INSURANCE

LAW OUTLINE1
First Semester, Academic Year 2018-2019
Atty. Jose Maria G. Hofileña
Atty. Jill Lopez

Codal Topics Cases
Provisions2
to be
Covered

1-2 General Provisions Subrogation Doctrines:

Article 2207 i. Laws governing insurance • Pan Malayan Insurance Corp. v. CA
Civil Code (Insurance Code, Civil Code, (184 SCRA 54)
Special Laws) • Federal Express Corp. v. American
ii. Subrogation (Civil Code) Home Ass. Co. (437 SCRA 50)
iii. Definition • Fireman’s Fund Insurance Co. et al v.
iv. Elements Jamila, Inc. (70 SCRA 23)
v. Nature and Characteristics • FF Cruz & Co., Inc. v. CA (164 SCRA
vi. Distinguished from other 731)
contracts • Rizal Surety & Insurance Co. v. Manila
vii. Doing insurance business Railroad Co. 23 SCRA 205
• Pioneer Insurance & Surety Corp v. CA
(175 SCRA 668)
• Oriental Assurance Corporation v.
Manuel Ong (G.R. No. 189524, Oct
2017)

Insurance Contract Interpretation
Doctrines:

• United Doctors Medical Center v.
Bernadas (G.R. No. 209468, Dec.
2017)
• CCC Insurance Corp. v. CA (31 SCRA
264)
• Assoc. of Baptists for World
Evangelism, Inc. v. Fieldmen’s
Insurance (124 SCRA 618)
• Mayer Steel Pipe Corp. v. CA (273
SCRA 432)
• Great Pacific Life v. CA (G.R. No. L-
31845/G.R. No. L-31878 (1979))
• American Home Ass. V. Tantuco Ent.
(366 SCRA 740)
• Rizal Surety v. CA (336 SCRA 12)

1
The outline is subject to adjustments as circumstances warrant. Please note, in addition, that we
reserve the right to advise the class, from time to time, whether there are cases to be added to the
list or to identify cases that will not be taken up for recitation purposes.
2
Unless otherwise specified, references are to the Insurance Code, RA 10607.
 • Perla Compania de Seguros, Inc. v. CA
(185 SCRA 741)
• Zenith Insurance Corp. v. CA (185
SCRA 398)
• Stronghold Insurance v. Interpacific
Container and Gloria Dee Chong (G.R.
No. 194328; July 1, 2015)

Doing Insurance Business:

• White Gold Marine Services v. Pioneer
Insurance (G.R. No 154514, July 28,
2005)


3-9 The Contract of Insurance What may be insured/insured against?
20
53-56 A. Subject Matter • Guingon v. Del Monte (20 SCRA 1043)
• Eternal Gardens MPC v. Philam (551
i. What may be insured? SCRA 1)
ii. What cannot be insured? • Blue Cross Health Care v. Olivares
(544 SCRA 580)
B. Parties to the Contract • Malayan Insurance v. Regis Brokers
(538 SCRA 681)
i. Insurer • Eastern Shipping v. Prudential (599
ii. Insured SCRA 565)
iii. Beneficiary • Paramount Insurance v. Remondeulaz
iv. Agent or Trustee (686 SCRA 567)
v. Partner or Co-owner • United Merchants v. Country Bankers
vi. Assignee (676 SCRA 382)
vii. Mortgagor/gee
Parties to the Contract

• Valenzuela v. CA (191 SCRA 1)
• RCBC v. CA (289 SCRA 292)
• Palileo v. Cosio (97 Phil 919)
• Great Pacific Life v. CA (316 SCRA 677)

10-25 C. Insurable Interest Life
58
i. Definition and Nature • El Oriente Fabrica de Tabacos v.
ii. Life Posada (56 Phil 147)
• Designation of Beneficiary
• Forfeiture Designation of Beneficiary
iii. Property
• In general • Insular Life v. Ebrado (80 SCRA 181)
• Types • Philam v. Pineda (175 SCRA 416)
• Not insurable • Heirs of Loreto Maramag vs. Maramag
• Measure of indemnity (388 SCRA 774)
iv. When it Must Exist
 v. Effect of a Change in Interest Measure of Indemnity
vi. Void Policies
• Lampano v. Jose (30 Phil 538)
• Tai Tong v. Insurance Com. (158 SCRA
366)
• Spouses Cha v. CA (G.R. No. 124520,
August 1997)
• Delsan Transport Lines v. CA (369
SCRA 24)
• Gaisano Cagayan (490 SCRA 286)

77-84 D. Premium Premium Payment

i. Payment • Glaraga v. Sun Life (49 Phil 737)
ii. Acknowledgment • Arce v. Capital Insurance (117 SCRA
iii. Return 63)
• Makati Tuscany Condo Corp. vs. CA
(215 SCRA 462)
• Areola vs. CA (236 SCRA 643)
• Tibay vs. CA (257 SCRA 126)
• American Home Ass. vs. Chua (309
SCRA 250)
• UCPB General Insurance v. Masagana
Telemart (G.R. No. 137172, June
1999)
• UCPB General Insurance vs. Masagana
Telamart (356 SCRA 307)
• South Sea Surety vs. CA (244 SCRA
744)
• Gaisano v. Development Insurance
(G.R. No. 190702, Feb. 2017)

Return of Premium

• Phoenix v. Woodworks (20 SCRA
1270)
• Capital Insurance v. Plastic Era (65
SCRA 135)
•

49-52 E. The Policy The Policy
59-62
232 i. Form • Gulf Resort Inc. vs. Phil. Charter (458
ii. Delivery SCRA 550)
iii. Rider/Endorsement • Pineda vs. CA (226 SCRA 754)
iv. Required Clauses
v. Cover Notes Delivery of Policy
vi. Kinds of Policies
• Vda. De Sindayen v. Insular (62 Phil
51)

26-35 Rescission/Cancellation of Concealment
36-47 Insurance Contracts
67-76 • Argente v. West Coast (52 Phil 725)
A. General Grounds • Edillion v. Manila Bankers Life (G.R.
No. L-34200, September 1982)
i. Concealment • Canilang v. CA (223 SCRA 443)
• Sunlife v. CA (245 SCRA 268)
• Defined • Saturnino vs. Philam (7 SCRA 361)
• Duty to Communicate • Florendo vs. Philam Plans, Inc. (666
• Test of Materiality SCRA 618)
• Ng Zee vs. Asian Crusader Life Ass.
ii. Misrepresentation (122 SCRA 461)

• Defined Misrepresentation
• Kinds
• Characteristics • Fieldmens’s Insurance v. Vda. De
• Effect of Falsity Songco (23 SCRA 70)
• Test of Materiality • Yu Pang Cheng v. CA (105 Phil 930)
• Eguaras v. Great Eastern (33 Phil 263)
iii. Breach of Warranty • Soliman v. U.S. Life (104 Phil 1046)
• Pacific Banking Corp. v. CA (168 SCRA
• Kinds 1)
• Form
• Effect of omission or breach Breach of Warranty

• Qua Chee Gan vs. Law Union (98 Phil.
85)
• Filipinos Compania de Seguros v. Tan
(85 Phil 379)
• Young v. Midland Textile Co. (30 Phil
617)



48 B. Exercise of Right to Rescind or Right to Rescind or Cancel
64-66 Cancel
85-94 • Saura Import v. Phil. International
63 and 397 i. Right of insurer to rescind (8 SCRA 143)
Art. 2207 ii. Incontestable Clause in Life • Malayan Insurance v. Arnaldo (154
Civil Code Insurance SCRA 672)
iii. Effect of Acceptance of • Areola v. CA (236 SCRA 643)
Premium • Tan v. CA (174 SCRA 403)
iv. Interpretation of Insurance • Great Pacific Life v. CA (316 SCRA
Contracts 677)
• Sun Life Of Canada Vs. Ma. Daisy
C. Cancellation of Non-Life S. Sibya (G.R. No. 211212)
Insurance
Liability of insurer for loss
i. Grounds
ii. Notice • Del Rosario v. Equitable Insurance
iii. Renewal (8 SCRA 343)
• Sun Insurance v. CA (211 SCRA
Loss and Action of the Insured 554)

• Gulf Resorts v. Philippine Charter
A. Liability of insurer for loss Insurance Corp (G.R. No. 156167,
May 2005)
B. Proximate Cause
• Bonifacio Bros. v. Mora (20 SCRA

261)
C. Notice of Loss
• Finman General Assurance v. CA
• Fire Insurance
(213 SCRA 493)
• Proof of Loss
• Fortune Insurance v. CA (244 SCRA
• Effect of failure to secure 308)

• DBP Pool of Accredited Insurance
D. Statute of Limitations
Cos. v. Radio Mindanao Network

(G.R. No. 147039, January 2006)
E. Right of Subrogation
• FGU Insurance Corp. vs. CA (454

SCRA 337)

Notice of Loss

• Travellers Insurance v. CA (G.R.
No. 82036)
• Pacific Timber Export Corp. vs. CA
(112 SCRA 199)

Statute of Limitations

• Ang v. Fulton (2 SCRA 945)
• Sun Insurance v. CA (195 SCRA
193)

Subrogation

• Coastwise Lighterage v. Court of
 Appeals (245 SCRA 796)

95-96 Forms and Classes of Insurance Double/Over-insurance

97-100
101-168 A. Double insurance and Over- • Geagonia vs. CA (241 SCRA 152)
insurance • Pioneer Insurance vs. Yap (61
SCRA 426)
B. Reinsurance • Malayan Insurance Co., Inc. vs.
Phil. First Insurance Co., Inc. (676
C. Marine insurance SCRA 268)

i. Definition Reinsurance
ii. Perils of the sea or ship / Risks
iii. Insurable interest • PHILAM v. Auditor General (22
• Shipowner SCRA 135)
• Freightage
• Charterer Marine Insurance
iv. Concealment
• Stricter duty • PhilamGen vs. CA (273 SCRA 262)
• Effect
v. Representation Perils of the sea or ship / Risks
vi. Implied warranties
• Seaworthiness • Malayan Insurance v. Court of
• Nationality or neutrality Appeals and TKC Marketing (G.R.
vii. The voyage and deviation No. 119599, March 20, 1997)
• Course of sailing • Cathay Insurance v. Court of
• Proper and improper Appeals (151 SCRA 710)
deviation
viii. Loss Insurable Interest
• Kinds
• Actual or constructive total • Filipino Merchants Insurance Co.
loss vs. CA (179 SCRA 638)
• Averages
ix. Abandonment Implied Warranties
• Definition
• Requisites • Delsan Transport Lines, Inc. vs. CA
• Effects of abandonment (369 SCRA 24)
• Acceptance of abandonment
x. Measure of indemnity Loss/Abandonment
• Valued policy
• Open policy • Oriental Assurance Corp. vs. CA
(200 SCRA 459)
• Liabilities of insurer
• Keppel Cebu Shipyard, Inc. vs.
Pioneer Insurance & Surety Corp.
(601 SCRA 96)
• Pan Malayan Insurance v. Court of
Appeals (201 SCRA 382)
• Roque v. IAC (139 SCRA 596)

Measure of Indemnity

 • PhilHome Ass. Corp. vs. CA (257
SCRA 468)

169-175 D. Fire insurance Fire Insurance
176 • Defined
177-180 • Alteration Measure of Indemnity
• Measure of indemnity
• Other insurance clause • Malayan Insurance Co. vs. Cruz
• Transfer or pledge of policy Arnaldo (154 SCRA 672)

E. Casualty insurance Other insurance clause

F. Suretyship • New Life Enterprises v. Court of
• Definition and nature Appeals (G.R. No. 94071, March
• Payment of premium and 31)
perfection
Casualty Insurance

• Sun Insurance Office, Ltd. vs. CA
(211 SCRA 554)
• Biagtan vs. Insular Life Ass. Co.
Ltd. (44 SCRA 58)
• Malayan Insurance v. Court of
Appeals (165 SCRA 536)
• Far Eastern Surety v. de Misa (25
SCRA 662)
• Dela Cruz v. Capital Insurance (17
SCRA 539)
• Biagtan v. Insular Life (44 SCRA 58)
• Phil-Nippon Kyoei, Corp. V. Rosalia
Gudelosao (G.R. No 181375)

Suretyship

• Mercantile Insurance vs. Felipe
Ysmael, Jr. & Co. (169 SCRA 66)
• First Lepanto-Taisho Insurance vs.
Chevron (663 SCRA 309)
• Phi. Pryce Assurance v. Court of
Appeals (230 SCRA 164)
• Capital Insurance & Surety Co.,
Inc. vs. Ronquillo Trading (123
SCRA 526)

181-186 G. Life insurance Life Insurance
187-189 • Defined
386-402 • Kinds • Vda. de Gabriel vs. CA (264 SCRA
• Effect of suicide of insured 137)
• Transfer of policy • Insular Life vs. Feliciano (74 Phil.
• Measure of indemnity 468)
• SunLife Ass. vs. CA (245 SCRA 268)
 • Mandatory clauses • Del Val v. Del Val (29 Phil. 534)
• Industrial life • Pineda v. Court of Appeals (226
SCRA 754)
H. Microinsurance
Compulsory Motor Vehicle Insurance
I. Compulsory motor vehicle
insurance • Villacorta v. Insurance Commission
• Rationale (G.R. No. L-54171, October 28,
• Coverage 1980)
• Liability • Palermo v. Pyramid (161 SCRA
• Claim settlement 145)
• Authorized driver clause • First Integrated Bonding v.
Hernando (G.R. No. 51221, July
31, 1991)
• Perla v. Ancheta, 164 SCRA 145
• Summit Guaranty vs. De Guzman,
(151 SCRA 389)

190-306 The Business of Insurance Claims Settlement
307-343
403-423 A. Regulation, solvency and claims • Stronghold Insurance Co., Inc. vs.
437-439 settlement Pamana Island Resort Hotel and
Marina Club, Inc. (G.R. No.
B. Sales agencies and technical 174838)
services
• Insurance agent Adjuster
• Insurance broker
• Resident agent • Luminabao v. IAC (G.R. No. 64677,
• Adjuster September 13, 1990)
• Smith Bell v. Court of Appeals
C. Mutual benefit associations and (G.R. No. 110668, February 6,
trusts for charitable uses 1997)
• Valenzuela v. Court of Appeals,
D. The insurance commissioner (191 SCRA 1)
Administrative
Adjudicatory Insurance Commissioner

• PHILAM v. Ansaldo (234 SCRA 509
(1994)