Professional Documents
Culture Documents
(1950)
G.R. No. L-1669 August 31, 1950
Lessons Applicable: General Principles on Insurance (Insurance)
FACTS:
Case 1:
o The life of Arcadio Constantino was insured with Asia Life
Insurance Company (Asia) for a term of 20 years with Paz Lopez
de Constantino as beneficiary. The first premium covered the
period up to September 26, 1942.
o After the first premium, no further premiums were paid. The
insured died on September 22, 1944.
o Asia Life Insurance Company, being an American Corp., had to
close its branch office in Manila by reason of the Japanese
occupation, i.e. from January 2, 1942, until the year 1945.
Case 2:
o Spouses Tomas Ruiz and Agustina Peralta. Their premium were
initially annually but subsequently changed to quarterly. The
last quarterly premium was delivered on on November 18, 1941
and it covered the period until January 31, 1942.
o Upon the Japanese occupation, the insurer and insured were not
able to deal with each other
o Because the insured had borrowed on the policy P234.00 in
January, 1941, the cash surrender value of the policy was
sufficient to maintain the policy in force only up to September 7,
1942.
o Tomas Ruiz died on February 16, 1945 with Agustina Peralta
as beneficiary. Her demand for payment was refused on the
ground of non-payment of the premiums.
Plaintiffs: As beneficiaries, they are entitled to receive the proceeds of
the policies minus all sums due for premiums in arrears. The non-
payment of the premiums was caused by the closing of Asia's offices in
Manila during the Japanese occupation and the impossible
circumstances created by war.
lower court: absolved Asia