INSURANCE LAWCOURSE OUTLINEl"t Semester, AY 2015-2016

l. General

A. Concept, purpose, historyB. Definition of insurance contract - Sec. 2(a), lnsurance Code ('lC)lC. Nature and characteristics of insurance contracts

De Leon, lnsurance Code Annotated, pages 16-40 (2010 Ed.)D. Requisites for validity in general- Civil Code on validity of contracts

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

E. EssentialelementsGulf Resorts v. Philippine Charter lns., GR 156167, 16 May 2005Philamcare Health Systems v. CA, GR 125678, 18 March 2002

F. Applicability of CivilCodeArt. 2011,2012,739, Civil Codelnsular Life v. Ebrado, GR 44059, 28 October 1977Zenith lnsurance v. CA, GR 85296, 14 May 1990

G. SubrogationArticle 2027, Civil CodeFireman's Fund et al v Jamila et al., GR27427, 7 April 1976Pan Malayan lnsurance v CA, GR 81026, 3 April 1990SverigesAnfartygs Assurance v Qua Chee Gan, L-22146, 5 Sept 1967Rizal Surety v Manila Railroad, GR L-24043,25 April 1968St. Paul Fire v Macondray, GR L-27796,25 March 1976National Union Fire lnsurance v. Stolt Nielsen, GR 87958, 26 April 1990Cebu Shipyard vWilliam Lines, GR 132607,5 May 1999Manila Mahogany v CA, GR L-52756,12 October 1987F .F . Cruz v CA, GR L-52732, 29 August 1988

H. Construction of insurance contractsDe la Cruz v. Capital lnsurance, GR L-21 574, 30 June 1966Sun lnsurance Office Ltd v CA, GR 92383, 17 July 1992Ty v Filipinas Cia de Seguros, GR L-21821-22 and L-21824-27, 31 May 1966Calanoc v CA, GR 81 51 , 16 Dec,ember 1955Biagtan v lnsular Life, GR L-25579,29 March 1972Finman GeneralAssurance v CA, GR 100970, 2 September 1992Qua CheeGan v Law Union and Rock, GR L-4611,17 December 1955

1RA 10607 adopted amendments to PD 612 (lnsurance Code) which are intended to strengthen theinsurance industry. Substantive insurance law remains the same. Due to the addition of some newsections (starting with Sec. 78 allowing government employees to pay premiums through salarydeductions) section references are to the lnsurance Code as amended by RA 10607.

PhilAm Life v Pineda, GR L-54216, 19 July 1989Villanueva v Oro, GRL-2227, 31 August 1948

3. lnsurable interest in propefi insuranceSections 13 to 18, lC; Section 25, lCHarvardian College v Gountry Bankers (CA), CA CV 03771, 6 Jan. 6,1986,

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

4. When insurable interest must existSections 19, 2A, 2'1, 22, 23, 24, 25, lCTai Tong Chua Che v lnsurance Com, GR L-55397 ,29 February 1988Bachrach v British American lnsurance, L-5715,2A December 1910San Miguelv Law Union Rock Insurance, GR L-14300, 19 January 1920

D. ConcealmentSections 26-35, IC; De Leon, pages 131-149Argente v West Coast Life, GR L-24899, 9 March 1928Great Pacific Life v CA, GR L-31845, 30 April 1979Saturnino v Philippine American Life, GR L-16163, 28 February 1963Canilang v CA and Great Pacific Life, GR 92492,17 June 1993Sun Life v Bacani, GR 105135, 22 June 1995Yu Pang Cheng v CA, GR L-12465, 29 May 1959Ng Zee v Asian Crusader Life lnsurance, GR L-30685, 30 May 1983Colado v lnsular Life, 51 O.G. (No. 12), 1955

E. RepresentationSections 37-48,|C; De Leon, pages 150-170Edillon v Manila Bankers Life, GR L-34200,30 September 1982lnsular Life v Feliciano, GR L-47593, 29 December 1943Tan Chay Heng v West Coast Life, GR L-27541,21 Nov. 1927Tan v Court of Appeals, GR 48049,29 June 1989

F. The Policy1. Sections 49-52; Sec.232, IC

De Leon, pages 171-203[Sec. 233, lC (mandatory provisions - individual life insurance policies)Sec. 234, lC (mandatory provisions - group life insurance policy)Sec. 236, 237, lC (mandatory provisions - industial life insurance)lPacific Banking v CA, GR L-41014,28 November 1988OrientalAssurance v Court of Appeals, GR 94052, 9 August '1991

Perez v CA, GR 112329,28 January 2000Enriquez v Sun Life, GR L-15895, 29 November 1924Tang v CA, GR L48563, 25 May 1979

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Del Rosario v. Equitable lnsurance and Casualty, GR L-16215, 29 June 1963Verendia v CA, GR 75605,22 January 1993Fortune lnsurance v CA, GR 115278,23 May 1995Mis amis Lumber v Capital lnsurance, GR L-21380, 20 May 1966

l. The Business of lnsuranceSection 2(2),lCWhite Gold Marine v Pioneer lnsurance, GR 154514,28 July 2045Philamlife v Ansaldo, GR 76452,26 July 1994

ll. Contract of insurance

A. What may be insured againstSections 3-4, lC; De Leon, pages 61-69

B. Parties to insurance contractsDe Leon, pages 70-851. Who may be an insurer

Sec.6, lC2. Who may be insured

Sec.7, lCFilipinas Cia. De Seguros v Christern Huenefeld, GR L-2294,25 May1951Constantino v Asia Life, GR L-1669, 31 August 1950Fidela Sales Gonzaga v Crown Life, GR L4197,20 March 1957

3. Mortgagor/mortgageeSec. 8 and 9, lC; Sec. 13 and 53, lGPalileo v Cosio, GR L-7667,28 November 1955San Miguel Brewery v Law Union, GR L-14300, 19 January 1920Gonzalez LaO v Yek Tong Lin Fire, GR 33131, 13 Dec. 1930Geagonia v. CA, GR 114427,6 February 1995Saura lmport & Export v Phil lnt'l Surety, GR L-15184,31 May 1963Phil. National Bank v CA, GR L-57757,31August 1987

C. lnsurable interestSec. 18,25,!C; De Leon, pp.85-1301. lnsurable interest in life insurance

Sec. 10, lC; Sec. 184, lCLalican v. lnsular Life, GR 183526, 25 August 2009El Oriente v Posadas, GR 34774, 21 September 1931

2. BeneficiariesSections 11 and12,lCArt.2012 and 739, Civil Codelnsular Life v Ebrado, GR L-44059, 28 October 1977Vda. De Consuegra v GSIS, GR L-28093, 30 January 1971Southern Luzon Employees v Golpeo, GR L-6114, 30 October 1954Heirs of Maramag v Maramag, GR 181132,5 June 2009Philamcare v CA, GR 125678, 18 March 2002Nario V Phil Am Life, GR l-22796, 26 June 1967

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Rizal Commercial Banking v CA, GR 128833,20 April 1998Great Pacific Life CA, GR L-31845, 30 April 1979De Lim v Sun Life of Canada, GR 15774,29 Nov 1920

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

3. Sections 59-62, lCDevelopment lnsurance v. lAC, GR 71360, 16 July 1986

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

5. Sections 64-66, lCSaura lmport & Export v Phil lnt'l Surety, GR L-15'184, 31 May 1963Malayan lnsurance v Cruz-Arnaldo, GR L-67835, 12 October 1987

G. WarrantiesSections 67-76, lCSta. Ana v Commercial Union lnsurance, GR L-32889, 20 Nov. 1930Ang Giok Chip v Springfield Fire & Marine, GR L-33637, 31 December 1931Young v Midland Textile, GR L-9370, 31 March 1915American Home Assurance v Tantuco, GR 138941; 6 October 2001Qua Chee Gan v Law Union & Rock lnsurance, GR L4611,17 Dec. 1955Fieldman's lnsurance v Songco, GR 24833,23 September 1968Pioneer lnsurance v Yap, GR L-36232,19 Dec. 1974Prudential Guarantee v Trans Asia, GR 151890, 20 June 2006General Insurance v Ng Hua, GR L-14373, 30 January 1960

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

l. Loss and Notice of Loss1. Sections 85-89, lC

Paris-Manila Perfume v Phoenix Assurance, GR L-25845,17 Dec 1926Prats v PhoenixAssurance, GR L-28607,21 February 1929East Furniture v Globe & Rutgers Fire, L-35848,57 Phil 576 (1929)Country Bankers v Lianga Bay Multipurpose, GR 36914, 25 January 2002

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Heirs of Coscolluela v Rico General, GR 84628,16 Nov. 1989FGU lnsurance v CA, GR 137775,31 March 2005

2. Sections 90-94, lCMalayan lnsurance v Cruz Arnaldo, GR L-67835, 12 October 1987Yu Ban Chan v Fieldmen's lnsurance, GR L-19851, 29 June 1965Go Lu v Yorkshire lnsurance, G.R. No. L-18090, 25 July 25 1922Pacific Banking v CA, GR L41014,28 November 1988Pacific Timber v CA, GR L-38613,25 February 1982Phil. Charter lns. v Chemoil Lighterage, GR 136888, 29 June 2005

J. Double lnsuranceSections 95-96, lCGeagonia v CA, GR 114427,6 February 1995Pacific Bank v CA, L41014,28 November 1988Sta. Ana v Commercial Union lnsurance, GR L-32889, 20 Nov. 1930Pioneer lnsurance v Yap, L-36232, 19 December 1974New Life lnsurance v CA, GR 94071, 31 March 1992Emilio Gonzalez La O v Yek Tong Lin, GR L-33131, 13 Dec. 1930General lnsurance v Ng Hua, GR L-14373, 30 January 1960Union Manufacturing & Republic Bank v Philippine Guaranty, GR L-27932, 30October 1972

K. ReinsuranceSections 98-100, lCFieldmen's lnsurance v Asian Surety, L-23447 ,31 July 1970Pioneer lnsurance v CA, GR 84197,28 July 1989Gibson v Revilla, GR L41432, 30 July 1979Artex Development v Wellington lnsurance, GR L-29508, 27 June 1973

lll. Marine lnsurance

A. Scope1. What marine insurance includes

Section 101,|CDe Leon, pages 317-330

2. Perils of the ship; perils of the sea; All Risks insuranceRoque v lAC, G.R. No. L-66935 November 11, 1985La Razon Social Go Tiaoco v Union lnsurance, GR 13983, 1 Sep. 1919ChoaTek Seng v CA & Filipino Merchants, GR84507, 15 March 1990Filipino Merchants v CA & ChoaTekTeng, GR 85141, 28 Nov. 1989

B. lnsurable interest in marine insuranceDe Leon, pages 540Sections 102-108, !CCaltex Phil v Sulpicio Lines, GR 131166, 30 Sept. 1999San Miguel v Heirs of Sabiniano lnguito, GR 136054, 5 Sept. 2001

C. Concealment and representation in marine insuranceDe Leon, pages 340-345Sections 1 09-1 12, lC; Sec. 1 13-114, lC

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D. lmplied warranties1. Seaworthiness

Sections 115-121, lCPhilippine American General lns. v CA, 116940, 11 June 1997Caltex Phil v Sulpicio Lines, GR 131166, 30 September 1999Delsan Transport v CA, [G.R. No. 127897. November 15, 20011Madrigal v Hanson, GR L-6106-07, 18 April 1958Roque v lAC, GR L-66935, 11 November 1985

2. Documents where nationality expressly warrantedSection 122,|C

3. Against deviationDe Leon, pages 356-359Sections 123-128,|C

E. Loss in marine insuranceSections 129-139, lCDe Leon, pages 359-369PMC v Union lnsurance, GR L-16473,22 November 1921Malayan v CA, GR 119599, 20 March 1997Pan Malayan v CA, GR 95070, 5 September 1991

F. AbandonmentSections 138-155, lCOrientalAssurance v CA, GR 94052, I August 1991

G. Measure of indemnity in marine insuranceSections 156-166, lCJarque v Smith Bell, GR L-32986, 't1 November 1930

lV. Fire lnsuranceSections 169-175,1CDe Leon, pages 405Bachrach v British American Assurance, GR L-5715, 20 Dec- 1 910Ong Guan Can v Century lnsurance, GR L-21196, 6 February 1924Galian v State Assurance, GR L-8405, 10 February 1915

V. Casualty lnsuranceSection 176, lCDe Leon, pages 446420Sections 386-402, lC (Comprehensive Motor Vehicle Liability InsurancePan Malayan lnsurance v CA, GR 81026, 3 April 1990De la Cruz v. Capital Insurance, GR L-21 574, 30 June 1966Sun lnsurance Office Ltd v CA, GR 92383, 17 July 1992Ty v Filipinas Cia de Seguros, GR L-21821-22 and L-21824-27, 31 May 1966Calanoc v CA, GR 8151, 16 December'1955Biagtan v lnsular Life, GR L-25579, 29 March 1972Finman GeneralAssurance v CA, GR 100970, 2 September 1992Fortune lnsurance v CA, GR 115278,23 May 1995Misamis Lumber v Capital lnsurance, GR L-21380, 20 May 1966

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Villacorta v lnsurance Commission, GR 54171, 28 October 1980Perla Cia de Seguros v CA, GR 96452,7 May 1992Association of Baptists v Fieldmen, GR L-28772,21 September 1983

Shaferv RTC Judge, GR 78848, 14 November 1988Guingon v Del Monte, GR L-22042,17 August 1967Malayan lnsurance v CA and Vallqios, et al., GR L-36413, 26 Sept. 1988Vda de Maglana v Consolacion, GR 60506, 6 August 1992

Vl. SuretyshipSections 177-180, lCDe Leon, pages 421431National Power Corporation v CA, GR L-43706 14 November 1986Leyson v Rizal Surety, GR L-21250, 31 March 1966Philippine Pryce Assurance v. CA, GR 107062,21 February 1994AFP General lnsurance v. Molina, GR 151133, 30 June 20OgCapital lnsurance v. Ronquillo Trading, GR L-36488, 25 July 1983

Vll. Life lnsuranceSections 181-186; lCSectkrn 233, lC (mandatory provisions - individual life insurance policies)

Vlll. Other provisions

A. Claims settlementSections 247-251,|CCathay lnsurance v CA, GR 85624, 5 June 1989Zenith lnsurance v. CA, GR 85296, 14 May 1990

B. MutualizationSection 268, lCRepublic v Sun Life, G.R. No. 158085,14 October 2005

C. lnsurance agents and brokersSections 307, 308, 309 - lnsurance agentSections 310-311 - insurance brokers

D. Adjusters - Section 332, lCActuary - Sec. 344,lC

E. Bancassuran@ - Sec. 375-377,|C