Leah A. De Guzman
Email: attyeyah@gmail.com

Course Description:

The subject will focus on P.D. 612 as amended by RA 10607, focusing on the concept, functions and
characteristics of insurance contracts; what may be insured; insurable interest; devices for ascertaining
risk of loss (concealment and representation; warranties; exceptions); premium; the concepts of loss,
notice and proof of loss; double insurance; reinsurance; classes of insurance; the business of insurance
and regulation of the insurance industry. Class discussions will be focused on jurisprudence. An outline of
the topics will be provided.

Learning outcome

The primary objective is for students to know and understand the principles of insurance law and their
application. Secondarily, the course aims to help students realize the importance of insurance, the role it
plays for the future and security of individuals and businesses, and its impact to the legal system.

Course output

(1) There will be recitation/reporting every class, and it is expected that at the end of the course,
students will be able to intelligently discuss and answer questions on insurance law and its
application to specific situations.

(2) There will be mid-term and final exams.

(3) Students are to submit a compiled handwritten case digest of the assigned cases.

Grading:
(1) Recitation/Report: 20%
(2) Mid-term Exam: 30%
(3) Final Exam: 30%
(4) Case Digest: 20%
OUTLINE

I. GENERAL PROVISIONS
 Sections 1-2, Insurance Code (“IC”)

1. Concept of insurance

2. History and origin of insurance; sources of Philippine insurance law

3. Laws governing insurance

4. Applicability of the Civil Code – Art. 2011, Civil Code (“CC”)

a) Requisites for validity of contract in general
- Offer and acceptance; consent; subject matter; cause or consideration; capacity of
contracting party
See: De Lim v. Sun Life of Canada, GR 15774, 29 November 1929
Enriquez v. Sun Life of Canada, 41 Phil. 269, 29 November 1920
Perez v. Court of Appeals, 323 SCRA 613 (2000)
DBP v. Court of Appeals & Dans, et al., 231 SCRA 370 (1994)
Zenith Insurance v. Fernandez, 186 SCRA 398 (1990)
b) Void donations – Art. 2012 & Art. 739, CC
See: Insular Life v. Ebrado, et al., 80 SCRA 181 (1977)
c) Life annuity contracts - Art. 2021-2127, CC
d) Compulsory motor vehicle liability insurance - Art. 2186, CC

5. Contract of insurance
a) Definition
b) Requisites for validity
c) Distinguishing or essential l elements
d) Characteristics
See: Gulf Resorts v. Philippine Charter Insurance, 458 SCRA 550 (2005)

6. Subrogation – Art. 2027, CC

See: Pan Malayan Insurance v. Court of Appeals, 184 SCRA 54 (1990)
Manila Mahogany v. Court of Appeals, 154 SCRA 650 (1987)
Federal Express v. American Home Assurance, 437 SCRA 50 (2004)
Sveriges Assurance v. Qua Chee Gan, 21 SCRA 12 (1967)
Rizal Surety and Insurance v. Manila Railroad, 23 SCRA 205 (1968)
National Union Fire Insurance v. Stolt-Nielsen, 184 SCRA 1990
St. Paul Fire & Marine v. Macondray, 70 SCRA 122 (1976)
Cebu Shipyard v. William Lines, 306 SCRA 762 (1999)
Fireman’s Fund Assurance v. Jamila & Co., 70 SCRA 323 (1976)
F.F. Cruz & Co. v. Court of Appeals, 164 SCRA 731 (1986)
Compania Maritima v. Insurance Co. of North America, 12 SCRA 213
7. Construction of insurance contracts
See: Art. 1377, CC
Calanoc v. Court of Appeals, GR L-1851, 16 Dec. 1955
Biagtan v. Insular Life, 41 SCRA 58 (1972)
Qua Chee Gan v. Law Union and Rock Insurance Co., 98 Phil. 85 (1955)
Ty. First National Surety Assurance, 1 SCRA 1324 (1961)
De la Cruz v. Capital Insurance, 17 SCRA 559 (1966)
 Taurus Taxi v. Capital Insurance, 24 SCRAA 454 (1968)
CCC Insurance v. Court of Appeals, 31 SCRA 264 (1970)
Sun Life Insurance v. Court of Appeals, 211 SCRA 554 (1990)
Perla Cia. De Seguros v. Court of Appeals, 208 SCRA 487 (1992)
Fortune Insurance v. Court of Appeals, 244 SCRA 308 (1996)
8. Business of insurance
See: White Gold Marine Services v. Pioneer Insurance, 464 SCRA 448 (2005)
Philamcare Health Systems v. Court of Appeals, 379 SCRA 356
9. Classes of insurance

II. CHAPTER I: THE CONTRACT OF INSURANCE

A. What may be insured

Title 1, Sections 3-5, IC

B. Parties to insurance contract

Title 2, Sections 6-10, IC

1. Who may be an insurer – Sec. 6

2. Who may be insured – Sec. 7
- Public enemy; effect of war
See: Filipinas Cia. De Seguros v. Christern Huenfeld, 89 Phil. 54 (1951)
Constantino v. Asia Life Insurance, 87 Phil. 248, 31 August 1950
Sales de Gonzaga v. Crown Life Insurance, GR L-4197, 20 March 1957
3. Mortgagor & Mortgagee – Sec. 8 and 9
See: Grepalife v. Court of Appeals, 316 SCRA 677 (1999)
Palileo v. Cosio, 97 Phil. 919 (1955)
Saura Import & Export v. Phil. International Surety, 8 SCRA 143 (1963)
Philippine National Bank v. Court of Appeals, 158 SCRA 201 (1988)
San Miguel v. Law Union Rock, 40 Phil. 674 (1920)
Gonzalez Lao v. Yek Tong Lin Fire, GR 33131, 13 Dec. 1930

C. Insurable interest
Title 3, Sec. 10-26, IC

1. Insurable interest in general; why necessary; effect of lack of insurable interest – Sec. 18, 25,
IC
2. Insurable interest in life insurance – Sec. 10
See: Lalican v. Insular Life, 597 SCRA 159 (2009) – definition
Insular Life v. Ebrado, 80 SCRA 181 (1977)
El Oriente v. Posadas, 54 Phil. 147
See Family Code provisions on support
3. When insurable interest in life must exist – see Sec. 181, IC
4. Beneficiary – Sec. 11, IC
See: Art. 2012 and 739, CC
Insular Life v. Ebrado, 80 SCRA 181 (1977)
Vda. De Consuegra v. GSIS, 37 SCRA 316 (1971)
Gercio v. Sun Life Insurance, 48 Phil. 53 (1925)
Nario v. Phil-Am Life, 20 SCRA 434 (1967)
Phil-Am Life v. Pineda, 175 SCRA 416 (1989)
 5. Forfeiture of interest of beneficiary – Sec. 12, IC
6. Insurable interest in property insurance – Sec. 13, 14, IC
See: Gaisano Cagayan v. Ins. Co. of North America, 490 SCRA 286 (2006)
Commercial Union Assurance. v. Lepanto, 113 SCRA 752 (1982)
Harding v. Commercial Union Assurance, 38 Phil. 464 (1918)
Lampano v. Jose, 30 Phil. 537 (1915)
7. Insurable interest of carrier of depositary – Sec. 15, IC
See: Lopez v. del Rosario, 44 Phil. 98 (1922)
8. Contingent or expectant interest not an insurable interest – Sec. 16, IC
9. Measure of insurable interest – Sec. 17, IC
See: Ong Lim Sing, Jr. v. FEB Leasing, 524 SCRA 333 (2007
Philam Health Systems v. Court of Appeals, 379 SCRA 356 (2002)
10. Effect when no insurable interest exists – Sec. 18, IC
See: Spouses Cha v. Court of Appeals, 277 SCRA 690 (1997)
Garcia v. Hong Kong Fire & Marine Insurance, GR 20341, 1 Sept 1923
11. When insurable interest must exist – Sec. 19, IC
See: Tai Tong Chuache v. Insurance Commission, 158 SCRA 366 (1988)
12. Change in interest in property – Sec. 20, 21, 22, 23, 24
See: San Miguel v. Law Union Rock, 40 Phil. 674 (1920)
13. Prohibited stipulation in policy – Sec. 25, IC

D. Concealment
Title 4, Sec. 26-35, 51, IC

1. Definition – Sec. 26, IC

2. Effect of concealment on insurance contract – Sec. 27, IC
3. Duty to communicate – Sec. 28, IC
4. Intentional or fraudulent omission – Sec. 29, IC
5. What need not be communicated; exceptions – Sec. 30, 35, 35, 51, IC
6. Test of materiality – Sec. 31, IC
7. Matters each party is bound to know – Sec. 32, IC
8. Waiver of right to information – Sec. 33, IC

See: Argente v. West Coast Life Insurance, 9 March 1928

Great Pacific Life v CA; Mondragon v. CA, 89 SCRA 543 (1979)
Saturnino v. Philippine American Life, 7 SCRA 316 (1963)
Canilang v. CA & Great Pacific Life 223 SCRA 443 (1993)
Sun Life Assurance v. CA & spouses Bacani, 245 SCRA 268 (1995)
Edillon v. Manila Bankers Life Assurance, 117 SCRA 187 (1982)

E. Representation
Title 5; Sec. 37-48, 51, IC

1. Definition
2. How representation is made – Sec. 36
3. When representation made – Sec. 37
4. Construction of representation – Sec. 38
5. Promissory representation – Sec. 39
6. Effect of representation on provisions of policy; on implied warranty – Sec. 40
7. When representation may be withdrawn – Sec. 41
8. Time to which representation refers – Sec. 42
 9. Information from third person; from agent – Sec. 43
10. When representation deemed false – Sec. 44
11. Effect where representation is false – Sec. 45
12. Determination of materiality – Sec. 46
13. Applicability to modifications of original contract – Sec. 47
14. Rescission; incontestability – Sec. 48
- Defenses not barred by incontestability clause

See: Art. 1370-1378, Civil Code

Sec. 10-19, Rule 130, Revised Rules of Court
Ng Gan Zee v. Asian Crusader Life, 122 SCRA 461 (1963)
Tan v. Court of Appeals and Phil-Am Life, 174 SCRA 403 (1989)

F. The Policy
Title 5, Sec. 49-66, IC

1. Definition; form – Sec. 54-50, IC

a) Terms of policy constitute the measure of the insurer’s liability
See: Pacific Banking v. CA, 168 SCRA 1 (1988)
Oriental Assurance v. Court of Appeals, 200 SCRA 459 (1991)
Fortune Assurance v. Court of Appeals, 244 SCRA 308 (1995)
b) Perfection of contract; contract of adhesion
See: Cases re contract of insurance (see above)
Cases re construction of insurance contract (see above)
c) Delivery of policy
d) Riders; attached papers
e) Effect of insured’s failure to read policy – is there a duty to read the policy?
f) Insurer’s duty to explain
g) Group insurance
2. Contents of policy – Sec. 51; 226, 227, 229, 230, 231, IC
3. Preliminary contracts of insurance – Sec. 52
a) Issuance and renewal of cover notes
b) Rules on cover notes
See: Great Pacific Life v. Court of Appeals, 89 SCRA 543 (1979)
4. Persons entitled to recover on policy – Sec. 53
See: Bonifacio Brothers v. Mora, 20 SCRA 261 (1967)
Heirs of L.G. Maramag v. Maramag, 588 SCRA 774 (2009)
Coquia v. Fieldmen’s Insurance, 26 SCRA 178 (1968)
5. Insurance by agent or trustee – Sec. 54
See: Lopez v. Del Rosario, 44 Phil 98 (1922)
6. Insurance by partner/co-owner – Sec. 55
7. Where description of insured general – Sec. 56, 57
8. Effect of transfer of thing insured – Sec. 58
9. Open, valued and running policies – Sec. 59, 60, 61, 62
See: Development Bank v, Intermediate Appellate Court, 143 SCRA 62 (1986)
10. Commencement of action – Sec. 63
- When cause of action accrues
See: Teal Motor v. Orient Insurance, 59 Phil. 809
Ang v. Fulton Fire Insurance, 2 SCRA 945 (1961)
Sun Insurance Office v. CA, 195 SCRA 193 (1991)
Pacific Banking Corp. v CA, 168 SCRA 1 (1988)
 Travellers Insurance v. CA, 272 SCRA 536 (1997)
Lopez v. Compania de Seguros, 16 SCRA 855 (1966)
ACCFA v. Alpha Insurance, 24 SCRA 151 (1968)
11. Cancellation of non-life policy – Sec. 62
See: Saura Import & Export v. Phil. Int’l Surety – 8 SCRA 143 (1963)
Malayan Insurance v. Cruz-Arnaldo, 154 SCRA 672 (1987)

G. Warranties
Title 7, Sec. 67-76, IC

1. Definition
2. Distinguished from representations
3. Kinds of warranty – Sec. 67
4. Time to which warranty relates – Sec. 68
(a) Past, present or future
(b) Affirmative or promissory
5. Language – Sec. 69
6. Where express warranty contained – Sec. 70
7. Express warranty – Sec. 71
8. Warranty of facts or omissions – Sec. 72
9. When breach of warranty does not avoid policy- Sec. 73
10. Effect of violation of material warranty – Sec. 74
11. Immaterial provision in policy – Sec. 75
12. Breach of warranty without fraud – Sec. 76
13. Conditions; distinguished from warranties
14. Exceptions; distinguished from warranties and conditions
15. Effect warranties, conditions and exceptions

See: American Home Insurance v. Tantuco Enterprises, 366 SCRA 740 (2011)
Ang Giok v. Springfield Fire & Mutual Insurance, 56 Phil. 375 (1931)
Qua Chee Gan v. Law Union and Rock Insurance, 98 Phil 85 (1955)
Pioneer Insurance v. Yap, 61 SCRA 426 (1974)
Prudential Guarantee v. Trans Asia Shipping, 491 SCRA 411 (2006)

H. Premium
Title 8, Sec. 77-82, IC

1. Definition of premium; distinguished from assessment

2. Payment of premium; effect of non-payment – Sec.77
- Nature of obligation; extension of credit; when policy binding despite non-payment of
premium
3. Effect of acknowledgement of payment; effect of acceptance – Sec. 78
4. When insured entitled to return of premium paid – Sec. 79, 80, 81, 82

See: Arce v. Capital Insurance, 117 SCRA 63 (1982)

Phil. Phoenix Surety & Assurance v. Woodworks, Inc., 20 SCRA 1270 (1967)
and 92 SCRA 419 (1979)
Makati Tuscany Condominium v. Court of Appeals, 215 SCRA 463 (1992)
Tibay v. Court of Appeals, 257 SCRA 126 (1996)
Malayan Insurance v. Court of Appeals, 154 SCRA 672 (1987)
UCPB General Insurance v. Masagana Telemart, 356 SCRA 307 (2001)
 American Home Insurance v. Tantuco Enterprises, 366 SCRA 740 (2001)
Great Pacific Life Insurance v. Court of Appeals, 184 SCRA 501 (1990)
Stokes v. Malayan, 127 SCRA 766 (1984)
Capital Insurance v. Plastic Era, 65 SCRA 134 (1975)

I. Loss
Title 9, Sec. 83-92, IC

1. Claim defined
2. Loss defined; scope of loss; see also Art. 1189, Civil Code
3. Transfer of claim after loss occurs – Section 83, IC
4. Liability of insurer for loss – Section 84, IC
- Proximate cause; extent of loss; burden of proof; proximate cause
5. Extension of the principle of proximate cause – Section 85, IC
6. Where proximate cause is an excepted peril – Section 86, IC
7. Liability of insurer for loss due to willful act; due to negligence– Section 87, IC

See: CCC Insurance v. Court of Appeals, 31 SCRA 264

Country Bankers Insurance v. Llanga Bay and Community Multi-purpose
Cooperative, 374 SCRA 653 (2002)
Paris-Manila Perfumery v. Phoenix Assurance, 49 Phil. 753 (1926)
FGU Insurance v. Court of Appeals, 454 SCRA 337 (2005)

J. Notice and proof of loss

Title 10, Sec. 88- 92, IC

1. Conditions before and after loss

2. Notice of loss to insurer – Sec. 88, IC
3. Proof of loss – Sec. 89, 90, 91, 92, IC
- Meaning and nature; form; purpose; burden of proof of loss; defects; delay

See: Malayan Insurance vs. Cruz-Arnaldo, 154 SCRA 672 (1987)

Yu Ban Chuan v. Fieldmen’s Insurance, 14 SCRA 491 (1965)
Go Lu v. Yorkshire Insurance, 43 Phil. 633 (1922)
Finman’s General Assurance v. Court of Appeals, 361 SCRA 214 (2001)
Pacific Timber v. Court of Appeals, 112 SCRA 199 (1982)

K. Double insurance
Title 11, Sec. 93-94, IC

1. Double insurance defined – Sec. 93, IC

- Requisites, distinguished from over-insurance; binding effect of stipulation against;
purpose of prohibition
2. Payment of claim where there is over-insurance by double insurance – Sec. 94, IC

See: Sta. Ana v. Commercial Union Assurance, 55 Phil. 329 (1930)

Union Manufacturing v. Phi’ Guaranty, 47 SCRA 271 (1972)
Pioneer Insurance v. Yap, 61 SCRA 426 (1974
Geagonia v. Court of Appeals, 241 SCRA 152 (1995)
Pacific Banking Corp. v. Court of Appeals, 168 SCRA 1 (1968)
L. Reinsurance
 Title 12, Sections 95-98, IC

1. Reinsurance defined – Section 95, IC

- Purpose, functions, distinguished from double insurance
2. Duty of reinsured to disclose facts – Section 96, IC
- Treaty v. facultative reinsurance
3. Nature of reinsurance contract - Section 97, IC
- Subrogation in reinsurance
4. Original insured and contract of reinsurance – Section 98, IC

See: Pioneer Insurance v. Court of Appeals, 175 SCRA 668 (1989)

Gibson v. Revilla, 92 SCRA 219 (1979)
Artex Development v. Wellington Insurance, 51 SCRA 352 (1973)

III. CLASSES OF INSURANCE (Chapter II, Insurance Code)

A. Marine Insurance
Title 1, Sec. 99-166

1. Definition of marine insurance – Sec. 99;

a) Scope of ocean marine insurance
b) Risks or losses covered in ocean marine insurance
c) Perils of the sea; distinguished from perils of the ship
d) Proximate cause of loss
e) “All risks” marine policy
See: Roque v. Intermediate Appellate Court, 139 SCRA 596 (1985)
Go Tiaco v. Union Insurance of Canada, 40 Phil. 40 (1919)
Choa Tiek Seng v. Court of Appeals, 183 SCRA 223 (1990)
Filipino Merchants Ins. v. Court of Appeals, 179 SCRA 638 (1989)

2. Insurable interest – Sec. 100- 106;

a) Of ship owner
- in the vessel – Sec.100; Sec. 101
- in the freightage – Sec. 102, 103, 104
b) Of the shipper or consignee
c) In the profits – Sec. 105
d) Of charterer – Sec. 106
See: Puromines v. Court of Appeals, 220 SCRA 281 (1993)]
Caltex (Phils.) Inc. v. Sulpicio Lines, 315 SCRA 709 (1999)
San Miguel v. Heirs of Inguito, 384 SCRA 87 (2002)
3. Concealment in marine insurance – Sec. 107-110;
a) Additional duty to communicate – Sec. 107
b) Opinions or expectations of third party – Sec. 108
c) Presumptive knowledge by insured of prior loss – Sec. 109
d) Instances where concealment does not vitiate entire contract – Sec.110
4. Representation in marine insurance – Sec.111 -112;
a) Effect of false representation – Sec. 111
b) Falsity of representation as to expectation – Sec. 112
5. Implied warranty of seaworthiness – Sec.113, 114, 115, 117, 118;
a) Implied warranty of seaworthiness – Sec. 113
 b) What constitutes seaworthiness – Sec. 114
c) When complied with; exceptions – Sec. 115
d) Scope of seaworthiness of vessel – Sec. 116
e) Seaworthiness during voyage in stages – Sec. 117
f) Delays in repairs where ship becomes unseaworthy during voyage – Sec. 118
See: Caltex (Phils.) Inc. v. Sulpicio Lines, 315 SCRA 709 (1999)
San Miguel v. Heirs of Inguito, 384 SCRA 87 (2002)
Philippine American General Insurance v. CA, 273 SCRA 262 (1997)
Delsan Transport v. CA, 369 SCRA 24 (2001)
6. Express warranty as to nationality or neutrality - implied warranty to carry requisite
documents – Sec. 120
7. Voyage and Deviation – Sec. 121, 123. 124, 125;
a) Meaning of deviation; cases of deviation – Sec. 121-123
b) Proper deviation – Sec. 124
c) Improper deviation – Sec. 125
d) Effect of improper deviation – Sec. 126
8. Loss – Sec. 127-137;
a) Kinds of loss – Sec. 127, 128, 129
b) Actual total loss – Sec. 130
c) Constructive total loss – Sec. 131
d) Presumption of actual total loss – Sec. 132
e) Liability of insurer in case of reshipment – Sec. 133
f) Additional liability of insurer of goods – Sec.134
g) Right of insured to payment upon actual total loss – Sec. 135
h) Average – Sec. 136
i) Scope of insurance against actual total loss – Sec. 137
See: Oriental Assurance v. Court of Appeals, 200 SCRA 459 (1991)
Philippine Home Assurance v. Court of Appeals, 257 SCRA 468 (1996)
9. Abandonment – Sections 138-155;
a) Meaning – Sec. 138
b) Requisites
(i) Relinquishment – Sec. 138
(ii) Constructive total loss – Sec. 139
(iii) Must be absolute – Sec. 140
(iv) Within reasonable time – Sec. 141
(v) Factual – Sec. 142
(vi) Notice – Sec. 143, 144, 145
c) Effect of valid abandonment – Sec. 146
d) Rights & liabilities of insurer who pays – Sec. 147; 148
f) Refusal to accept abandonment – Sec. 149
g) Acceptance of abandonment – Sec. 150, 151, 152, 153, 154
10. Measure of indemnity – Sections 156 – 166

B. Fire insurance
Title 2, Sections 167 – 173, IC;

1. Definition; coverage – Sec. 167

a) Fire and extended coverage
b) Concept of fire
c) Direct and indirect losses
d) Ocean marine and fire policies distinguished
 2. Alteration in thing insured – Sec. 168; Sec. 169
a) Alterations that increase risk or hazard
b) Alterations that do not increase risk or hazard
c) Effect of alteration on policy
d) Insured’s control or knowledge of alteration
e) Application of Section 75 (breach of immaterial warranty)
3. Acts of insurer subsequent to execution of policy – Sec. 170
4. Measure of indemnity – Sec. 171; Sec. 172
a) Open policy
b) Valued policy
c) Co-insurance clause
d) Option to rebuild clause
5. Pledge or transfer of fire insurance policy after loss – Sec. 173
a) General rule – Sec. 21; Sec. 83

See: Philippine Home Assurance v. Court of Appeals, 257 SCRA 468 (1996)
Bachrach v. British American Assurance, 17 Phil. 35 (1910)
Tan Chuco v. Yorkshire Fire and Life Insurance, 14 Phil. 346 (1909)
Malayan Insurance v. Cruz-Arnaldo, 154 SCRA 672 (1987)

C. Casualty Insurance
Title 3, Sec. 174;

1. Definition
2. Two general divisions of casualty insurance
3. Liability insurance
a) Definition
b) Insurable liability
c) Insurrable interest in liability insurance
d) When payable
e) When does injured party have the right to sue the insurer directly?
f) Basis and extent of insurer’s liability
g) Accident and health insurance

Review: Guingon v. Del Monte, 20 SCRA 1043 (1967)

De la Cruz v. Capital Insurance, 17 SCRA 559 (1966)
Pan Malayan v. Court of Appeals, 184 SCRA 54 (1990)
Sun Insurance v. Court of Appeals, 211 SCRA 554 (1990)
Biagtan v. Insular Life, 144 SCRA 58 (1972)
Calanoc v. Court of Appeals, 98 Phil. 79 (1955)
Phil Am Care Health Systems v. Court of Appeals, 379 SCRA 356 (2002)

See: Fortune Insurance v. Court of Appeals, 244 SCRA 308 (1996)

Perla Compania Seguros v. Ramolete, 203 SCRA 487 (1991)
Shafer v. Judge of RTC, 167 SCRA 386 (1986)
Malayan Insurance v. CA, Vallejos et al.,, 165 SCRA 136 (1998)
Heirs of G.Y. Poe v. Malayan Insurance, 584 SCRA 152 (2009)
Vda. De Maglana vs. Consolacion, 212 SCRA 268 (1992)
GSIS v. Court of Appeals, 308 SCRA 559 (1999)
Finman Gen. Assurance v. Court of Appeals, 213 SCRA 493 (1992)
D. Suretyship
 Title 4, Sections 175 – 178;

1. Suretyship defined – Sec. 175

a) Undertakings within scope of suretyship
b) Corporate suretyship
2. Nature of liability – Sec. 176
a) Joint and several with principal
b) Limited to amount of the bond
c) Determined strictly by the terms of the contract
3. Distinction from: property insurance; guaranty
4. Payment of premiums – Sec. 177
5. Types of surety bonds
6. Applicability of Civil Code provisions – Sec. 178

See: Philippine Pryce Assurance v. Court of Appeals, 230 SCRA 164 (1994)
AFP General Insurance v. Molina, 556 SCRA 630 (2008)
Reparations Com. v. Universal Deep Sea Fishing 83 SCRA 764 (1978)
Arranz v. Manila Fidelity, 101 Phil. 272 (1957)
Capital Insurance v. Ronquillo Trading, 123 SCRA 526 (1983)

E. Life Insurance
Title 5, Sections 179 – 183;

1. Definition; nature
a) Sec. 179; Sec. 180
b) Parties involved
c) Distinguished from fire and marine (property) insurance
d) Kinds: ordinary life; term; endowment;
e) Scope
f) Annuity
2 Liability of insurer in case of suicide – Sec. 180-A
3 Right of insured to assign life insurance policy – Sec. 181; Sec. 182
4 Measure of indemnity – Sec. 183
5 Other provisions pertinent to life insurance
a) Grace period for payment of premium – Sec. 227(a)
b) Cash surrender value – Sec. 227(f),(g),(h)
c) Reinstatement – Sec. 227(j)
d) Industrial life insurance – Sec. 229; Sec. 230