**** Warranties

#### Ang Giok Chip vs Springfield

-fire 3%
-any express warranty or condition is always a part of the policy, but, like any
other part of an express contract, may be written in the margin, or contained in
proposals or documents expressly referred to in the policy, and so made a part of
it

#### Young vs Midland Textile

-The defendant had neither been paid nor had issues a policy to cover the increased
risk. An increase of risk which is substantial and which is continued for a
considerable period of time, is a direct and certain injury to the insurer, and
changes the basis upon which the contract of insurance rests.

#### Gen Ins vs Ng Hua

-Violation of the statement which is to be considered a warranty entitles the
insurer to rescind the contract of insurance. Such misrepresentation is fatal.

**** Premium
#### American Home Assurance vs Chua
-An insurer is entitled to payment of the premium as soon as the thing insured is
exposed to the peril insured against. Notwithstanding any agreement to the
contrary, no policy or contract of insurance issued by an insurance company is
valid and binding unless and until the premium thereof has been paid, except in the
case of life or an industrial life policy whenever the grace period provision
applies
-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 therein that it shall not be binding until the
premium is actually paid.

#### Phil Pryce Assurance vs CA

-Sec. 177. The surety is entitled to payment of the premium as soon as the
contract of suretyship or bond is perfected and delivered to the obligor. No
contract of suretyship or bonding shall be valid and binding unless and until the
premium therefor has been paid, except where the obligee has accepted the bond, in
which case the bond becomes valid and enforceable irrespective of whether or not
the premium has been paid by the obligor to the surety

#### Pacific Timber vs CA

-SC upheld Pacific’s contention that said cover not was with consideration. The
fact that no separate premium was paid on the cover note before the loss was
insured against occurred does not militate against the validity of Pacific’s
contention, for no such premium could have been paid, since by the nature of the
cover note, it did not contain, as all cover notes do not contain, particulars of
the shipment that would serve as basis for the computation of the premiums. As a
logical consequence, no separate premiums are required to be paid on a cover note.

#### Makati Tuscany vs CA

-the contract remains valid even if the premiums were paid on installments.
Certainly, basic principles of equity and fairness would not allow the insurer to
continue collecting and accepting the premiums, although paid on installments, and
later deny liability on the lame excuse that the premiums were not prepared in
full.
At the very least, both parties should be deemed in estoppel to question the
arrangement they have voluntarily accepted.

#### Phil Phoenx vs woodworks

-failure to make a payment of a premium or assessment at the time provided for, the
policy shall become void or forfeited, or the obligation of the insurer shall
cease, or words to like effect, because the contract so prescribes and because such
a stipulation is a material and essential part of the contract. This is true, for
instance, in the case of life, health and accident, fire and hail insurance
policies
-The burden is on an insured to keep a policy in force by the payment of premiums,
rather than on the insurer to exert every effort to prevent the insured from
allowing a policy to elapse through a failure to make premium payments.

#### Arce vs Capital

-It is obvious from both the Insurance Act, as amended, and the stipulation of the
parties that time is of the essence in respect of the payment of the insurance
premium so that if it is not paid the contract does not take effect unless there is
still another stipulation to the contrary. In the instant case, the petitioner was
given a grace period to pay the premium but the period having expired with no
payment made; he cannot insist that the respondent is nonetheless obligated to him

**** LOSS
#### Paris-manila perfume vs Phoenix
-Perfumery burn; explosion
-Loss, the immediate cause of which was the peril insured against, if the proximate
cause thereof was NOT excepted in the contract (Insurance)

#### FGU vs CA
-Barge sink beer
-To be exempted from responsibility, the natural disaster should have been the
proximate and only cause of the loss. There must have been no contributory
negligence on the part of the common carrier.

#### Pacific Bank vs CA

#### Malayan Insurance vs Arnaldo

SEC. 77. An insurer is entitled to payment of the premium as soon as the thing
is exposed to the peril insured against. Notwithstanding any agreement to the
contrary, no policy or contract of insurance issued by an insurance company is
valid and binding unless and until the premium thereof has been paid, except in the
case of a life or an industrial life policy whenever the grace period provision
applies.

-There must be prior notice of cancellation to the insured;

-Payment to an agent having authority to receive or collect payment is equivalent
to payment to the principal himself; such payment is complete when the money
delivered is into the agent's hands and is a discharge of the indebtedness owing to
the principal.

**** Reinsurance
#### Equitable Ins. vs. Rural Ins. 4 SCRA 343

#### Philamlife vs. auditor General 22 SCRA 135

-a reinsurance policy is a contract of indemnity one insurer makes with another to
protect the first insurer from a risk it has already assumed. On the other hand, a
reinsurance treaty is merely an agreement between two insurance companies whereby
one agrees to surrender and the other to accept reinsurance business pursuant to
provisions specified in the treaty. Treaties are contracts for insurance;
reinsurance policies or cessions are contracts of insurance.

#### Artex Dev. Corp vs. Wellington Ins

-the insured who is not directly a party or privy to the reinsurance
contractbetween Wellington and Alexander and Alexander Inc., cannot demand
enforcementof such insurance contracts.The Contracts take effect only between the
parties, their assigns and heirs asprovide by Art 1311 of our civil code. Further
it provides that a contract withstipulations pour autrui or in favor of a third
person not a party to the contract, theparties must have CLEARLY and DELIBERATELY
conferred favor upon a thirdperson

#### Gibson vs Revilla ?

Sec. 1238. In an action on a contract of reinsurance, as a general rule the
reinsurer isentitled to avail itself of every defense which the reinsured might
urge in an action by theperson originally insured; . . .

---------------
CONCEALMENT
Insured withholds information of material facts from the insurer
Section 26. A neglect to communicate that which a party knows and ought to
communicate is called a concealment.

reqs:
1) A party knows the fact which he neglects to communicate or disclose to the
other;

2) Such party concealing duty bound to disclose such fact to the other

3) Such party concealing makes no warranty of the fact concealed; and

4) The other party has no means of ascertaining the fact concealed

uberrimae fidae

MISREPRESENTATION

Insured makes erroneous statements of facts with the intent of inducing the insurer
to enter into the insurance contract.

Materiality is determined by the same rules applied in cases of misrepresentation.

Concealment on the part of the insured has the same effect as a misrepresentation
and gives the insurer the right to rescind the contract.

Whether intentional or not intentional, the injured party is entitled to rescind

the contract of insurance on ground of concealment or false representation.

Rules on concealment and representation apply likewise to the insurer since the
contracts of insurance is said to be one of utmost good faith on part of both
parties to the agreement.
--------

What is the test of materiality?

It is determined not by the event, but solely by the probable and reasonable
influence of the facts upon the party to whom the communication is due, in forming
his estimate of the advantages of the proposed contract, or in making his
inquiries. (Sec. 31)

General Provisions
What may be insured
Parties
Insurable Interest
# Concealment
-A neglect to communicate that which a party knows and ought to communicate, is
called a concealment.

# Representation
-A statement made by an applicant for insurance, before the contract is made, which
affects the willingness of the insurer to accept the risk.
-If insurer cannot prove for a period of 2yrs from date of issuance, there is no
rescission of life insurance

# Policy
-written instrument which a contract of insurance is set forth
-riders - countersigned or mentioned in original policy on space provided
Contains:
parties
amount
premium
property or life insured
interest
risks
period
-cover notes; 60 days after cover note, policy shall be issued; extended beyond 60
days with approval of commissioner
-class of persons -> show or pinpoint the intent
-transfer of thing is not transfer of insurance
Open, valued, running
-open - value of thing not agreed upon, but has maximum liability
-valued - agreed value
-running - contemplates successive insurances
-stipulation limiting time for commencing action to less than 1yr is void
-no policy other than life shall be cancelled without prior notice
-notice of cancellation shall be based on the following
-non payment of premium
-conviction of a crime, increasing the hazard insured against
-fraud or material misrepresentation
-reckless acts increasing the hazard
-physical changes of property which makes thing uninsurable
-over-insurance limit
-commissioner determines

# Warranties
-statement in a policy, of a matter relating to the person or thing insured; or to
the risk
-policy not voided when the warranty becomes illegal
-violation of warranty -> rescind
-breach of warranty without fraud exonerate insurer

# Premium
-insurer is entitle to payment of premium as soon as the thing insured is exposed
to the peril insured against
-Pay premium first. Except life or industrial life policy, whenever grace period
applies until 90days apply
-Govt employees insurance through salary deduction
-acknowledgement or receipt of premium is conclusive evidence of payment
-Return of premium: thing insured not exposed to peril; insured surrenders his
policy
-Return of premium if voidable; no return if annulled, rescinded, or denied
-83: cannot exceed total value of thing insured
-84: insurer may contract for future premiums
# Loss
-insurer liable for a loss of which a peril insured was the proximate cause; remote
cause - not liable
-rescue of thing insured
-insurer not liable for willful act of the insured, but not exonerated by
negligence of insured

# Notice of Loss
-Fire insurance -> notice asap. Non-life insurance, commisioner may specify period
of submission of notice of loss

# Double Insurance
-Same person is insured by several insurers in respect to same subject and interest
-Over-insurance - insurers not required to pay whole loss; pro-rata

# Reinsurance
-A contract of reinsurance is one by
insure him against loss or liability
-Reinsurance is presumed contract of
-Original insured has no interest in
which an insurer procures a third person to
by reason of such original insurance.
indemnity against liability, not only damage
contract of reinsurance

XXXXX
-A material representation is one that was relied upon by the insurer in issuing
the policy. Answer to queries
-Concealment is closely related to misrepresentation—it is the failure to disclose
material information.
Reqs:
-the insured knew that the fact was important in regard to the insurance
being applied for;
-there was an intention to defraud the insurer.
-A warranty is a promise by the insurance applicant to do certain things or to
satisfy certain requirements, or, it is a statement of fact that is attested by the
insurance applicant.