Insurance Law Outline

SYLLABUS IN
INSURANCE LAW
By:
Dean Sergio M. Ceniza
I. Preliminary Considerations
 Overview of the subject
 Scope and Coverage of the subject
 Law Governing Insurance in the Phils. (R.A. 10607)
II. Basic Concepts in Philippine Insurance Law

 Statutory definition of contract of insurance
 Purposes/Importance of Insurance
 Requisites/Elements of Insurance Contracts
- insured is exposed to risk
- insurer is willing to assume the risk
- payment of premium
- insurable interest
- contribution is part of the general scheme to distribute losses
 Principal Characteristics of Insurance Contracts
- contract of utmost good faith (contractu uberramei fedei)
- contract of indemnity
- aleatory contract
- personal contract
- conditional contract
 Interpretation of Insurance Contracts
 What may be an insurer?
 Who are the parties to a contract of insurance?
-Who may be insurer?
- requirement
- Who is an insured?
- concept of public enemy
- reason for the prohibition of insurance on a public enemy
 Who is a beneficiary?
- types of beneficiary
- effect of the designation of revocable vs. irrevocable beneficiary
- rule on the designation of beneficiary
- rule when the beneficiary predeceased the insured
- rule when the beneficiary kills the insured
- rule on commission of adultery
- is conviction for adultery/concubinage required?
- rule on illegitimate children as beneficiary
III. Concept of Insurable Interest
 Nature of Insurable Interest
 Necessity of Insurable Interest
 Insurable Interest in Life Insurance
 Insurable Interest in Property Insurance
- how is insurable interest in property measured
 Insurable Interest of Creditor on the life or property of the debtor
 When should insurable interest exist
 Stipulation in the policy waiving insurable interest in the property insured
IV. Concept of Concealment

 Insurance contract as a contract of utmost good faith
 Disclosure Requirement (matters that need to be communicated)
 Material Concealment
 Test of Materiality
 When disclosure should be made
 Legal Effect of Material Concealment
V. Representation
 Nature and forms of Representation
 Kinds of Representation
 Time when representation should be made
 Material misrepresentation
 Effects of Material Misrepresentation
 Contestability Clause
 Period of Contestability Clause in Life Insurance Contracts
 Defenses not barred by incontestability Clause
VI. Policy
 Forms of Insurance Policies
 Riders in an insurance policy
 Concept of vauled vs. open vs. running policies
 Agreement limiting the period of action
VII. Warranties
 kinds of warranties
 Effects of breach of warranty
 Exceptions when breach of warranty will not avoid the policy
VIII. Premium
 Nature and necessity of premium in insurance contracts
 Effect of non-payment of premiums
 Instances when insured has the right to recover premiums
IX. Loss
 Concept of Loss
 Liability of insurer in case of loss
 Loss in case of negligence of the insured
X. Notice of Loss
 Meaning of notice of loss
 Insured’s obligation to serve notice and proof of loss
 Period need in giving notice of loss
 Burden of proof of loss
 Effect of non-compliance with notice requirement
XI. Double Insurance

 Meaning of Double Insurance
 Requisites
 Double Insurance vs. Over-Insurance
 Prohibition against Double Insurance
 Rules governing claims for over-insurance by double-insurance
XII. Reinsurance
 Concept of Reinsurance
 Reinsurance vs. Double Insurance
 Reinsurance Treaty
XIII. Classes of Insurance

 Marine Insurance
 Scope of Marine Insurance
 Perils of the Sea vs. Perils of the Ship
 Insurable interest in marine insurance
 loan on bottomry
 insurable interest on expected freightage
 insurable interest in expected profits
 insurable interest of the charterer
 Concealment in marine insurance
 Representation in marine insurance
 Implied warranties in marine insurance
 seaworthiness
 cargoworthiness
 warranty as to nationality or neutrality
 Voyage and Deviation
 Concept of Deviation
 Cases of Deviation
 Proper Deviation
 Effect of Improper Deviation
 Abandonment
 Abandonment in marine insurance
 Requisites for a valid abandonment
 Notice of abandonment
 Effect of non-abandonment
a) Fire Insurance
 Nature of Fire Insurance
 Concept of Fire
 Friendly vs. Hostile Fire
 Effect of alteration of thing insured
 Option to Rebuild Clause
b) Casualty Insurance
 Nature of Casualty Insurance
 Insurable Interest in Liability Insurance
c) Suretyship
 Concept of Suretyship Contract
 Liability of the surety
d) Life Insurance
 Nature of Life Insurance
 Parties to a Life Insurance Contract
 Concept of Life Annuity
 Insurer’s liability in case of suicide
 Contestability Clause
smc/ins.law.syll/1.4
Case List in Insurance Law
Interpretation
1. Gaisano Cagayan, Inc. vs. Insurance Co. of North America, G.R. No. 147839, June 8,
2006
2. Malayan Insurance Corp. vs. CA, G.R. No. 119599, March 20, 1997, 270 SCRA 242, 254
3. Diosdado C. Ty vs. Filipinas Compania De Seguros, et al., G.R. No. L-21821-22, May
31, 1966
4. Gulf Resorts, Inc. vs. Phil. Charter Ins. 485 SCRA 551
5. Simon De La Cruz vs. The Capital Ins. and Surety Inc., G.R. No. L-21574, June 30, 1966
6. The Insular Life Ass. Co., Ltd. vs. Paz Y. Khu, Felipe Y. Khu, Jr., et. al., G.R. No.
195176 April 18, 2016
Beneficiaries
7. Heirs of Loreto C. Maramag vs. Eva Verna De Guzman, et.al., G.R. No. 181132, June 5,
2009
8. Southern Luzon Employees’ Ass. v. Golpeo, et al., 96 Phil. 83
9. Vda. de Consuegra v. GSIS, No. L-28093, January 30, 1971, 37 SCRA 315
10. The Insular Life Ass. Co., Ltd. v. Ebrado, No. L-44059, Oct. 28, 1977, 80 SCRA 181
Insurable Interest
11. Sps. Nilo Cha and Stella Uy Cha, et. al. vs. Court of Appeals , et. al., G.R. No. 124520.
Aug. 18, 1997
12. Gaisano Cagayan, Inc. vs. Ins. Co. of North America, G.R. No. 147839, June 8, 2006
13. Vicente Ong Lim Sing, Jr. vs. FEB Leasing & Finance Corp., G.R. No. 168115, June 8,
2007
Concealment
14. Great Pacific Life Ass. Corp. vs. CA and Medarda V. Leuterio ,G.R. No. 113899. Oct.
13, 1999
15. New Life Enterprises v. CA G.R. No. 94071, March 31, 1992, 207 SCRA 669
16. Ma. Lourdes S. Florendo vs. Philam Plans, Inc., et. al., G.R. No. 186983, Feb. 22, 2012
17. Great Pacific Life Ass. Co. vs. CA and Ngo Hing, G.R. No. L-31845, April 30, 1979
18. Saturnino vs. Phil. American Life 7, SCRA 316, 319
19. Manila Bankers Life Insurance Corp. vs. Cresencia P. Aban, G.R. No. 175666, July 29,
2013
20. Sun Life of Canada (Phils), Inc. vs. Ma. Daisy's. Sibya, et. al., G.R. No. 211212, June 08,
2016
Warranties
21. Qua Chee Gan v. Law Union and Rock Insurance Co., Ltd., 98 Phil. 85 (1955)
Double Insurance
22. Geagonia v. Court of Appeals 241 SCRA 152, 160 (1995)

23. Malayan Ins. Co., Inc. vs. Phils. First Ins. Co., Inc. and Reputable Forwarder Services,
Inc., G.R. No. 184300, July 11, 2012
Notice of Loss
24. Philippine American General Insurance Co., Inc. v. Sweet Lines, Inc., 212 SCRA 194,
August 5, 1992
Premiums
25. Jaime T. Gaisano vs. Development Insurance and Surety Corp., G.R. No. 190702, Feb.
27, 2017
26. Arce v. Capital Insurance & Surety Co., Inc., 117 SCRA 63 (1982)
27. Sps. Antonio A. Tibay , et.al. vs. Court of Appeals ,et.al., G.R. No. 119655. May 24,
1996
28. UCPB Gen. Insurance Co. Inc. vs. Masagana Telamart, Inc. G.R. No. 137172. April 4,
2001
29. American Home Ass. Co. vs. Antonio Chua, G.R. No. 130421. June 28, 1999
30. Makati Tuscany Condo. Corp. v. Court of Appeals, GR. No. 95546, 6 Nov. 1992
Reinstatement
31. Violeta R. Lalican vs. The Insular Life Assurance Co. Ltd, G.R. No. 183526 August 25,
2009
Marine Insurance
32. Aboitiz Shipping Corporation vs. Court Of Appeals, et. al., G.R. No. 121833, Oct. 17,
2008
33. FGU Insurance Corp. vs. The Court of Appeals, et. al., G.R. No. 137775, March 31,
2005
34. Phil. American General Ins. Co., Inc. v. CA, G.R. No. 116940, June 11, 1997, 273 SCRA
262
On Presentation of Policies
35. Malayan Insurance Co., Inc. v. Regis Brokerage Corp., G.R. No. 172156, Nov. 23, 2007,
538 SCRA 681
36. ITCSI vs. FGU Insurance Corp., G.R. No. 161539, June 27, 2008
Subrogation
37. Keppel Cebu Shipyard, Inc. v. Pioneer Ins.., G.R. Nos. 180880-81, Sept. 25, 2009, 601
SCRA 96
38. Malayan Ins. Co., Inc. vs. Rodelio Alberto and Enrico Alberto Reyes, G.R. No. 194320,
Feb.1, 2012
Fire Insurance
39. Uy Hu & Co. v. The Prudential Assurance Co., Ltd. 51, Phil. 231 (1927)
40. Malayan Insurance Co., Inc., vs. PAP Ltd. Co. (Phil. Br.) G.R. No. 200784, Aug. 07,
2013
41. United Merchants Corp. vs. Country Bankers Ins. Corp., G.R. No. 198588 July 11, 2012
Surety
42. Clarita Quiamco vs. Capital Insurance & Surety Co., Inc., G.R. No. 170852 Sept. 12,
2008
43. Stronghold Insurance Co., Inc. vs. Tokyu Construction Co., Ltd., G.R. Nos. 158820-21,
June 5, 2009
44. First Lepanto-Taisho Ins. Corp. vs. Chevron Phils., Inc., G.R. No. 177839, Jan. 18, 2012
On Motor Vehicle Insurance
45. Perla Compania De Seguros, Inc. petitioner, vs. The Court of Appeals G.R. No. 96452
May 7, 1992
Theft Clause
46. Paramount Ins. Corp. vs. Sps. Yves and Maria Teresa Remondeulaz, G.R. No. 173773,
Nov. 28, 2012
47. Alpha Insurance and Surety Co. vs. Arsenia Sonia Castor, G.R. No. 198174, Sept. 2,
2013
Other Insurance Clause

48. Malayan Insurance Co., Inc. vs. Phils. First Insurance Co., Inc. G.R. No. 184300, July 11,
2012
On Mortgage Redemption Insurance
49. Great Pacific Life Ass. Corp. vs. Court of Appeals, et. al., G.R. No. 113899, Oct. 13,
1999
On the Liability of Insurer for Loss Due to Negligence
50. FGU Insurance Corp. vs. The Court of Appeals, et. al., G.R. No. 137775, March 31,
2005

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SYLLABUS IN

II. Basic Concepts in Philippine Insurance Law

IV. Concept of Concealment

XI. Double Insurance

XIII. Classes of Insurance

22. Geagonia v. Court of Appeals 241 SCRA 152, 160 (1995)

On Motor Vehicle Insurance

Other Insurance Clause

On Mortgage Redemption Insurance

On the Liability of Insurer for Loss Due to Negligence

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