UNIVERSITY OF CAGAYAN VALLEY – COLLEGE OF LAW

Balzain, Tuguegarao City, Cagayan, 3500 Philippines

(078) 377-4618
ucv_tuguegarao@yahoo.com

A. COURSE INFORMATION

NO. OF
COURSE TITLE INSURANCE LAW 2 UNITS
UNITS

Friday; 6:45 PM
SCHOOL YEAR 1st Sem, 2022- 2023 (August to December) SCHEDULE
to 8:45 PM

INSTRUCTOR/S MYRA BEATRIZ B. DE LEON

B. COURSE DESCRIPTION

This is a study of the Insurance Code and related laws, including the concept and function of insurance,
the nature and concept of insurance contract, insurable interest, special forms of insurance, the business
of insurance and its regulation. The Course will focus on the Insurance Code of the Philippines (PD No.
162, as amended by Republic Act No. 10607) and related jurisprudence.

C. COURSE OUTLINE AND TARGET SCHEDULE

WEEK TOPIC CODE/JURISPRUDENCE

1-2 GENERAL PROVISIONS Section 1-2 , Insurance Code
• Concept of Insurance; Article 2011, 2207, Civil Code
Subrogation
• Elements of an Insurance What Is Insurance
Contract o White Gold Marine Services, Inc. vs.
• Characteristics and Nature of Pioneer Insurance and Surety
Insurance Contracts Corporation, GR No. 154514, 28 July
- Consensual 2005.
- Voluntary o United Doctors Medical Center v.
- Risk Distributing Device Bernadas, G.R. No. 209468,
- Contract of Adhesion December 13, 2017.
- Aleatory o Mayer Steel Pipe Corporation &
- Unilateral Hongkong Government Supplies
- Personal Department vs. CA et.al, G.R. No.
- Conditional 124050 June 19, 1997.
- Contract of Indemnity
- Contract of utmost good Subrogation
faith o Lorenzo Shipping Corp v. Chubb and
• Doing Insurance Business Sons Inc, G.R. No. 147724 : June 8,
- Involves public interest 2004.
- Principal object and nature o Malayan Insurance Co., vs. Alberto,
test G.R. No. 194320, February 1, 2012.
-Right of insured to recover
o F.F. Cruz and Co., Inc v. CA et. al,
G.R. No. L-52732 August 29, 1988.

Elements
o Philamcare Health Systems, Inc. v.
CA, G.R. No. 125678, March 18,
2002.
 Characteristics
-Risk Distributing Device
o Sps. Tibay vs CA, G.R. No. 119655
May 24, 1996.

-Contract of Adhesion
o Gulf Resorts, Inc. vs. Philippine
Charter Insurance Corporation, G.R.
No. 156167 May 16, 2005.

Burden of Proof/ Interpretation (Contract of

Adhesion)
o Eternal Gardens Memorial Park
Corporation vs. The Philippine
American Life Insurance Company,
G.R. No. 166245, April 9, 2008.
o Stronghold Insurance Company, Inc
vs. Interpacific Container Services
et.al G.R. No. 194328, July 01, 2015.

-Aleatory
o UCPB General Insurance Co, Inc. vs.
Masagana Telemart, Inc. G.R. No.
137172, April 4, 2001.

-Contract of indemnity
o White Gold Marine Services, Inc. vs.
Pioneer Insurance and Surety
Corporation, 464 SCRA 448, GR No.
154514, 28 July 2005.

-Contract of utmost good faith

o Fieldman’s Insurance Co., Inc vs.
Mercedes Vargas vda. De Songco
et.al, G.R. No. L-24833, September
23, 1968.

Doing Insurance Business

o White Gold Marine Services, Inc. vs.
Pioneer Insurance and Surety
Corporation, 464 SCRA 448, GR No.
154514, 28 July 2005.

-Principal Object and Purpose test

o Medicard Philippines, Inc. v. CIR,
G.R. No. 222743, April 5 2017.

-Considered Insurance or not insurance

o Philippine Health Care Providers vs.
CIR, G.R. No. 167330, September 18,
2009.
3-6 THE INSURANCE CONTRACT Section 3-9, Insurance Code
• What May Be Insured Section 20, Insurance Code
- Requisites of a contract of Section 53-56, Insurance Code
insurance Section 10-25, Insurance Code
- Subject Matter of Insurance Section 58, Insurance Code
Contract Section 77-84, Insurance Code
• Parties To The Contract Section 49-52, Insurance Code
-Insurer Section 59-62, Insurance Code
-Insured Section 232, Insurance Code
Parties with Interest:
-Beneficiary What May be Insured/Cannot be Insured
-Assignee - Sections 10, 13-14, 176, Insurance
-Mortgagor/Mortgagee Code (Subject Matter)
• Insurable Interest o Blue Cross Health Care, Inc. vs.
- In Life/Health Olivares G.R. No. 169737, February
- In Property 12, 2008 [health]
- Multiple Or Several o Paramount Insurance Corporation vs.
Interests On The Same Sps. Remonduelaz, G.R. No. 173773,
Property November 28, 2012. [motor
- Change in Insurable vehicle/property
Interest o GSIS vs. CA et.al, G.R. No. 101439
• Premium June 21, 1999. [Casualty insurance]
- Payment of Premium
- Return of Premium PARTIES TO THE CONTRACT
• Policy -Insurer and Certificate of Authority
- Perfection (Sections 190-193, 280, ICP)
- Form
- Rider/Endorsement -Insured (Section 3 & 7. ICP)
- Required Clauses
- Cover Notes -Beneficiary
- Delivery of Policy o The Insular Life Assurance Company,
LTD v. Ebrado, G.R. No. L-44059
October 28, 1977.
o Heirs of Maramag v. Maramag, G.R.
No. 181132, June 5, 2009.

-Assignee (Section 9, IPC)

-Mortgagor/Mortgagee
o Steel Corporation of the Philippines
vs. MAPFRE Insular Insurance
Corporation et.al, G.R. No. 201199,
October 16, 2013.
o Rizal Commercial Banking
Corporation et.al vs. CA, G.R. No.
128833 April 20, 1998. Rizal
Commercial Banking Corporation
et.al vs. CA G.R. No. 128834 April 20,
1998.

INSURABLE INTEREST
-Life
o El Oriente Fabrica de Tabacos, Inc.
vs. Posadas & CIR, G.R. No. 34774,
September 21, 1931.
o Susan Co dela Fuente vs. Fortune
Life Insurance Co., Inc., G.R. No.
224863, December 02, 2020.

Beneficiary of Life Insurance

o The Insular Life Assurance Company,
LTD v. Ebrado, G.R. No. L-44059
October 28, 1977.
 o The Philippine American Insurance
Company vs. Hon. Gregorio G.
Pineda, G.R. No. L-54216 July 19,
1989.
o Heirs of Maramag v. Maramag, G.R.
No. 181132, June 5, 2009.

-Property
o UCPB General Insurance Co., Inc. vs.
Asgard Corrugated Box
Manufacturing Corporation, G.R. No.
244407, January 26, 2021.
o Spouses Cha v. CA (G.R. No.
124520, August 18, 1997)
o Gaisano Cagayan, Inc vs. Insurance
Company of North America, G.R. No.
147839, June 8, 2006.

PREMIUM PAYMENT

o Susana Glaraga vs. Sun Life

Assurance Company of Canada, G.R.
No. 25963. December 14, 1926.
o Pedro Arce vs. The Capital Insurance
& Surety Co, Inc. G.R. No. L-28501
September 30, 1982.
o Sps. Antonio Tibay vs. CA, G.R. No.
119655 May 24, 1996.
o UPCB General Insurance Co., Inc. vs.
Masagana Telemart, G.R. No.
137172, April 4, 2001.
o South Sea Surety and Insurance
Company, Inc. vs. CA, G.R. No.
102253 June 2, 1995.
o Jaime Gaisano vs. Development
Insurance and Surety Corporation,
G.R. No. 190702, February 27, 2017.
o Chartis Philippines Insurance, Inc. vs.
Cyber City Teleservices, Ltd., G.R.
No. 234299, March 3, 2021.

-Return of Premium
o Philippine Phoenix Surety &
Insurance Company vs. Woodworks,
Inc., G.R. No. L-25317 August 6,
1979.
o The Capital Insurance & Surety Co.,
Inc. vs. Plastic Era Co., Inc & CA, G.R.
No. L-22375 July 18, 1975.

POLICY
-Perfection
o Loyola Life Plans, Inc. v. ATR
Professional Life Assurance Corp.,
G.R. Nos. 228402 & 222912, August
26, 2020.
-Delivery of Policy
o Vda. De Sindayen v. Insular G.R. No.
41702, September 4, 1935.
7-8 RESCISSION OF INSURANCE Sections, Insurance Code
CONTRACTS 26-35
- Concealment; Test of 36-47
Materiality of Information 67-76
- Misrepresentations
- Breach of Warranties Concealment
- Exercise of Right to o Bernardo Argente vs. West Coast Life
Rescind or Cancel Insurance Co., G.R. No. L-24899,
i. Right of insurer to rescind March 19, 1928.
ii. Incontestable Clause in o Sunlife Assurance Company of
Life Insurance Canada vs. CA & Sps. Bacani, G.R.
iii. Cancellation of Non-Life No. 105135 June 22, 1995.
Insurance o Ma. Lourdes S. Florendo vs. Philam
Plans, Inc. et. al, G.R. No. 186983,
February 22, 2012.
o Ng Gan Zee vs. Asian Crusader Life
Assurance Corporation, G.R. No. L-
30685. May 30, 1983.
o The Insular Assurance Co., LTD vs.
The Heirs of Alvarez, G.R. No.
207526, October 03, 2018.
o Union Bank of the Philippines vs.
Heirs of Alvarez, G.R. No. 210156,
October 3, 2018.

-Test of Materiality of Information

o Sunlife Assurance Company of

Canada vs. CA, G.R. No. 105135
June 22, 1995.
o Philamcare Health Systems, Inc. vs
CA, G.R. No. 125678, March 18,
2002.
o Thelma vda. De Canilang vs. CA,
G.R. No. 92492 June 17, 1993.

Misrepresentation
o Yu Pang Cheng vs. CA et.al, G.R. No.
L-12465, May 29, 1959.
o Francisca Eguaras vs. The Great
Eastern Life Assurance Company,
LTD., G.R. No. 10436. January 24,
1916.
o Pacific Banking Corporation vs. CA,
G.R. No. L-41014 November 28,
1988.
o The Insular Assurance Co., LTD vs
Heirs of Jose Alvarez, G.R. No.
207526, October 03, 2018.
o Union Bank of the Philippines vs.
Heirs of Alvarez, G.R. No. 210156,
October 3, 2018.

Breach of Warranty
o K.S. Young vs. Midland Textile
Insurance Company, G.R. No. L-
9370, March 31, 1915.
 o Prudential Guarantee and Assurance
Inc vs. Trans-Asia Shipping Lines,
Inc, G.R. No. 151890, June 20, 2006.
o Trans-Asia Shipping Lines, Inc. vs.
Prudential Guarantee and Assurance
Inc., G.R. No. 151991, June 20, 2006.

Right to rescind or cancel

o Saura Import & Export Co., Inc vs.
Philippine International Surety Co.,
Inc, G.R. No. L-15184, May 31, 1963.
o Malayan Insurance Co., Inc. vs.
Gregoria Cruz Arnaldo (as CIR),G.R.
No. L-67835 October 12, 1987.
o The Insular Assurance Co., LTD., vs.
Heirs of Alvarez, G.R. No. 207526,
October 03, 2018.
o Union Bank of the Philippines vs.
Heirs of Alvarez, G.R. No. 210156,
October 3, 2018.

Incontestable Clause in Life Insurance

o Emilio Tan vs. CA, G.R. No. 48049

June 29, 1989
o Manila Bankers Life Insurance
Corporation vs. Cresencia P. Aban,
G.R. No. 175666, July 29, 2013.
o Sun Life of Canada (Phil), Inc vs. Ma
Daisy’s Sibya et.al, G.R. No. 211212,
June 08, 2016.

Cancellation of Non-Life Insurance; Section

64-65, RA 10607

9-10 CLAIM SETTLEMENT AND Sections, Insurance Code

SUBROGATION 64-66
- Claim Settlement; 85-94
Subrogation; Prescription 63 & 397
Of Action 247-251
- Notice And Proof Of Loss Art. 2207, Civil Code
- Guidelines On Claim
Settlement Claim Settlement
- Unfair Claims Settlement; o Stronghold Insurance Co.,Inc vs.
Sanctions Pamana Island Resort Hotel and
Marina Club, Inc., G.R. No. 174838,
June 01, 2016.

-Statute of Limitations
o Paulo Ang vs. Fulton Fire Insurance
Co., et. al, vs. Fulton Fire Insurance
Co., et.al., G.R. No. L-15862, July 31,
1961.
o Sun Insurance Office, LTD., vs. CA,
G.R. No. 89741, March 13, 1991.

-Subrogation Doctrines
 o Eastern Shipping Lines, Inc. vs.
Prudential Guarantee and Assurance,
Inc., G.R. NO. 174116, September
11, 2009.
o Pioneer Insurance & Surety
Corporation vs. CA, G.R. No. 84197
July 28, 1989; Lim vs. CA, G.R. No.
84157 July 28, 1989.
o Oriental Assurance Corporation vs.
Manuel Ong et.al, G.R. No. 189524,
October 11, 2017.
o Vicente Henson Jr., vs. UCPB
General Insurance Co., Inc. G.R. No.
223134, August 14, 2019.
o Pioneer Insurance & Surety
Corporation bs. Carmen G. Tan
(SaveMore), G.R. No. 239989, July
13, 2020.
o Filcon Ready Mixed, Inc et.al vs.
UCPB General Insuance Company,
Inc., G.R. No. 229877, July 15, 2020.

Liability of insurer of Loss

o Finman General Assurance

Corporation vs. CA, G.R. No. 100970
September 2, 1992.
o Fortune Insurance and Surety Co.,
Inc. vs. CA, G.R. No. 115278 May 23,
1995.
o DBP Pool of Accredited Insurance
Companies vs. Radio Mindanao
Network, Inc., G.R. NO. 147039,
January 27, 2006.
o FGU Insurance Corporation vs. CA,
G.R. No. 137775. March 31, 2005;
Estate of Ang Gui vs CA, G.R. No.
140704. March 31, 2005.
o UPCB General Insurance Co., Inc. bs.
Asgard Corrugated Box
Manufacturing Corp, G.R. No.
244407, January 26, 2021.

Notice of Loss
o Travelers Insurance & Surety
Corporation vs. CA, G.R. No. 82036
May 22, 1997.
o Pacific Timber Export Corporation v.
CA, G.R. No. L-38613 February 25,
1982.

11-14 FORMS AND CLASSES OF *syllabus still to be updated at this point*

INSURANCE 95-96
- Double Insurance and 97-100
Over-insurance 101-168
- Reinsurance 169-175
- Marine 176
- Fire 177-180
- Casualty 181-186
 - Suretyship 187-189
- Life 233
- Microinsurance 386-402
- Compulsory Motor
Vehicle Insurance

15 INSURANCE AND ITS 190-306

REGULATION 307-343
- Business of Insurance; 403-423
Requirements 437-439
- Insurance Commissioner
and Its Power

D. RECOMMENDED READING MATERIAL

The Insurance Code of the Philippines Annotated by Hector S. De Leon & Hector M. De Leon, Jr,
(2019)

SUPPLEMENTAL READINGS
As may be assigned.

E. GRADING

ASSESSMENT ASSESSMENT
ACTIVITY WEIGHT

Recitations and Quizzes 25%

Prelim Exam 25%

Midterm Exam 25%

Final Exam 25%

TOTAL 100%

RUBRIC:
COMPLETEL NO
PARTIALLY INCORRECTL
Y INSUFFICIENTL ANSWER
GRADING ANSWERED Y
ANSWERED Y ANSWERED PROVIDE
CRITERIA (6-7 ANSWERED
(8-10 (4-5 POINTS) D
POINTS) (1-3 POINTS)
POINTS) (0 POINT)
Correct in Incorrect in Incorrect in ANY Incorrect in Did not
ALL of the ANY ONE of TWO of the ALL of the provide for
following: the following: following: following: any
Answer/s a) Answer to a) Answer to a) Answer to the a) Answer to answer.
to problem the legal the legal legal issue; the legal issue;
solving and issue; issue; b) Citation of b) Citation of
Q&A items. b) Citation of b) Citation of legal basis; legal basis;
legal basis; legal basis; c) Application of c) Application
legal basis to the of legal basis
facts. to the facts.
 c) Application c) Application
of legal basis of legal basis
to the facts. to the facts.

F. CLASS POLICIES

1. This course is designed to be completed mainly online. Examinations will be conducted onsite.

2. Students are expected to attend at least 80% of all online classes. Attendance will be checked.
Students should indicate their full name in their respective online accounts [Assigned class no.,
Surname, First Name]. Students must inform the Instructor (through their beadle/s) of occasions
during which they encounter internet connectivity issues and are unable to attend online classes.

3. During classes, the students shall set their microphones to mute whenever not speaking to avoid
background noise and distractions for others. If they are called, students should unmute
themselves and/or switch on their cameras when the occasion arises (e.g., recitation).

4. If internet connectivity permits, video should be switched on during each class so that the
presence of both instructors and students is registered and the interaction within the class is
enhanced. However, in case of poor internet connection, students may turn off their video and
close all unnecessary applications in their computer to help improve connectivity.

5. Students are expected to keep up with the course materials and to submit assessments as
required. Punctual submission of requirements is expected of each student. Any late submission
will cause appropriate demerit in grades.

6. Class materials and recordings of any online session may not be reproduced, shared, or reposted
by students without the express written consent of the Instructor. No one is allowed to post any
data on personal social media accounts or use them for other unofficial and unauthorized
purposes. Publicly disseminating, reposting, or resharing any material may be violative of the
Data Privacy Act and other applicable laws, regulations, and policies.

7. Students are expected to maintain the appropriate level of professionalism in all aspects of this
course including, but not limited to, responsible use of technology and social media with online
posts and responses to said posts, quizzes/ assignments, presentations, and other such
interactions with the Instructor and classmates. Students should also maintain appropriate
standards for grammar, spelling, and word choice.

8. Students are expected to observe proper decorum at all times. Each one is required to dress
appropriately or decently every class. Inappropriate behavior which interferes with the class’s
learning experience will not be tolerated and may be subject to disciplinary action.

9. Students are required to uphold intellectual honesty in all class requirements and activities and
adhere to academic integrity. Cheating or any form of intellectual dishonesty will not be tolerated.
Cheating in any requirement will result in a failing mark (for the course) and be subject to
disciplinary proceedings.

10. Consultations may be scheduled with the Instructor.