ENRIQUEZ VS.

SUN LIFE INSURANCE OF CANADA

G.R. No. L-15895; November 29, 1920
FACTS:
This is an action made by the adminstrator of the estate of Joaquin Herrer of P6,000.00 paid by
the deceased for a life annuity on the ground that the contract for a life annuity had not been
perfected.
Joaquin Herrer made an application with Sun Life for a life annuity. He paid the amount of
P6,000.00 to the Manila manager who gave him a "provisional" receipt "subject to medical
examination and approval of the Company's Central Office." The application was forwarded to
the head office in Canada and the policy was issued on December 4, 1917 in Canada.
Meanwhile, on December 18, 1917, Herrer's attorney wrote to the Manila Office stating that
Herrer wanted to withdraw his application to which the office wrote a letter dated November 26,
1917 stating that the policy had already been issued. The letter was received by the attorney on
December 21, 1917. Herrer had died a day earlier on December 20, 1920.
The trial court ruled that the contract had been perfected, hence this appeal.
ISSUES:
Whether or not the policyholder had received notice of the acceptance of his policy;
Whether or not the contract of life annuity was perfected.
HELD:
1. NO. The facts clearly show that Herrer was not informed of the acceptance of the policy
before his death.
2. NO. The contract was not perfected. Art. 1262 provides that acceptance by letter does not bind
the person making the offer except from the time it came to his knowledge. The pertinent fact is
that according to the provisional receipt, the insurance company had to: 1) conduct a medical
examination; 2) had to obtain the head office's approval; and 3) somehow communicate such
approval. It is true that the letter notifying acceptance was deposited in the post office, but the
fact of notification is a rebuttable presumption and the facts clearly show that Herrer never
received the notice of the acceptance before his death.