SYLLABUS IN INSURANCE

(2 Units- Third Year)

I. BRIEF DESCRIPTION OF THE SUBJECT

Insurance Law which is part of Mercantile Law as a bar subject

covers the Insurance Code of the Philippines as amended (RA
10607), the Pre-Need Code (RA 9829) and other relevant laws on
the subject.

II. OBJECTIVE

The course aims to introduce to the students the insurance laws of

the Philippines as well as the jurisprudence and other relevant laws
and rules on the subject.

III. OUTLINE

Topic Laws/Provisions
1. CONCEPT OF INSURANCE RA 10607
Sections 2 to 9
 Parties
 Elements Cases:
 Characteristics/Nature of
Insurance Contracts  Phil. Health Care
Providers, Inc. vs.
CIR, G.R. No.
167330, Sept. 18,
2009

 Philamcare Health
System, Inc. vs. CA
& Julita Trinos, G.R.
No. 125678, March
18, 2002

 Lalican vs. Insular

Life Assurance Co.,
Ltd. 597 SCRA 159
(2009)

 Alpha Insurance
and Surety Co. vs.
Castor, G.R. No.
198174, Sept. 2,
2013

 Fortune Medicare
Inc. vs. Amorin,
G.R. No. 195872 ,
March 12, 2014

 Jaime T. Gaisano
vs. Dev. Insurance
& Surety Corp.,
G.R. No. 190702,
 Feb. 27, 2017

 Heirs of Loreto
Maramag vs. Eva
Verna de Guzman
Maramag, et al.,
G.R. No. 181132,
June 5, 2009

 Tibay vs. Court of

Appeals, 257 SCRA
126 (1996)

 Malayan Insurance
Co., Inc. vs.
 Perfection of the Contract Gregoria Cruz
of Insurance Arnaldo, in her
- Offer and Acceptance capacity as
- Delay in Acceptance Insurance
Commissioner, et
al., G.R. No. L-
67835, Oct. 12, 1987

 People vs. Yip Wai

Ming, G.R. No.
120959, Nov. 14,
1996

 Grepalife vs. CA,

G.R. No. L-31845,
April30, 1979
2. INSURABLE INTEREST Sections 10 to 25

 Concept  Philam Health Care

 Insurable Interest in Life System vs. CA, 379
Insurance SCRA 356 (2002)
 Insurable Interest in
Property Insurance  Lalican vs. Insular
 When insurable interest Life Assurance Co.,
must exist Ltd. 597 SCRA 159
(2009)

 El Oriente Fabrica
de Tabacos vs.
Posada (56 Phil 147
(1931)

 Sps. Nilo Cha &

Stella Uy Cha vs.
CA,GR No. 124520,
Aug. 18, 1997

 Malayan Insurance
Co. vs. PAP Co.
(Phil Branch), GR
No. 200784, Aug. 07,
2013
3. PREMIUM Sections 77 to 84
 Effect of non-payment  Capital Insurance
 When binding even if & Surety Co.,Inc.
unpaid vs. Plastic Era Co.,
 Lapse of Life Insurance Inc., G.R. No. L-
Policy 22375, July 18, 1975
- How to prevent
 Return of Premium  Phil. Phoenix
 Rebate of Premium Surety & Ins. Co.
vs. Woodwork,
Inc., G.R. No. L-
25317, Aug. 6, 1979

 Pacific Timber
Export Corp. vs.
CA, et al., G.R. No.
L-38613, Feb. 25,
1982

 Arturo Valenzuela
et al. vs. CA, et al.,
G.R. No. 83122, Oct.
19, 1990

 Phil. Pryce
Assurance Corp. vs.
CA, et al., G.R. No.
107062, Feb. 21,
1994

 American Home
Assurance vs.
Antonio Chua, G.R.
No. 130421, June 28,
1999

 UCPB Gen
Insurance Co., Inc.
vs. Masagana
Telemart, Inc., G.R.
No. 137172, April 4,
2001

 Makati Tuscany
Condominium
Corp.vs. CA, 215
SCRA 463 (1992)

 Jose Marques &

Maxilite Tech,
Inc.vs. Far East
Bank & Trust Co.,
et al., G.R. No.
171379, Jan. 10,
2011

 PHILAM Insurance
Co., Inc., Now
Chartis Phil
 Assurance, Inc. vs.
PARC Chateau
Condo Unit Owners
Assoc., Inc. and/or
Eduardo B. Colet,
G.R. No. 201116,
March 4, 2019
4. POLICY Sections 49 to 66
Article 1403, Civil Code
 Basic Provisions
 Riders  Grepalife vs. CA,
 Contract of Adhesion G.R. No. L-31845,
 Cover Notes April 30, 1979
 Cancellation
 Rescission  Stokes vs. Malayan
 Renewal Insurance Co., Inc.,
 Reformation G.R. No. L-34768,
Feb. 28, 1984

 Capital Insurance
& Surety Co. vs.Del
Monte Motors, Inc.,
G.R. No. 159979,
Dec. 15, 2015
5. RISKS Sections 26 to 48

 Concealment  GREPALIFE Co. vs.

 Representation CA, G.R. No. L-
 Warranties 31845, April 30, 1979
 Other devices
 Incontestable Clause  Ng Gan Zee vs.
 War Limitation Rider /War Asian Crusader Life
clause Assurance Corp.,
G.R. No. L-30685,
May 30, 1983

 New Life Ent. &

Julian Sy vs. CA, et
al.,G.R. No. 94071,
March 31, 1992

 Sunlife Assurance
Co. of Canada vs.
CA, et al., G.R. No.
105135, June 22,
1995

 Saturnino vs.
PhilAm Life (7 SCRA
316, 1963)

 Thelma vda. De
Canilang vs. CA &
Grepalife, 223 SCRA
443, 1993

 The Insular Life

Assurance Co., Ltd.
Vs. Heirs of
 Alvarez, G.R. Nos.
207526 & 210156,
Oct. 3, 2018

 Ma. Lourdes S.
Florendo vs.
PhilAm Plans, Inc.,
et al., G.R. No.
186983, Feb. 22,
2012

 Emilio Tan vs. CA,

G.R. No. 48049, June
22, 1989

 Manila Bankers Life

Insurance Corp.vs.
Cresencia P. Aban,
G.R. No. 175666,
July 29, 2013

 Qua Chee Gan vs.

Law Union, 98
Phil85 (1955)

 Malayan Insurance
Co., Inc. vs. PAP
Co., Ltd., G.R. No.
200784, Aug. 7, 2013

 New Life
Enterprises vs. CA,
207 SCRA 669

 Young vs. Midland

Textile Insurance
Co.,30 Phil 617

 Bachrach vs.
British American
Assurance Co.,15
Phil 555
6. LOSS AND NOTICE OF Sections 85 to 94
LOSS
 FGU Insurance
 Notice of Loss ) Defects Corp. vs. CA, 454
 Proof of Loss ) SCRA 351
 Effect of delay
 United Merchants
Corp. vs. Country
Bankers Insurance
Corp., G.R. No.
198588, July 11,
2012

 Finman Gen.
Assurance vs. CA,
361 SCRA 214, 2001
  Tan It vs. Sun
Insurance, 51 Phil
212

 Industrial
Personnel &
Management
Services, Inc. vs.
Country Bankers
Insurance Corp.,
G.R. No. 194126,
Oct. 17, 2018



7. CLAIMS SETTLEMENT Perla Compania De
Seguros, Inc. vs. CA, G.R.
 Unfair Claims No. 78860,May 28, 1990
 Fraudulent Claim
 Prescriptive Period

8. SUBROGATION Malayan Insurance Co. v.

 Requisites Alberto, G.R. 194320, Feb.
 Limitations 1, 2012
 Effect of Prescription

9. DOUBLE INSURANCE Sections 95 & 96

 Requisites  Armando Geagonia

 Over insurance by Double vs. CA, et al., G.R.
Insurance No. 114427, Feb. 6,
 Collateral Source Rule 1995

 Malayan Insurance
Co., Inc. vs.
Phil.First Insurance
Co., Inc. and
Reputable
Forwarder
Services, Inc. GR
No. 184300, July 11,
2012
10. REINSURANCE Sections 97 to 100

 Nature  Gibson vs. Revilla,

 Parties 92 SCRA 219 (1979)
 Difference between double
insurance and co-  Avon Insurance
insurance PLC vs. CA, 278
 Functions SCRA 312 (1997)
 Kinds
  Communication
and Information
System vs. Mark
Sensing Australia,
et al., G.R. No.
192159, Jan. 25,
2017
11.MARINE INSURANCE Sections 101 to 168
  Kinds of Marine Insurance
 Risks insured against CASES:
 Insurable interest
 Concealment  Isabela Roque, et
 Representation al.vs. The IAC, et al.,
 Implied warranties GR No. L-66935, Nov.
 Voyage and deviation 11, 1985
 Loss
 Abandonment  Cathay Insurance Co.
 Measures of Indemnity vs. CA, et al., GR No.
 Averages L-76145, June 30, 1987

 Filipino Merchants
Insurance Co. Inc.vs.
CA,et al., GR No.
85141, Nov. 28, 1989

 Choa Tiek Seng vs.

CA, et al., GR
No.84507, March 15,
1990

 Keppel Cebu
Shipyard, Inc.vs.
Pioneer Insurance &
Surety Corp., 601
SCRA 96

 Mayer Steel Pipe

Corp. vs. CA & South
Sea Surety, 274 SCRA
432 (1997)
12.FIRE INSURANCE Sections 169 to 175

 Concept  Dev. Insurance Corp.

 Property Insured vs. IAC, et al., G.R. No.
 Measure of Indemnity L-71360, July 16, 1998
 Prohibitions
 Co-insurance  Pacific Banking Corp.
 Sound value vs. replacement vs. CA & Oriental
cost value Assurance Corp., 168
 Exceptions SCRA 1 (1988)
 Warranty
 Phil. Home Assurance
Corp. vs. CA, G.R. No.
106999, June 20, 1996

 Malayan Insurance
Co.,Inc. vs. LIN, G.R.
No. 207277, Jan. 16,
2017

13. LIFE INSURANCE Sections 181 to 186

 Concept  Re:Claims for Benefits

 Kinds of Life Insurance of the Heirs of the
 Annuity Late Mario vs.
 Suicide Clause Chanliongco, Adm.
  Accidental Death Benefit Matter No. 190-RET,
Clause Oct. 18, 1977
 Transfer of Policy
 Exception from Exception  The Insular Life
 Insolvency Assurance Co., Ltd.
 Contents of Policy Vs. Carponia T.
Ebrado and PAscuala
vda. De Ebrado,
G.R.No. I-44059, Oct.
28, 1977

 GREPALIFE vs. CA,

G.R. No. 92383, July 17,
1992

 Tan vs. CA, 174 SCRA

403 ( 1989)

 Sun Insurance Office,

Ltd., vs. CA, G.R. No.
92383, July 17, 1992

 Heirs of Loreto
Maramag vs.
Maramag, G.R.No.
181132, June 5, 2009
14. CASUALTY INSURANCE Section 176,
Insurance MC No. 4-2006
 Casualty Insurance vs.
Accident Insurance  Fortune Insurance &
 Theft & Robbery Insurance Surety Co., Inc. vs.
 Personal Accident & Health CA, et al., G.R. No.
Insurance 115278, May 23, 1995
 Glass Insurance
 Employer’s Liability  Coquia vs. Fieldmen’s
Insurance Insurance Co., Inc. ,
 Motor Vehicle Liability 26 SCRA 178
Insurance
 Compulsory MVLI  Far Eastern Surety &
Trust Co., Inc. vs.
Misa, 25 SCRA 662

 Finman Gen
Assurance Corp.vs.
CA, 213 SCRA 493

 Vda. De Maglana vs.

Hon. Consolacion, 212
SCRA 268, 1992

 The Heirs of George

Y. Poe vs. Malayan
Insurance Co., Inc.,
G.R. No.156302, April 7,
2009

 Jewel Villacorta vs.

Insurance
Commisision, et al.,
 G.R. No. 54171,Oct. 28,
1980

 James Stokes, as
Atty. In fact of Daniel
Stephen Adolfson vs.
Malayan Insurance
Co., Inc., G.R. No. L-
34768, Feb. 24, 1984

 Andrew Palermo vs.

Pyramid Insurance
Co.,Inc. G.R. No. L-
36480, May 31, 1988

 Agapito Gutierrez vs.

Capital Insurance &
Surety Co., Inc., G.R.
No. L-26827, June 29,
1984

 Lao vs. Standard

Insurance Co., Inc.,
409 SCRA 43

 Perla Compania de
Seguros, Inc. vs. Hon.
C. Ancheta, et al., G.R.
No. L-49699,Aug. 8,
1988

15. SURETYSHIP Sections 177 to 180

 Concept Civil Code of the Phil.

 Distinguished from insurance (Articles 2052, 2054, 2082)
and guaranty
 Nature & Extent of Liability  First Lepanto-Taisho
 Parties Ins. Corp. vs. Chevron
 Premium Phil., Inc. G.R. No.
 Kinds of Bonds 177839, Jan. 18, 2012
 Continuing Suretyship
 Reimbursement  NPC vs. CA, et al.,G.R.
 Extinguishment No. L-43706, Nov. 14,
1986

 Finman General
Assurance Corp. vs.
William Inocencio, et
al., G.R. No. 90273-75,
Nov. 15, 1989

 Country Bankers Ins.,

Corp. vs. Antonio
Lagman, G.R. No.
165487, July 13, 2011

16. REGULATION OF Sections 190 to 261

INSURANCE BUSINESS
 Republic vs. Del
  Sources of regulation Monte Motors, Inc.,
 Areas, reasons and bases of G.R. No. 156956, Oct. 9,
regulation 2006
 Financial Regulations
 Regulation of Persons  Elias Garcia vs. NLRC,
involved in the business G.R. No. L-67825, Sept.
 Corporations in distress 4, 1987
 Rate regulation
 Policy Forms 
Pioneer Insurance &
 Sales Practices and Surety Corp.vs. Hon.
Consumer Protection W. Fortun, et al., G.R.
 Anti-money Laundering No. L-44959,April 15,
1987
17. The Insurance Sections 437 to 439
Commissioner
 Malayan Insurance
 Term, authority Co., Inc. vs. Lin, G.R.
 Quasi-judicial functions No. 207277, Jan. 16,
2017


Philam Life Insurance
Co. vs. Ansaldo, 234
SCRA 509
17. PRE-NEED PLANS RA No. 9829 and its IRR

 Parties  Primamanila Plans,

 Kinds Inc. vs. SEC, G.R. No.
 Pre-need Contract 193791, Aug. 6, 2014
 Termination of the Plan
- By Planholder  College Assurance Plan
- By Pre-need company Phil., Inc. vs. Sps. Lao,
 Claims Settlement G.R. No. 193033, Aug. 6,
 Trust Fund 2014
 Regulation of Pre-need
companies
 In distress pre-need
companies

-nothing follows-

 Note: This course outline and the case assignments are based on Atty. Timoteo B.
Aquino’s book on Essentials of Insurance Law (2018 ed.) and the UST Syllabus
on Mercantile Law, respectively.
 For the exclusive use of DVOREF 3-A & 3-B Law Students.

PREPARED BY:

ATTY. GLENNA AURORA A. TUPAZ-ABRIL