INSURANCE LAW

COURSE OUTLINE
Atty. Romeo D. Lumagui Jr.

Reference Material: H. De Leon, The Insurance Code of the Philippines Annotated, 2010 ed.

I. Introduction
A. History of Insurance

B. Definition of Insurance

C. Concept of Insurance

D. Functions of Insurance
1. Principal Functions
a. Risk-distributing device
b. Indemnity for loss
2. Subsidiary Functions
a. Stimulates business enterprises
b. Encourages business efficiency and enterprise
c. Promotes loss-prevention
d. Encourages savings
e. Solves social problems
3. Indirect Functions
a. Investment of funds
b. Use of reserve funds
c. Affects prices
d. Used as basis for credit transactions

E. Laws Governing Insurance

II. The Insurance Contract

A. Definition (Sec 2)

B. Nature and Characteristics of Insurance Contracts

1. Consensual
a. Contract of Adhesion
2. Voluntary
3. Aleatory
4. Executed as to insured, executory as to insurer
5. Conditional
 6. Contract of indemnity
7. Personal contract

C. Classifications of Insurance
1. According to Interests Protected
a. First Party v. Third Party Insurance
b. All-Risk v. Specified Risk
2. According to the Code
a. Marine
b. Fire
c. Casualty
d. Suretyship
e. Life
f. Compulsory Motor Vehicle Liability Insurance

D. Construction of Insurance Contract

E. Elements of an Insurance Contract

1. Distinguishing Elements of an Insurance Contract
a. The insured has an insurable interest
b. The insured is subject to a risk of loss by the happening of the designated peril
c. The insurer assumes the risk
d. Such assumption of risk is part of a general scheme to distribute actual losses
among a large group of persons bearing a similar risk (Risk-Distributing Scheme);
and
e. In consideration of the insurer’s promise, the insured pays a premium

Case:
Philippine Health Care Providers Inc v. Commissioner of Internal Revenue, G.R.
No. 167330, September 18, 2009

2. Basic Elements of a Contract

a. Subject matter (Sec 3-4)
b. Consideration
c. Consent

III. Insurable Interest (Sec 10-25, 8)

IV. Concealment (Sec 26-35)

V. Representation (Sec 36-48)

VI. Warranties (Sec 67-76)

VII. Premium (Sec 77-82)

VIII. The Policy (Sec 49-66, 9)

IX. Double Insurance (Sec 93-94)

X. Reinsurance (Sec 95-98)

XI. Claims Settlement Process and Subrogation

A. Loss (Sec 83-87)

B. Notice and Proof of Loss (Sec 88-92)

C. Claims Settlement and Subrogation (Sec 241-244)

XII. Provisions on Specific Classes of Insurance (See Sec 5)

A. Marine Insurance

B. Fire Insurance (Sec 167-173)

C. Casualty Insurance (Sec 174)

D. Suretyship (Sec 175-178)

E. Life Insurance (Sec 179-183)

F. Compulsory Motor Vehicle Liability Insurance (Sec 373-389)

XIII. Case List Relevant to Specific Provision

Section 2
Philamlife v. Ansaldo 234 SCRA 509 (1994)
White Gold v. Pioneer Insurance 464 SCRA 448 (2005)

Section 7
Filipinas Cia de Seguros v. Christern Huenefeld & Co 89 PHIL 54 (1951)

Section 8
San Miguel v. Law Union Rock Insurance Co 40 PHIL 674 (1920)
Saura Import v. Phil Int. Ins. Co 8 SCRA 143; 118 PHIL 150 (1963)
Grepalife v. CA 316 SCRA 677 (1999)

Section 10
Gercio v. Sun Life 48 PHIL 53 (1925)
 Philamcare v. CA 379 SCRA 356 (2002)
Section 11
Insular Life v. Ebrado 80 SCRA 181 (1977)
Philamlife v. Pineda 175 SCRA 416 (1989)

Section 13
Gaisano Cagayan v. Ins. Co of North America 490 SCRA 286 (2006)
Ong Ling Sing v. FEB Leasing 524 SCRA 333 (2007)

Section 14
Traders Insurance v. Golangco 95 PHIL 826 (1954)
Lampano v. Jose 30 PHIL 537 (1915)

Section 15
Lopez v. Del Rosario 44 PHIL 98 (1922)

Section 17
San Miguel v. Law Union Rock Ins 40 PHIL 674 (1920)
Ong Ling Sing v. FEB Leasing 524 SCRA 333 (2007)

Section 18
Sharruf v. Baloise Fire Ins Co 64 PHIL 258 (1937)
Chua v. CA 277 SCRA 690 (1997)

Section 19
Tai Tong Chua Che v. Ins Commission 158 SCRA 366 (1988)

Section 20
Bachrach v. British American Assurance Co 17 PHIL 555 (1910)
San Miguel v. Law Union Rock 40 PHIL 674 (1920)

Section 27
Yu Pang v. CA 105 PHIL 930 (1959)
Grepalife v. CA 89 SCRA 543 (1979)
Gen Insurance v. Ng Hua 106 PHIL 1117 (1960)
Vda. De Canilang v. CA 223 SCRA 443 (1993)

Section 28
Fieldman’s Insurance v. Songco 25 SCRA 70 (1968)

Section 30
Insular Life v. Feliciano 73 PHIL 201 (1941)
Insular Life v. Feliciano 74 PHIL 4681 (1943)
Section 31
Sun Life v. CA 245 SCRA 268 (1995)

Section 33
Ng Gan Zee v. Asian Crusader Life 122 SCRA 461 (1983)

Section 43
Harding v. Commercial Union 38 PHIL 469 (1918)

Section 45
Saturnino v. Philamlife 7 SCRA 316 (1962)
Insular Life v. Feliciano 73 PHIL 201 (1941)
Edillon v. Manila Bankers Life 117 SCRA 766 (1984)

Section 48
Philamcare v. CA 379 SCRA 356 (2002)
Soliman v. US Life 104 PHIL 1046 (1958)

Section 49
Sindayen v. Insular Life 62 PHIL 9 (1935)
Enriquez v. Sun Life 41 PHIL 269 (1920)
Perez v. CA 323 SCRA 613 (2000)

Section 50
CIR v. Lincoln Phil Life 379 SCRA 423 (2002)

Section 52
Lim v. Sun Life 41 PHIL 263 (1923)
Grepalife v. CA 89 SCRA 543 (1979)
San Miguel v. Law Union Rock 40 PHIL 670 (1920)

Section 53
Bonifacio Bros v. Mora 20 SCRA 262 (1967)
Coquia v. Fieldmen’s Ins 26 SCRA 172 (1968)
Insular Life v. Ebrado 80 SCRA 181 (1977)
SSS v. Davac 17 SCRA 863 (1966)
Vda. De Consuegra v. GSIS 37 SCRA 315 (1971)
Heirs of Maramag v. Maramag 588 SCRA 774 (2009)

Section 57
San Miguel v. Law Union Rock 40 PHIL 674 (1920)

Section 58
San Miguel v. Law Union Rock 40 PHIL 674 (1920)
Section 60
Dev Ins Corp v. IAC 143 SCRA 62 (1986)

Section 63
ACCFA v. Alpha Insurance 24 SCRA 151 (1968)
Ang v. Fulton Fire Insurance 2 SCRA 945 (1961)
New Life Enterprises v. CA 207 SCRA 669 (1992)

Section 64
Philamcare v. CA 379 SCRA 359 (2002)

Section 65
Paulino v. Capital Insurance 105 PHIL 1315 (1959)
Saura v. Phil International Co 8 SCRA 143; 118 PHIL 150 (1963)
Malayan Insurance v. Arnaldo 154 SCRA 672 (1987)

Section 70
Ang Giok Chip v. Springfield Fire & Marine Ins 56 PHIL 375 (1931)

Section 74