INSURANCE LAW Course Outline Atty. Mary Ann L, Reyes 1 Introduction A. History of insurance B, Laws governing insurance Read: 1 2 Read: OMI AAR wHE Article 739, 2011, 2012-2017, 2186, 2207, New Civil Code Insurance Code, RA 10507 (amending PD 612 as amended) Family Code Section 185, Corporation Code GSIS Act, SSS Act RA 5756 EO 250 (July 25, 1987) RA 3591 (PDIC Law) RA 9829 (Pre-Need Code) 0. EO 192 (HMOs) Enriquez vs. Sunlife Assurance, 41 Phil 269 (1920) Insular Life vs. Ebrado, 80 SCRA 181 (1977) Filipinas-Compania de Seguros de Nava, 17 SCRA 210 (1966) General concept of insurance Section 2, RA 10607 Test of insurance : White Gold Marine Services vs. Pioneer Insurance, GR No. 154514, 28 July 2005; Philamcare Health Services Inc. vs. CA, 379 SCRA 356, 3 4, 5 6 Read: Suretyship (Sec. 2, RA 10607) Pre-need plans (See Securities Regulation Code) Variable contracts (Sec. 238, RA 10607) Doing an insurance business (Sec. 2, RA 10607) : Fhilippine Health Care Providers vs. Commissioner of Internal Revenue, 600 SCRA 413 7 Mutual insurance companies (See White Gold vs. Pioneer) - See ‘mutual benefit associations under Sec. 403, RA 10607 Characteristics 1. risk distributing device 2. contract of adhesion (fine print rule) Read: Rizal Surety and Insurance Co. vs CA, 336 SCRA 12,1. Blue Cross vs. Olivares (Feb. 12, 2008) Fortune Insurance and Surety Co. vs. CA, 244 SCRA 308 Gulf Resorts vs Philippine Charter Insurance Corp, GR No. 155167, May 16,2005 Eternal Gardens Memorial vs. Philamlife Insurance, GR No. 166245, April 9, 2008 Manila Bankers Life Insurance vs. Aban, GR 175666, July 29, 2013 3. aleatory (Art. 2010, Civil Code) 4. contract of indemnity (Sec. 4, RA 10607) Read: Verendia vs. CA, 217 SCRA 417 4.1, Exceptions to the principle of indemnity 5. _uberrimae fides contract E. Elements of insurance geen Read: Insurable interest (Sec. 10-14, RA 10607) Risk of loss [Sec. 3 (1), Sec. 51 par f, RA 10607] Assumption of risk (Sec. 2, RA 10607) Distribution of losses Premium (Sec. 77, ICP; Sec. 77, RA 10607) Gulf Resorts vs. PCIC Philamlife Health Systems vs. CA F, Subject matter of a contract of insurance G. Event or peril insured against [Sec. 3(1), Sec. 86, RA 10607] H. Risk, defined; pure vs. speculative risk; past event; distinguished from fortuitous event and condition, loss, peril, hazard 1. Right of subrogation (Art. 2207, Civil Code) Read 1. Exceptions to the subrogation rule Manila Mahogany Manufacturing Corp. vs. CA Federal Express Corp. vs. American Home Assurance J. Kinds of Insurance Contract of Insurance A B, Read: Requisites of a contract of insurance (Art. 1318, New Civil Code) Perfection (Art. 1319, NCC) 1. Cognition theory Development Bank of the Philippines vs. CA, GR. 100937, March 21,1994UL 1920 Enriquez vs. Sun Life Insurance of Canada, GR. 15895, Nov. 29, Great Pacific Life Assurance vs, CA, GR Nos. 31845 & 31873, April 30, 1979 c D, E Parties to a contract of insurance (Sec. 6 & 7, RA 10607) the insurer, the insured, the beneficiary See Art. 38, NCC; rule on married women (Sec, 3, RA 10607) rule on minors (Sec. 3, RA 10607) public enemy capacity of party insured (natural, juridical persons) the insurer (Sec, 190-193, RA 10607; Sec. 288, ICP on professional reinsurers; Sec. 403-405, RA 10607, on mutual benefit associations) 8. the beneficiary [Art. 739, 2012, NCC; Read: Insular Life vs. Ebrado; Sec. 11, RA 10607; Sec. 182, RA 10607; Art. 225, Family Code; Sec. 53, RA 10607; Art. 64, Family Code MoMswue Subject matter of insurance (Sec. 3, RA 10607) Insurance not a wagering contract (Sec. 4, RA 10607) Insurable Interest Concept of insurable interest in general Reason for the requirement of insurable interest Insurable interest in life insurance (Sec. 10, 11, 12, RA 10607) Insurable interest in property insurance (Sec. 13-18, RA 10607) 1 Kinds of insurable interest in property Read: Gaisano Cagayan Inc, vs. Insurance Company of North America, GR No. 147839, June 8, 2006) 2. _Insurable interest in case of mortgaged property (Sec. 8- 9, RA 10607) a. standard or union mortgage clause b open mortgage or loss payable clause Read: Geagonia vs. CA, February 6, 1995 RCBC vs, CA, 289 SCRA 292 3. Separate insurable interest of mortgagor and mortgagee (Sec. 53 and 95, RA 10607) 4. When must insurable interest in property exist (Sec. 19, RA 10607) 5. Insurable interest of beneficiary in property, life insurance 6. Effect of change of interest in the thing insured (Sec. 20- 24, 57&58, RA 10607; Art. 1306, NCC)