Professional Documents
Culture Documents
INSURANCE LAW
Judge Manasseh S. Bastes
BACA (U.P.), LLB (USC)
(1st Semester, AY 2018-2019)
Class Rules:
1. Attendance is a must. A total of more than eight (8) class hours shall automatically drop a
student from the roll.
2. Read all assigned laws and jurisprudence. Recitation and quizzes shall constitute 50% of
the grade. The other 50% shall be taken from major examinations.
3. Make-up examinations shall not be allowed, except only in case of medical emergency of
the student. Failure to take the examination, quiz or recitation on the scheduled date or
session shall mean a zero score in that examination, quiz or recitation.
4. All electronic gadgets, books, notes, etc. must be placed below the seat, except writing
pens and blank papers during quizzes and examinations.
COURSE OUTLINE
I. GENERAL
A. Concept, purpose, history
B. Definition of insurance contract - Sec. 2(a), lnsurance Code (lC)1
E. Essential elements
Gulf Resorts v. Philippine Charter lns., GR 156167, 16 May 2005
Philamcare Health Systems v. CA, GR 125678, 18 March 2002
F. Applicability of CivilCode
1 RA 10607 adopted amendments to PD 612 (lnsurance Code) which are intended to strengthen
the insurance industry. Substantive insurance law remains the same. Due to the addition of some
new sections (starting with Sec. 78 allowing government employees to pay premiums through
salary deductions) section references are to the lnsurance Code as amended by RA 10607.
Page 1 of 10
Art. 2011,2012,739, Civil Code
lnsular Life v. Ebrado, GR 44059, 28 October 1977
Zenith lnsurance v. CA, GR 85296, 14 May 1990
G. Subrogation
Article 2027, Civil Code
Page 2 of 10
B. Parties to insurance contracts
De Leon, pages 74-88
3. Mortgagor/mortgagee
Sec. 8 and 9, lC; Sec. 13 and 53, lC
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 lmport & Export v Phil lnt'l Surety, GR L-15184,31 May 1963
Phil. National Bank v CA, GR L-57757,31August 1987
C. lnsurable interest
Sec. 18,25,!C;
De Leon, pp.89-135
2. Beneficiaries
Sections 11 and12,lC
Page 3 of 10
Harvardian College v Gountry Bankers (CA), CA CV 03771, 6 Jan. 6, 1986, CARA 1
Gaisan'o v lnsurance Co. of North America, GR 147839, I 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 lnsurance v Golangco, GR L-6442,21 September 1954
Lopez v del Rosario, GR L-19189,27 November 1922
San Miguel v Law Union Rock lnsurance, GR L-14300, 19 Jan.1920
Spouses Cha v Court of Appeals, GR 124520, 18 August 1997
D. Concealment
Sections 26-35, IC;
De Leon, pages 136-154
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 lnsurance, GR L-30685, 30 May 1983
Colado v lnsular Life, 51 O.G. (No. 12), 1955
E. Representation
Sections 37-48,|C;
De Leon, pages 155-175
Edillon v Manila Bankers Life, GR L-34200,30 September 1982
lnsular 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
De Leon, pages 177-224
Page 4 of 10
[Sec. 233, lC (mandatory provisions - individual life insurance policies)
Sec. 234, lC (mandatory provisions - group life insurance policy)
Sec. 236, 237, lC (mandatory provisions - industrial life insurance)l
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 lnsurance, GR L-23276,29 November 1968
3. Sections 59-62, lC
Development lnsurance v. lAC, GR 71360, 16 July 1986
4. Section 63, lC
ACCFA v Alpha lnsurance, GR L-24566, 29 July 1968
Ang v Fulton Fire lnsurance, GR L-15862, 31 July 1961
Sun lnsurance 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, lC
Saura lmport & Export v Phil lnt'l Surety, GR L-15'184, 31 May 1963
Malayan lnsurance v Cruz-Arnaldo, GR L-67835, 12 October 1987
G. Warranties
Sections 67-76, lC
Page 5 of 10
H. Premium
Sections 77-84,|C
Philippine Phoenix v Woodworks, GR L-22684,31 August 1967
Philippine Phoenix v Woodworks, GR L-25317,6 August 1979
Arce v Capital lnsurance, GR L-28501, 30 September 1985
MakatiTuscany 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 lns. v Chua, GR 130421, 28 June 1999
Great Pacific Life v CA, GR 57308, 28 April 1990
1. Sections 85-89, lC
Paris-Manila Perfume v Phoenix Assurance, GR L-25845,17 Dec 1926
Prats v PhoenixAssurance, 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 2002
Heirs of Coscolluela v Rico General, GR 84628,16 Nov. 1989
FGU lnsurance v CA, GR 137775,31 March 2005 2. Sections 90-94, lC
2. Sections 90-94, lC
J. Double lnsurance
K. Reinsurance
Page 6 of 10
Fieldmen's lnsurance v Asian Surety, L-23447 ,31 July 1970
Pioneer lnsurance v CA, GR 84197,28 July 1989
Gibson v Revilla, GR L41432, 30 July 1979
Artex Development v Wellington lnsurance, GR L-29508, 27 June 1973
D. lmplied warranties
1. Seaworthiness
Sections 115-121, lC
Philippine American General lns. 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, 20011
Madrigal v Hanson, GR L-6106-07, 18 April 1958
Roque v lAC, GR L-66935, 11 November 1985
Page 7 of 10
2. Documents where nationality expressly warranted Section 122,|C
3. Against deviation
De Leon, pages 365-368
Sections 123-128,|C
F. Abandonment
Sections 140-157, lC
Sections 156-166, lC
Jarque v Smith Bell, GR L-32986, November 1930
V. Casualty lnsurance
Page 8 of 10
Sun lnsurance 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 lnsular Life, GR L-25579, 29 March 1972
Finman GeneralAssurance v CA, GR 100970, 2 September 1992
Fortune lnsurance v CA, GR 115278,23 May 1995
Misamis Lumber v Capital lnsurance, GR L-21380, 20 May 1966
Villacorta v lnsurance 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
Shaferv RTC Judge, GR 78848, 14 November 1988
Guingon v Del Monte, GR L-22042,17 August 1967
Malayan lnsurance v CA and Vallqios, et al., GR L-36413, 26 Sept. 1988
Vda de Maglana v Consolacion, GR 60506, 6 August 1992
Vl. Suretyship
Sections 247-251,|C
B. Mutualization
Page 9 of 10
Sections 307, 308, 309 - lnsurance agent
Page 10 of 10