Inauraher Law Concepts! L CASE: EMIRIQUEZ WS, SUNLIFE ASSURANCE CO. FACTS: An application for fife insurance was railed. An acceptance wos alsa mailed by the insurer. Before the receipt of the aereptance letter, the insured died. WELD: Follow the Theery af Cognition. A contract fs perfected upon knowledge of the acceptance, There was no perfected Cofftract sinée it was not shown that the acceptance of the application ever came to the knowledge of the applicant What does public enemy mean? To what does it refer? It refers tea country with which the Philippines is-at war and the citizens thereaf. What is the reason why, under the law, a public enemy cannot be insured against? ‘The reaion in obvious. The purpose af war is to eripple the power & exhaust the resources of the enemy, Maya miner vali insurance, provided the beneficiary is amang those mentioned under the law: the minor's estate, the parents, spouse, children, siilings \yenter into a contract of insurance? Jirninor may enter inte a contract of fe, health and accident Suppose the insured is minor, below eighteen years of age, say seventeen and he enters into a contract of property insurance. The insurance company tssues a policy, There & a loss by fire. Can the insurance deny the claim on the ground that the insured is a minor? NO. Acontract entered ints by a minor is nat void, i is only yoidable, therefore vad until anhulled, When ane af the parties is incapacitated, the capatttated party cannot inwoke as ardefense the incapacity of the other party, In other words, in the absence of misrepresentation on the part of the minor, the insurer will be Hable despite the fick that the iniured ise mingr. We can even apply the Principle of estoppel, The insures is estopped from denying the elaim. How about a rmastitd woman? Can she enter inte a contract ef insurance without the consent ef her husband? YES provided that the insurance Is on her lite ar that of her children contract of indemeiity, Ins far. 8 property insurance is concerned The purpate of the insurance contract ix to tndermnify. Therefore, the arnount to be fecovered should never be more than the lois Otherwit#, the contract becomes an instrument for unjust enrichment. Cantract of adhesion: In a contract of insurance, the palicy is ir written form presented to the applicant He either adheres or fejetts the contract, The rule it: hould there be any doubt, ambiguity or obscurity, it any’ of the terms and stigulations of the contract, the same shall be interpreted strictly against the insurer and liberally in fayor of the insured. But If the terms, conditions, and stipulations are. clear, there i ne raom for interpretation in the cate of Palérmo, and some other cates, ot the time of the actident, the one driving hid ear wan the insured himself, He had an expited driver's license. The insurance company denied the claim invoNing the authotied driver clause. According to the insurance company, the under the policy, the insured as draver wad ret authorized, hence, the insurer wa not liable. The Supreme Court said NO. Because at the time of the accident, the one driving the car Was the insured himself. The foregoing requirement does not apy The Insured car was parked somewhere in Makati: It was camanges, Mt was: being driven by someone who had an expired license before it was stolen. The insurance company denied the dain invaking the authorired driver clause, The Supreme Court disagieed. in the fitst place, what should apply i the theft clause, noe the authorized driver clause The fact that the person driving the car before it wos stolen did not have aticense or had anexpired driver's licenve ixof na moment, The clause that should apply isthe thet clause. tn the case of Yilanecta vs. Insurance Commission, 100 SCRA 467. the insured car was invoived in an accident ana! was brought to the repair Shop, Necessarily the owner would have to entrust the Keys of the car ta the owner of theshop or the authorized representative. so thecar after the repair hatt been completed could be road-tested But some ef the employees of the motor shop used the ear in & joy-ride atound Manila, Unfortunately, was invoked in an accident, again the insurance company denied the claim invoking the authorised driver lause: The Supreme Court disagreetl When the inured entruited the keys ta the ovwmer of the repair shop, there was an implied authority piven by the insured wither to the owner of the shop or the latter's employees to drive the car. Secondly, in that case, what should apply & not the authorived driver clause but the theft clauie of the policy. EXCEPTION TO THE RULE: tourists, however, who have an expired mx of 90 days is not under the law, an authorized driver unless he secures a Philippine Driver's License. if the one driving is ather than the insured: |. Who is an-autherized diver? 1. he must be authorized or permitted by the imiured. 2. he must be qualified to drive én accordance with, say, the Land Transportation Cade, and other rules and regulations, must not have been disqualified by any caurt of law, rule or regulation in that behail{LL Principles of Subrogation: tara insured under @ compreherdive policy was involved in an accident. it was the fault. of the other party, Qamage: P20,000.00, What are your remedies? Either vou recover from the insurer or From ‘the party at fault. You cannot recover fromboth, Why nat? Because a contract of insurance is.a contract of indemnity. Wis not ta be used as an instrument for arofit oe gain, Suppose you decide to recower from the insurec, but the intures pays you only P25,000.00. With respect to ‘thot amount, there will be subsagaion, Lis naw the insurer who can recowes this araourt from the party at fault. subrogation i a noemal intident of indemnity insurance. It ihures to the insures without the need of formal assignment ar an express stipulation in the poley ta that effect. The moment the insurer pays the insured, the lnsuiret becoenes a subcoger. in equity 12, Gan the ifsurer's right of subsogation be destroyed? Yes. The insurers right of subrogation can be destroyed when the imiuréd releases the other party ut fautt from liability. Why? Because by releasing the other party, the insured destroy or defeats the inturer's right of subrogation. Hencé, the insurer will demy the claim of the inaured, How ebe can the right of subrogation be destreyed or defented? When the irmurer pays the insured even if the ‘couse of the lows wa not the jak of pail insured again. 13, @ owns a house worth PAM, He has an insurable interest in the house. But B inured the house in hit name, Should ‘there be & leas, can Ml recover? No. Because he has no insurable interest in the house Can A recover? No. Because ‘while A has an ingurable interest in that hours, weh interest wax not covered by the policy, as twas B wha insured ‘the hause. 14, In the same example, 4 insured the house against fire for one year. During the year, there was na fire, there was no joss. Canthere be a refund of the premiums paid? Mo. there can be no recowery, What dost the insured get? ‘What is the considerstion? The consideration on the part of the insurer & the premium paid by the insured. How abaut the insured, what iss Consideration? The protection, the pramise, the undertaking an the part of the insurer ‘to indemnify the insured in ease of loss: That és the consideration on the part af the insured 15, Meaning of the phrase “of any person under a legal obligation to him for the payment of money, of respecting raperty or services, of which death of llness might delay or prevent the perforrmance:* The movie companics, for instance, have insurable interest inthe life/lives and health af the actors and actresses whe are under enontract ‘with them, Why? Because these actors and actresses are under obligation to render services to said movie compares. 16, With respect to the obligation for the: payment of money, there is-the creditor-debtor relationship. & creditor hhas insurable interest: in the life of the debtor, but only to the event of the obligation For instance, the debtor ewes the creditor of PIM in the form of a toan, Can the eredtar insure the life of the delstns? Yes ecause the debtor is under obligation to pay money to the creditor 17, Suppaie € (éréuitary insures the life of D (debtor) for PIM. Before the death of D, the toan had been fully paid bby him. Can D recower? No, because he was rat a party te the contract (Art. 1311, CO). An ingurarice procured by the creditor over the life of the debtor for the benefit of the creditor will not inure ta the benefit of the debtars 18. The creditor is not acting as am agent. Can C recover? No, because hero lonper had insurable interest on the life af D at the tite of D's death Who cat recover? Nobody. 19, Suppose it was D wha insured his own Ste and made C asthe beneficiary, but before D's death, the loan hadi been aid in full, Uhis tiene: Who ean recover? The heiss or legs! representative of D. 20: in the sale of praperty, the vendor, prio to actual delivery, has an insurable interest in the property. In sale ‘with a right to repurchase (parte: de retro), within the period of redemption, the vendor a retro has an ingurable interest in the property because he still has the fight of redemption. The measure of an insueabie interest in siroperty ls the extent to which the insured might be damoilied by loss or injury thereat 21. With respect to a stockholder af a comioration, does he have insurable interest in the corporate assets and braperty? The rule in corporation lw is that a corporation has = persorality distinct aitd separate from those of its stockholders. Hence, any property of the corporation is nat property of its stockhalders. Such property belongs, to the carporation as a distinct and separate entity, Sut a stockholder hasan inchoate interest ta the extent of his ‘shares ar subscription in earporate assets, Ta that extent, a stockholder hax insurable interest in the property of 3 ‘corporation 22. D9 you have an insurable.interest in the fe of your gittriend? No. Mere relationship is mot enough to grant insurable interest in'a person party to auch relationship. Unless she depends on you for support. What bout 2