ARELLANO UNIVERSITY SCHOOL OF LAW

INSURANCE LAW
A.Y. 2022-2023
Atty. Wayne A. Tugadi, LLM

Prescribed book: The Insurance Code of the Philippines

By: Hector S. De Leon and Hector M. De Leon, Jr.

I. General

A. Concept, Purpose, and History

B. Definition of insurance contract – Sec. 2(a), IC

C. Nature and characteristics of insurance contracts

D. Requisites for validity in general - Civil Code on validity of contracts

Articles 1318, 1319, 1353, Civil Code
Enriquez v. Sun Life Assurance, GR 15895, 29 Nov. 1920
Perez v. CA, GR 112329, 28 January 2000
De Lim v. Sun Life of Canada, GR 15774, Nov. 29, 1920
Musngi v. West Coast Life, GR 41794, 30 Aug. 1935

E. Essential elements
Gulf Resorts v. Philippine Charter Ins., GR 156167, 16 May 2005
Philamcare Health Systems v. CA, GR 125678, 18 March 2002

F. Applicability of Civil Code

Art. 2011, 2012, 739, Civil Code
Insular Life v. Ebrado, GR 44059, 28 October 1977
Zenith Insurance v. CA, GR 85296, 14 May 1990

G. Subrogation
Article 2027, Civil Code
Fireman's Fund et al v Jamila et al., GR 27427, 7 April 1976
Pan Malayan Insurance v CA, GR 81026, 3 April 1990
SverigesAnfartygs Assurance v Qua Chee Gan, L-22146, 5 Sept 1967
Rizal Surety v Manila Railroad, GR L-24043, 25 April 1968
St. Paul Fire v Macondray, GR L-27796, 25 March 1976
National Union Fire Insurance v. Stolt Nielsen, GR 87958, 26 April 1990
Cebu Shipyard v William Lines, GR 132607, 5 May 1999
Manila Mahogany v CA, GR L-52756, 12 October 1987
F.F. Cruz v CA, GR L-52732, 29 August 1988

H. Construction of insurance contracts

De la Cruz v. Capital Insurance, GR L-21574, 30 June 1966
Sun Insurance Office Ltd v CA, GR 92383, 17 July 1992

Insurance Law Syllabus

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 Ty v Filipinas Cia de Seguros, GR L-21821-22 and L-21824-27, 31 May 1966
Calanoc v CA, GR 8151, 16 December 1955
Biagtan v Insular Life, GR L-25579, 29 March 1972
Finman General Assurance v CA, GR 100970, 2 September 1992
Qua CheeGan v Law Union and Rock, GR L-4611, 17 December1955
Del Rosario v. Equitable Insurance and Casualty, GR L-16215, 29 June 1963
Verendia v CA, GR 75605, 22 January 1993
Fortune Insurance v CA, GR 115278, 23 May 1995
Mis amis Lumber v Capital Insurance, GR L-21380, 20 May 1966

I. The Business of Insurance

Section 2(2), IC
White Gold Marine v Pioneer Insurance, GR 154514, 28 July 2005
Philamlife v Ansaldo, GR 76452, 26 July 1994

II. Contract of insurance

A. What may be insured against

Sections 3-4, IC; De Leon, pages 61-69

B. Parties to insurance contracts

1. Who may be an insurer

Sec. 6, IC

2. Who may be insured

Sec. 7, IC
Filipinas Cia. De Seguros v Christern Huenefeld, GR L-2294, 25 May1951
Constantino v Asia Life, GR L-1669, 31 August 1950
Fidela Sales Gonzaga v Crown Life, GR L-4197, 20 March 1957

3. Mortgagor/mortgagee

Sec. 8 and 9, IC; Sec. 13 and 53, IC

Palileo v Cosio, GR L-7667, 28 November 1955
San Miguel Brewery v Law Union, GR L-14300, 19 January 1920
Gonzalez LaO v Yek Tong Lin Fire, GR 33131, 13 Dec. 1930
Geagonia v. CA, GR 114427, 6 February 1995
Saura Import & Export v Phil lnt'I Surety, GR L-15184, 31 May 1963
Phil. National Bank v CA, GR L-57757, 31 August 1987

C. Insurable interest

Sec. 18 and 25, IC

1. Insurable interest in life insurance

Insurance Law Syllabus

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 Sec. 10, IC; Sec. 184, IC
Lalican v. Insular Life, GR 183526, 25 August 2009
El Oriente v Posadas, GR 34774, 21 September 1931

2. Beneficiaries

Sections 11 and12, IC
Art. 2012 and 739, Civil Code
Insular Life v Ebrado, GR L-44059, 28 October 1977
Vda. De Consuegra v GSIS, GR L-28093, 30 January 1971
Southern Luzon Employees v Golpeo, GR L-6114, 30 October 1954
Heirs of Maramag v Maramag, GR 181132, 5 June 2009
Philamcare v CA, GR 125678, 18 March 2002
Nario V Phil Am Life, GR L-22796, 26 June 1967
Phil Am Life v Pineda, GR L-54216, 19 July 1989
Villanueva v Oro, GR L-2227, 31 August 1948

3. Insurable interest in property insurance

Sections 13 to 18, IC; Section 25, IC

Harvardian College v Country Bankers (CA), CA CV 03771, Jan. 6, 1986, 1
CARA 1
Gaisano v Insurance Co. of North America, GR 147839, 8 June 2006
Commercial Union Assurance v. Lepanto, GR L-52027, 27 April 1982
Harding v Commercial Union, GR L-12707, 10 August 1918
Lampano v Jose, GR L-9401, 30 March 1915
Ong Lim Sing, Jr. v FEB Leasing, GR 168115, 8 June 2007
Traders Insurance v Golangco, GR L-6442, 21 September 1954
Lopez v del Rosario, GR L-19189, 27 November 1922
San Miguel v Law Union Rock Insurance, GR L-14300, 19 Jan.1920
Spouses Cha v Court of Appeals, GR 124520, 18 August 1997

4. When insurable interest must exist

Sections 19, 20, 21, 22, 23, 24, 25, IC

Tai Tong Chua Che v Insurance Com, GR L-55397, 29 February 1988
Bachrach v British American Insurance, L-5715, 20 December 1910
San Miguel v Law Union Rock Insurance, GR L-14300, 19 January 1920

D. Concealment

Sections 26-35, IC;

Argente v West Coast Life, GR L-24899, 9 March 1928
Great Pacific Life v CA, GR L-31845, 30 April 1979
Saturnino v Philippine American Life, GR L-16163, 28 February 1963
Canilang v CA and Great Pacific Life, GR 92492, 17 June 1993
Sun Life v Bacani, GR 105135, 22 June 1995
Yu Pang Cheng v CA, GR L-12465, 29 May 1959
Ng Zee v Asian Crusader Life Insurance, GR L-30685, 30 May 1983
Insurance Law Syllabus
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 Colado v Insular Life, 51 O.G. (No. 12), 1955

E. Representation

Sections 37-48, IC; De Leon, pages 150-170

Edillon v Manila Bankers Life, GR L-34200, 30 September 1982
Insular Life v Feliciano, GR L-47593, 29 December 1943
Tan Chay Heng v West Coast Life, GR L-27541, 21 Nov. 1927
Tan v Court of Appeals, GR 48049, 29 June 1989

F. The Policy

1. Sections 49-52; Sec. 232, IC

[Sec. 233, IC (mandatory provisions - individual life insurance policies)
Sec. 234, IC (mandatory provisions - group life insurance policy)
Sec. 236, 237, IC (mandatory provisions - industrial life insurance)]
Pacific Banking v CA, GR L-41014, 28 November 1988
Oriental Assurance v Court of Appeals, GR 94052, 9 August 1991
Perez v CA, GR 112329, 28 January 2000
Enriquez v Sun Life, GR L-15895, 29 November 1920
Tang v CA, GR L-48563, 25 May 1979
Rizal Commercial Banking v CA, GR 128833, 20 April 1998
Great Pacific Life CA, GR L-31845, 30 April 1979
De Lim v Sun Life of Canada, GR 1577 4, 29 Nov 1920

2. Sections 53-58, IC
Bonifacio Brothers v Mora, GR L-20853, 29 May 1967
Heirs of Maramag v Maramag, GR 181132, 5 June 2009
Coquia v Fieldmen's Insurance, GR L-23276, 29 November 1968

3. Sections 59-62, IC
Development Insurance v. IAC, GR 71360, 16 July 1986

4. Section 63, IC
ACCFA v Alpha Insurance, GR L-24566, 29 July 1968
Ang v Fulton Fire Insurance, GR L-15862, 31 July 1961
Sun Insurance CA, GR 89741; 13 March 1991
Pacific Banking v CA, GR L-41014, 28 November 1988
Lopez v Cia de Seguros, GR L-19613, 30 April 1966

5. Sections 64-66, IC
Saura Import & Export v Phil lnt'I Surety, GR L-15184, 31 May 1963
Malayan Insurance v Cruz-Arnaldo, GR L-67835, 12 October 1987

G. Warranties

Sections 67-76, IC
Sta. Ana v Commercial Union Insurance, GR L-32889, 20 Nov. 1930
Ang Giok Chip v Springfield Fire & Marine, GR L-33637, 31 December 1931
Insurance Law Syllabus
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 Young v Midland Textile, GR L-9370, 31 March 1915
American Home Assurance v Tantuco, GR 138941; 6 October 2001
Qua Chee Gan v Law Union & Rock Insurance, GR L-4611, 17 Dec. 1955
Fieldman's Insurance v Songco, GR 24833, 23 September 1968
Pioneer Insurance v Yap, GR L-36232, 19 Dec. 1974
Prudential Guarantee v Trans Asia, GR 151890, 20 June 2006
General Insurance v Ng Hua, GR L-14373, 30 January 1960

H. Premium

Sections 77-84, IC
Philippine Phoenix v Woodworks, GR L-22684, 31 August 1967
Philippine Phoenix v Woodworks, GR L-25317, 6 August 1979
Arce v Capital Insurance, GR L-28501, 30 September 1985
Makati Tuscany v CA, GR 95546, 6 November 1992
Tibay v CA, GR 119655, 24 May 1996
UCPB General V Masagana Telamart, GR 137172, 15 June 1999 and UCPB
General v Masagana Telamart, GR 137172, 4 April 2001
American Home Ins. v Chua, GR 130421, 28 June 1999
Great Pacific Life v CA, GR 57308, 28 April 1990

I. Loss and Notice of Loss

1. Sections 85-89, IC

Paris-Manila Perfume v Phoenix Assurance, GR L-25845, 17 Dec 1926

Prats v Phoenix Assurance, GR L-28607, 21 February 1929
East Furniture v Globe & Rutgers Fire, L-35848, 57 Phil 576 (1929)
Country Bankers v Lianga Bay Multipurpose, GR 36914, 25 January
Heirs of Coscolluela v Rico General, GR 84628, 16 Nov. 1989
FGU Insurance v CA, GR 137775, 31 March 2005

2. Sections 90-94, IC

Malayan Insurance v Cruz Arnaldo, GR L-67835, 12 October 1987

Yu Ban Chan v Fieldmen's Insurance, GR L-19851, 29 June 1965
Go Lu v Yorkshire Insurance, G.R. No. L-18090, 25 July 25 1922
Pacific Banking v CA, GR L-41014, 28 November 1988
Pacific Timber v CA, GR L-38613, 25 February 1982
Phil. Charter Ins. v Chemoil Lighterage, GR 136888, 29 June 2005

J. Double Insurance

Sections 95-96, IC
Geagonia v CA, GR 114427, 6 February 1995
Pacific Bank v CA, L-41014, 28 November 1988
Sta. Ana v Commercial Union Insurance, GR L-32889, 20 Nov. 1930
Pioneer Insurance v Yap, L-36232, 19 December 1974
New Life Insurance v CA, GR 94071, 31 March 1992
Insurance Law Syllabus
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 Emilio Gonzalez La O v Yek Tong Lin, GR L-33131, 13 Dec. 1930
General Insurance v Ng Hua, GR L-14373, 30 January 1960
Union Manufacturing & Republic Bank v Philippine Guaranty, GR L-27932, 30
October 1972

K. Reinsurance

Sections 98-100, IC
Fieldmen's Insurance v Asian Surety, L-23447, 31 July 1970
Pioneer Insurance v CA, GR 84197, 28 July 1989
Gibson v Revilla, GR L-41432, 30 July 1979
Artex Development v Wellington Insurance, GR L-29508, 27 June 1973

III. Marine Insurance

A. Scope

1. What marine insurance includes

Section 101, IC
De Leon, pages 317-330

2. Perils of the ship; perils of the sea; All Risks insurance

Roque v IAC, G.R. No. L-66935 November 11, 1985

La Razon Social Go Tiaoco v Union Insurance, GR 13983, 1 Sep. 1919
ChoaTek Seng v CA & Filipino Merchants, GR84507, 15 March 1990
Filipino Merchants v CA & ChoaTekTeng, GR 85141, 28 Nov. 1989

B. Insurable interest in marine insurance

Sections 102-108, IC
Caltex Phil v Sulpicio Lines, GR 131166, 30 Sept. 1999
San Miguel v Heirs of Sabiniano lnguito, GR 136054, 5 Sept. 2001

C. Concealment and representation in marine insurance

Sections 109-112, IC; Sec. 113-114, IC

D. Implied warranties

1. Seaworthiness

Sections 115-121, IC
Philippine American General Ins. v CA, 116940, 11 June 1997
Caltex Phil v Sulpicio Lines, GR 131166, 30 September 1999
Delsan Transport v CA, [G.R. No. 127897. November 15, 2001]
Madrigal v Hanson, GR L-6106-07, 18 April 1958
Insurance Law Syllabus
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 Roque v IAC, GR L-66935, 11 November 1985

2. Documents where nationality expressly warranted

Section 122, IC

3. Against deviation

De Leon, pages 356-359

Sections 123-128, IC

E. Loss in marine insurance

Sections 129-139, IC
De Leon, pages 359-369
PMC v Union Insurance, GR L-16473, 22 November 1921
Malayan v CA, GR 119599, 20 March 1997
Pan Malayan v CA, GR 95070, 5 September 1991

F. Abandonment

Sections 138-155, IC
Oriental Assurance v CA, GR 94052, 9 August 1991

G. Measure of indemnity in marine insurance

Sections 156-166, IC
Jarque v Smith Bell, GR L-32986, 11 November 1930

IV. Fire Insurance

Sections 169-175, IC
Bachrach v British American Assurance, GR L-5715, 20 Dec. 191 O
Ong Guan Can v Century Insurance, GR L-21196, 6 February 1924
Galian v State Assurance, GR L-8405, 10 February 1915

V. Casualty Insurance

Section 176, IC
Sections 386-402, IC (Comprehensive Motor Vehicle Liability Insurance Pan
Malayan Insurance v CA, GR 81026, 3 April 1990
De la Cruz v. Capital Insurance, GR L-21574, 30 June 1966
Sun Insurance Office Ltd v CA, GR 92383, 17 July 1992
Ty v Filipinas Cia de Seguros, GR L-21821-22 and L-21824-27, 31 May 1966
Calanoc v CA, GR 8151, 16 December 1955
Biagtan v Insular Life, GR L-25579, 29 March 1972
Finman General Assurance v CA, GR 100970, 2 September 1992
Fortune Insurance v CA, GR 115278, 23 May 1995
Misamis Lumber v Capital Insurance, GR L-21380, 20 May 1966
Insurance Law Syllabus
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 Villacorta v Insurance Commission, GR 54171, 28 October 1980
Perla Cia de Seguros v CA, GR 96452, 7 May 1992
Association of Baptists v Fieldmen, GR L-28772, 21 September 1983
Shafer v RTC Judge, GR 78848, 14 November 1988
Guingon v Del Monte, GR L-22042, 17 August 1967
Malayan Insurance v CA and Vallejos, et al., GR L-36413, 26 Sept. 1988
Vda de Maglana v Consolacion, GR 60506, 6 August 1992

VI. Suretyship

Sections 177-180, IC
National Power Corporation v CA, GR L-43706 14 November 1986
Leyson v Rizal Surety, GR L-21250, 31 March 1966
Philippine Pryce Assurance v. CA, GR 107062, 21 February 1994
AFP General Insurance v. Molina, GR 151133, 30 June 2008
Capital Insurance v. Ronquillo Trading, GR L-36488, 25 July 1983

VII. Life Insurance

Sections 181-186; IC
Section 233, IC (mandatory provisions - individual life insurance policies)

VIII. Other provisions

A. Claims settlement

Sections 247-251, IC
Cathay Insurance v CA, GR 85624, 5 June 1989
Zenith Insurance v. CA, GR 85296, 14 May 1990

B. Mutualization

Section 268, IC
Republic v Sun Life, G.R. No. 158085,14 October 2005

C. Insurance agents and brokers

Sections 307, 308, 309 - Insurance agent

Sections 310-311 - insurance brokers

D. Adjusters - Section 332, IC

Actuary - Sec. 344, IC

E. Bancassurance - Sec. 375-377, IC

Insurance Law Syllabus

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