Professional Documents
Culture Documents
ISSUES:
1. WON there was a valid payment of premium,
considering that respondents check was cashed
after the occurrence of the fire
2. WON respondent Chua is guilty of violating
the policy by his submission of fraudulent
documents and non-disclosure of the other
existing insurance contracts
RULING:
1. YES. The general rule in insurance laws is
that unless the premium is paid the
insurance policy is not valid and
binding. The only exceptions are life and
industrial life insurance. Whether payment
was indeed made is a question of fact which
is best determined by the trial court. The
trial court found, as affirmed by the Court of
Appeals, that there was a valid check
payment by respondent to petitioner. Wellsettled is the rule that the factual findings
and conclusions of the trial court and the
Court of Appeals are entitled to great weight
and respect, and will not be disturbed on
appeal in the absence of any clear showing
that the trial court overlooked certain facts or
circumstances which would substantially
affect the disposition of the case. According
to the trial court the renewal certificate
issued to respondent contained the
acknowledgment that premium had been
paid. In the instant case, the best evidence
of such authority is the fact that petitioner
accepted the check and issued the official
receipt for the payment. It is, as well, bound
by its agents acknowledgment of receipt of
payment.
Section 78 of the
explicitly provides:
Insurance
Code
An acknowledgment in a policy or
contract of insurance of the receipt of
premium is conclusive evidence of its
payment, so far as to make the policy
binding, notwithstanding any stipulation