PAMANTASAN NG LUNGSOD NG MAYNILA

COLLEGE OF LAW
INSURANCE LAW
ATTY. IRA PAULO POZON, MBA
2ND SEMESTER, SY 2012-2013
I. GENERAL CONCEPTS
1. INSURANCE
1. Sources
Presidential Decree No.
612 Act No. 2427
Pertinent provisions of the NCC
2. Definition Sec. 2(1), Presidential Decree No. 612.
2. Elements Sec. 2, 3, 12-14, 77 IC
Philamcare Health Systems, Inc. v. Court of Appeals, 379 SCRA
356 (2002);
3. Characteristics
a. Aleatory Art. 2010, NCC ; Sec. 25,
I.C. b. Indemnity Sec. 17, I.C.
c. Personal d.
Unilateral e.
Conditional
4. Perfection Arts. 1318-1319, Civil Code; Secs. 77 and 226, I.C.;
Enriquez v. Sun Life Assurance Co. of Canada, 41 Phil. 269 (1920);
Eternal Gardens Memorial Park Corporation v. Philippine
American Life Insurance Corporation, 551 SCRA 1 (2008)
5. Kinds of Insurance
2. INSURANCE DISTINGUISHED FROM OTHER CONTRACTS
1. Art. 2047, Civil Code; Sec. 2(1), par. 2, I.C.
2. Sec. 3.9, Securities Regulation Code
3. Variable Contracts Sec. 232, I.C.

3. INSURANCE BUSINESS
1. Sec. 2(2), I.C.;
Phil. American Life Insurance Company v. Ansaldo, 234 SCRA 509 (1994)

White Gold Marine Services, Inc. v. Pioneer Insurance Surety

Corporation, 464 SCRA 448 (2005)
4. LAWS GOVERNING INSURANCE
1. I.C. See Sec. 5, I.C.
2. Civil Code Art. 2011, Civil Code; Arts. 43(4), 50 and 64 Family Code; Arts.
739, 2012, 2021-2027, 2186, 2207 Civil Code.
The Insular Life Assurance Company, Ltd. V. Ebrado, 80 SCRA 181 (1977)

3. General Principles on Insurance

Constantino v. Asia Life Insurance Co., 87 Phil. 248 (1950)
4. Special Laws
a. Revised Government Service Insurance Act of 1977
insurance of government employees

covers

b. Social Security Act of 1954 covers insurance of employees in private

employment;
3

c. Property Insurance Law covers insurance of government property;

4

d. R.A. No. 4898 provides life, disability and accident insurance

coverage to barangay officials;
5

e. E.O. No. 250 provides increased insurance benefits for barangay

officials under R.A. No. 4898, as well as members of Sangguniang
Panalalawigan, Panglungsod, and Bayan; and
6

6. PDIC Charter insures deposits of all banks entitled to benefits of

insurance thereunder.
7

5. Corporation Code for insurance corporations; Sec. 185, par. 2, I.C.

E. INTERPRETATION OF INSURANCE CONTRACTS

1
2
3
4
5
6
7

Presidential Decree No. 1146, as amended.

Republic Act No. 1161, as amended.
Republic Act No. 656, as amended by Presidential Decree No. 245.
Republic Act No. 4898, as amended by Republic Act No. 5756.
Executive Order No. 250.
Republic Act No. 3591, as amended.
Batas Pambansa Blg. 68, otherwise known as the Corporation Code of the Philippines.

3
Ty v. First National Surety & Assurance Co., Inc., 1 SCRA 1324 (1961);

Qua Chee Gan v. Law Union and Rock Insurance Co., Ltd., 98 Phil.
85 (1955);
Verendia v. Court of Appeals, 217 SCRA 417 (1993)
Gulf Resorts Inc. v. Philippine Charter Insurance Corporation, 458
SCRA 550 (2005)
Fortune Insurance and Surety Co., Inc. v. Court of Appeals, 244
SCRA 308 (1995)

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II. PARTIES
1. INSURED
1. Art. 1390, Civil Code; Sec. 3 (2 & 4) IC; Art. 73 Family Code; Sec. 3 (35) IC; Art. 38 Civil Code; Sec. 7 ICl Sec. 54-55 IC
Filipinas Compania de Seguros v. Christern Henefeld & Co., 89
Phil. 454 (1951);
2. INSURER
Secs. 184, 185 (1) 262, 280, 390, 6, 186-187, 361-362 I.C.
3. BENEFICIARY
1.

Secs. 53 and 56, I.C.; Art. 1311, Civil Code;

Bonifacio Bros., Inc. v. Mora, 20 SCRA 261 (1967);

Coquia v. Fieldmens Insurance Co., Inc., 26 SCRA 178
(1968); Guingon v. Del Monte, 20 SCRA 1043 (1967)
2. Del Val v. Del Val, 29 Phil. 534 (1915)
3. Rizal Commercial Banking Corporation v. Court of Appeals, 289
SCRA 292 (1998)
Designation of Beneficiary
15 Art. 2012 with Art. 739 Civil Code; Sec. 11 IC; 12 IC; Arts.
43(4), 50, 64, Family Code; Sec. 12, I.C.; Sec. 180, I.C.;
4. In Re: Mario V. Chanliongco, 79 SCRA 364 (1977);
5. Vda. de Consuegra v. Governments Service Insurance System, 37
SCRA 315 (1971);
2. Art. 2012 in relation to Art. 739, Civil Code;
2. The Insular Life Assurance Company, Ltd. V. Ebrado, 80 SCRA 181
(1977);
3. Southern Luzon Employees Ass. V. Golpeo, et al., 96 Phil. 83 (1954);
4. Social Security System v. Davac, et al., 17 SCRA 863 (1966);
5. Gercio v. Sun Life Assurance Co. of Canada, 48 Phil. 53 (1925)
2. Nario v. Philippine American Life Ins. Co., 20 SCRA 434 (1967);
3. Philippine American Life Insurance Company v. Pineda, 175
SCRA 416 (1989)

5
2. Villanueva v. Oro, 81 Phil. 464 (1948)
D. INSURANCE AGENT AND INSURANCE BROKER
1. Sec. 300, 301, 306, I.C.;
3. Aisporna v. Court of Appeals, 113 SCRA 459 (1982)
4. Philippine Health-Care Providers, Inc. v. Estrada, 542 SCRA 616 (2008)
2. Malayan Insurance Co., Inc. v. Arnaldo, 154 SCRA 672 (1987);
3. South Sea Surety and Insurance Co., Inc. v. Court of Appeals, 244
SCRA 744 (1995)

6
III. INSURABLE INTEREST
1. CONCEPT
1. Secs. 3, 4, 18, and 25, I.C.
2. Sec. 10, I.C., Art. 195, Family Code; Sec. 19, 181 IC
Philamcare Health Systems, Inc. v. Court of Appeals, 379 SCRA
356 (2002);
Gercio v. Sun Life Assurance Co. of Canada, 48 Phil. 53 (1925)
Great Pacific Life Assurance Corp. v. Court of Appeals, 316
SCRA 677 (1999)
El Oriente, Fabrica de Tabacos, Inc., v. Posadas, 56 Phil. 147 (1931);

2. IN PROPERTY INSURANCE
1. Secs. 13 and 14, I.C.; Sec. 16, 8 and 9, IC; Art. 2127 Civil Code; Sec.
15 IC, Sec. 6 General Bonded Warehouse Act.
Traders Insurance & Surety Co. v. Golangco, et al., 95 Phil. 824 (1954);

Filipino Merchants Insurance Co., Inc. v. Court of Appeals, 179

SCRA 638 (1989);
Gaisano Cagayan, Inc. v. Insurance Company of North
America, 490 SCRA 286 (2006);
Ong Ling Sing v. FEB Leasing & Finance Corporation, 425
SCRA 333 (2007);
Lampano v. Jose, 30 Phil. 537 (1915)
San Miguel Brewery v. Law Union and Rock Insurance Co., 40
Phil. 674 (1920);
Saura Import & Export Co., Inc. v. Philippine International
Surety Co., Inc., 8 SCRA 143 (1963);
Palileo v. Cosio, 97 Phil. 919 (1955);
Great Pacific Life Assurance Corp. v. Court of Appeals, 316
SCRA 677 (1999)
Lopez v. Del Rosario and Quiogue, 44 Phil. 98 (1922)

2. Secs. 17 and 14(a), I.C.;

San Miguel Brewery v. Law Union and Rock Insurance Co., 40
Phil. 674 (1920);
Ong Ling Sing v. FEB Leasing & Finance Corporation, 425
SCRA 333 (2007);
3. Sec. 18, I.C.;
Sharuff & Co. v. Baloise Fire Insurance Co., 64 Phil. 258 (1937);
Garcia v. Hongkong Fire & Marine Insurance Co., 45 Phil. 122
(1923); Cha v. Court of Appeals, 277 SCRA 690 (1997)
4. Sec. 19, I.C.;
Tai Tong Chuache & Co. v. Insurance Commission, 158 SCRA
366 (1988)
5. Sec. 20, I.C.; Sec. 21-24, 57 IC
San Miguel Brewery v. Law Union and Rock Insurance Co., 40
Phil. 674 (1920);
Bachrach v. British American Assurance Co., 17 Phil. 555 (1910)
Sec. 58, I.C.;
San Miguel Brewery v. Law Union and Rock Insurance Co., 40
Phil. 674 (1920)

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IV. PREMIUM
1. Secs. 77 and 306, par. 2, I.C.;
South Sea Surety and Insurance Co., Inc. v. Court of Appeals,
244 SCRA 744 (1995);
Areola v. Court of Appeals, 236 SCRA 643 (1994)
2. Sec. 64(a), I.C.;
National Leather Co. Inc. v. U.S. Life Insurance Co., 87 Phil. 410
(1950);
3. Sec. 77, 227 (a), 228 (a) 230 (a), 78, 177, 52, 227 IC
American Home Assurance Company v. Chua, 309 SCRA 250 (1999)

Philippine Pryce Assurance Corp. v. Court of Appeals, 230

SCRA 164 (1994)
Pacific Timber v. Court of Appeals, 112 SCRA 199 (1982)
4. Jurisprudential Exceptions
Philippine Phoenix Surety & Insurance
Woodworks, Inc., 92 SCRA 419 (1979);

Company

v.

Capital Insurance & Surety Co., Inc. v. Plastic Era Co., Inc., 65
SCRA 134 (1975);
Arce v. Capital Insurance & Surety Co., Inc., 117 SCRA 63 (1982);
Malayan Insurance Co., Inc. v. Arnaldo, 154 SCRA 672 (1987);

UCPB General Insurance Co., Inc. v. Masagana Telemart, Inc.,

356 SCRA 307 (2001);
UCPB General Insurance Co., Inc. v. Masagana Telemart, Inc.,
356 SCRA 307 (2001)
Philippine Phoenix Surety & Insurance, Inc. v. Woodworks,
Inc., 20 SCRA 1270 (1967);
Tibay v. Court of Appeals, 257 SCRA 126 (1996);
Makati Tuscany v. Court of Appeals, 215 SCRA 462 (1992)
B. RETURN OF PREMIUM
1. Secs. 79(a) and 80, 79(b), 82, 361 I.C.;
Makati Tuscany v. Court of Appeals, 215 SCRA 462 (1992)
Great Pacific Life Insurance Corporation v. Court of Appeals, 184
SCRA 501 (1990)

22. THE POLICY

1. Sec. 49, 50, 226, 51, 227, 228, 230, 54-57, 50 I.C.; Art. 1377 Civil Code,
Sec. 47 IC.
Enriquez v. Sun Life Assurance Co. of Canada, 41 Phil. 269
(1920); Perez v. Court of Appeals, 323 SCRA 613 (2000);
Lucero Vda. de Singayen v. Insular Life Assurance Co., 62 Phil.
9 (1935); Tang v. Court of Appeals, 90 SCRA 236 (1979)
Commissioner of Internal Revenue v. Lincoln Philippine Life
Insurance Company, Inc., 379 SCRA 423 (2002)
2. Sec. 52, I.C.;
De Lim v. Sun Life Assurance Co. of Canada, 41 Phil. 263 (1920);
Great Pacific Life Assurance Company v. Court of Appeals, 89
SCRA 543 (1979)
Pacific Timber v. Court of Appeals, 112 SCRA 199 (1982)
1. KINDS OF PROPERTY INSURANCE POLICY
1. Sec. 59, 60, 161, 171; 156, 171; 62 I.C.
Development Insurance Corporation v. Intermediate Appellate
Court, 143 SCRA 62 (1986)
2. CANCELLATION, RENEWAL, REFORMATION
1. Sec. 64, I.C.; 79(b); 380-381; 65
Philamcare Health Systems, Inc. v. Court of Appeals, 379 SCRA
356 (2002) Paulino v. Capital Insurance, 105 Phil. 1315 (1959);
Saura Import & Export Co., Inc. v. Philippine International Surety
Co., Inc., 8 SCRA 143 (1963);
Malayan Insurance Co., Inc. v. Arnaldo, 154 SCRA 672 (1987)
2. Sec. 66, I.C.
3. San Miguel Brewery v. Law Union and Rock Insurance Co., 40 Phil. 674 (1920)

VI. ASCERTAINING AND CONTROLLING RISKS

A. CONCEALMENT

10

1. Sec. 26, I.C. Sec. 28 and 29 I.C.; Secs. 31 and 107, I.C.;
Saturnino v. Philippine American Life Ins. Co., 7 SCRA 316 (1963);
Sunlife Assurance Company of Canada v. Court of Appeals, 245
SCRA 268 (1995)
2. Sec. 30, 32-33, 34 & 51, 35 & 108 I.C.;
Insular Life Assurance v. Feliciano, 73 Phil. 201 (1941);
Insular Life Assurance Co. v. Feliciano, 74 Phil. 468 (1943);
Ng Gan Zee v. Asian Crusader Life Assurance Corp., 122 SCRA
461 (1983)
3. Secs. 27 and 29, I.C.;
Argente v. West Coast Life Insurance Co., 51 Phil. 725 (1928);
Yu Pang Cheng v. Court of Appeals, 105 Phil. 930 (1959);

Saturnino v. Philippine American Life Ins. Co., 7 SCRA 316 (1963);

Great Pacific Life Assurance Company v. Court of Appeals, 89
SCRA 543 (1979);
Gen. Insurance & Surety Corp. v. Ng Hua, 106 Phil. 1117 (1960);
Vda de Canilang v. Court of Appeals, 233 SCRA 443 (1993);

Sunlife Assurance Company of Canada v. Court of Appeals,

245 SCRA 268 (1995)
B. REPRESENTATION
1. Sec. 36, Sec. 37, Secs. 41 and 42, Sec. 38, Sec. 39, Sec. 40, I.C.
2. Secs. 43 and 44, I.C.;
Harding v. Commercial Union Assurance Company, 38 Phil. 464 (1918);

3. Sec. 46 in rel. to Sec. 31, I.C.

4. Sec. 45, I.C.;
Saturnino v. Philippine American Life Ins. Co., 7 SCRA 316 (1963);
Musgi v. West Coast Life Insurance Co., 61 Phil. 864 (1935);
Edillon v. Manila Bankers Life Insurance Corp., 117 SCRA 187 (1982);
Gonzalez LaO v. Yek Tong Lin Fire & Marine Insurance Co., Ltd., 55

Phil. 386 (1930);

Tan Chay Heng v. West Coast Life Insurance Co., 51 Phil. 80 (1927);
Qua Chee Gan v. Law Union and Rock Insurance Co., Ltd., 98
Phil. 85 (1955)
C. WARRANTIES
1. Sec. 67, Sec. 68, Sec. 69, 70, 71-76 I.C.;

11
Ang Giok Chip v. Springfield Fire & Marine Insurance Co., 56
Phil. 375 (1931)
Young v. Midland Textile Insurance Co., 30 Phil. 617 (1915);
Qua Chee Gan v. Law Union and Rock Insurance Co., Ltd., 98
Phil. 85 (1955)
Gen. Insurance & Surety Corp. v. Ng Hua, 106 Phil. 1117 (1960)
4. INCONTESTABLE CLAUSE
1. Sec. 48 (1), I.C.
Tan Chay Heng v. West Coast Life Insurance Co., 51 Phil. 80 (1927)
2. Sec. 48, par. 3, and Secs. 227(b), 228(b), and 230(b), I.C.
Tan v. Court of Appeals, 174 SCRA 403 (1989);
Philamcare Health Systems, Inc. v. Court of Appeals, 379 SCRA 356 (2002)

5. STIPULATIONS LIMITING COMMENCEMENT OF ACTION TO LESS THAN ONE YEAR

1. Sec. 63, I.C.;
Agric. Credit & Cooperative Financing Administration v. Alpha
Ins. & Surety Co., Inc., 24 SCRA 151 (1968);
Ang v. Fulton Fire Ins. Co., 2 SCRA 945 (1961);
Sun Insurance Office, Ltd. v. Court of Appeals, 195 SCRA 193 (1991);
New Life Enterprises v. Court of Appeals, 207 SCRA 669 (1992)

VII.

LOSS AND NOTICE OF LOSS

1. Sec. 83, 84, 85, 86, 87 and 180 A I.C.;
Paris-Manila Perfume Co. v. Phoenix Assurance Co., 49 Phil.
758 (1926)
FGU Insurance Corporation v. Court of Appeals, 454 SCRA 337 (2005)

East Furniture Inc. v. Globe & Rutgers Fire Ins. Co., 57 Phil. 576
(1932);
Prats & Co. v. Phoenix Insurance Co., 52 Phil. 807 (1929)
B. NOTICE AND PROOF
1. Requisites for Recovery After Loss
a. Give notice of loss without unnecessary delay

12
2. When required by policy, submit a preliminary proof of loss
2. Sec. 88, 89, 92, 90, 91 I.C.;
Bachrach v. British American Assurance Co., 17 Phil. 555 (1910)
Fernandez v. National Life Insurance Co., 105 Phil. 59 (1959);
Insular Life Assurance Co. Ltd. v. Fernandez, 109 Phil 530 (1960);
Malayan Insurance Co., Inc. v. Arnaldo, 154 SCRA 672 (1987);

Pacific Banking Corp. v. Court of Appeals, 168 SCRA 1 (1988)

Pacific Timber v. Court of Appeals, 112 SCRA 199 (1982);
Philippine Charter Insurance Corporation v. Chemoil
Lighterage Corporation, 462 SCRA 77 (2005)

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VIII. DOUBLE INSURANCE AND REINSURANCE
1. DOUBLE INSURANCE
1. Sec. 93 and 94 I.C.
Pacific Banking Corp. v. Court of Appeals, 168 SCRA 1 (1988);
Pioneer Insurance and Surety Corporation v. Yap, 61 SCRA 426 (1974);
New Life Enterprises v. Court of Appeals, 207 SCRA 669 (1992);

Geagonia v. Court of Appeals, 241 SCRA 152 (1995)

2. REINSURANCE
1. Sec. 95, 215-222, 275, 96, 87, 98I.C.;
Equitable Insurance and Casualty Co., Inc. v. Rural Insurance
and Surety Co., Inc., 4 SCRA 343 (1962);
Phil. American Life Ins. Co. v. Auditor General, 22 SCRA 135 (1968);

Fieldmens Insurance Co., Inc. v. Asian Surety & Insruance

Co., Inc., 34 SCRA 36 (1970)
Artex Development Co., Inc. v. Wellington Insurance Co., Inc.,
51 SCRA 352 (1973);
Coquia v. Fieldmens Insurance Co., Inc., 26 SCRA 178 (1968);
Guingon v. Del Monte, 20 SCRA 1043 (1967);
Gibson v. Revilla, 92 SCRA 219 (1979)

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IX. MARINE INSURANCE
1. DEFINITION AND COVERAGE
1. Sec. 99(1-2), I.C.;
Go Tiaoco y Hermanos v. Union Ins. Society of Canton, 40 Phil. 40 (1919);

Filipino Merchants Insurance Co., Inc. v. Court of Appeals, 179

SCRA 638 (1989)
White Gold Marine Services, Inc. v. Pioneer Insurance Surety
Corporation, 464 SCRA 448 (2005)
2. INSURABLE INTEREST
1. Secs. 100-105 I.C.;
C. ASCERTAINING AND CONTROLLING RISKS
1. Sec. 104, 105, 106, 110 I.C.
2. Sec. 111, 112, I.C.
3. Sec. 113 - 126 I.C.;
Madrigal, Tiangco & Co. v. Hanson, Orth & Stevenson, Inc., 103
Phil. 345 (1958)
Philippine American General Insurance Co., Inc. v. Court of
Appeals, 273 SCRA 262 (1997)
Roque v. Intermediate Appellate Court, 139 SCRA 596 (1985)
4. LOSS
1. Secs. 127 and 128; Secs. 129 and 137, I.C.
2. Sec. 130, 132, 135 I.C.;
Philippine Mfg. Co. v. Union Insurance Society of Canton, 42 Phil.
378 (1921);
Malayan Insurance Corporation v. Court of Appeals, 270 SCRA 242 (1997)
Pan Malayan Insurance Corp. v. Court of Appeals, 201 SCRA 382 (1991)

15
3. Secs. 131, 139, 140-145, IC. Secs. 150-151, 149, 154, 147, 146, 148,
152, 153, 155 IC
Oriental Assurance Corporation v. Court of Appeals, 200 SCRA 459 (1991);
Pan Malayan Insurance Corp. v. Court of Appeals, 201 SCRA 382 (1991)

4. Secs. 133 and 134, I.C.

5. Sec. 137, I.C.; Secs. 164 and 165, I.C.; Arts. 802-812, Code of Commerce;
Jarque v. Smith, Bell & Co., 56 Phil. 758 (1930)
5. MEASURE OF INDEMNITY Secs. 156 to 163, and 166, I.C.

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24.

FIRE INSURANCE

1. DEFINITION AND COVERAGE

1. Secs. 167, 173, 83 I.C.
2. MATTERS AFFECTING POLICY
1. Sec. 168-170 IC
2. Acts of Insured Sec. 170, I.C.;
Bachrach v. British American Assurance Co., 17 Phil. 555 (1910)
3. MEASURE OF INDEMNITY
1. Sec. 171, 172, I.C.;
Galian v. State Assurance Co., 29 Phil. 413 (1915)
Ong Guan Can and Bank of the P.I v. Century Ins. Co., 46 Phil. 592 (1924)

17
XI. LIFE INSURANCE
A. DEFINITION AND COVERAGE
1. Sec. 179, I.C.; Sec. 180, par. 1, I.C. ; Sec. 180, par. 2, and Sec. 2, par. 1,
I.C.; Secs. 2021-2027, Civil Code
Gallardo v. Morales, 107 Phil. 903 (1960)
2. Minor Beneficiaries Sec. 180, par. 3, I.C., as amended by Art. 225,
Family Code;
Nario v. Philippine American Life Ins. Co., 20 SCRA 434
(1967); Pineda v. Court of Appeals, 226 SCRA 754 (1993);
Bank of the Philippine Islands v. Posadas, 56 Phil. 215 (1931);
Del Val v. Del Val, 29 Phil. 534 (1915)
3. Suicide and Accidental Death Sec. 180-A, I.C.; See Sec. 87, I.C.;
Calanoc v. Court of Appeals, 98 Phil. 79 (1955);
Kanapi v. Insular Life Assurance Co., Ltd., 94 Phil. 397 (1954);
Biagtan v. The Insular Life Assurance Company, Ltd., 44 SCRA 58
(1972); De la Cruz v. Capital Ins. & Surety Co., Inc., 17 SCRA 559 (1966)

B. TRANSFER OF POLICY
1. Sec. 181-183, I.C.
Commissioner of Internal Revenue v. Lincoln Philippine Life
Insurance Company, Inc., 379 SCRA 423 (2002)

18
XII. CASUALTY AND COMPULSORY MOTOR
VEHICLE LIABILITY INSURANCE
1. CASUALTY INSURANCE
1. Sec. 174, I.C.
Tanco, Jr. v. Philippine Guaranty Co., 15 SCRA 313 (1965);
CCC Insurance Corporation v. Court of Appeals, 31 SCRA 264
(1970); Villacorta v. Insurance Commission, 100 SCRA 467 (1980);

Association of Baptists for World Evangelism, Inc. v. Fieldmens

insurance Co., Inc., 124 SCRA 618 (1983);
Stokes v. Malayan Insurance Co., Inc., 127 SCRA 766 (1984);
Gutierrez v. Captial Insurance & Surety Co., Inc., 130 SCRA 100
(1984); Malayan Insurance Co., Inc. v. Court of Appeals, 146 SCRA 45
(1986); Palermo v. Pyramid Insurance Co., Inc., 161 SCRA 677 (1988);
Perla Compania de Seguros, Inc. v. Court of Appeals, 208 SCRA 487 (1992)

Pan Malayan Insurance Corporation v. Court of Appeals, 184

SCRA 54 (1990);
Sun Insurance Office, Ltd. v. Court of Appeals, 211 SCRA 554 (1992);
Finman General Assurance Corp. v. Court of Appeals, 213 SCRA
493 (1992);
Vda. de Maglana v. Consolacion, 212 SCRA 268 (1992);
FGU insurance Corporation v. Court of Appeals, 287 SCRA 718 (1998)
2. COMPULSORY MOTOR VEHICLE LIABILITY INSURANCE (CMVLI)
1. Secs. 373, 374, 376-378, and 383 I.C.;
Shafer v. Judge, RTC of Olongapo City, Br. 75, 167 SCRA 386 (1988);
Government Service Insurance System v. Court of Appeals, 308
SCRA 559 (1999);
Tiu v. Arriesgado, 437 SCRA 426 (2004);
Perla Compania de Seguros, Inc. v. Ancheta, 164 SCRA 144 (1988)
2. Secs. 375 and 379, I.C.
3. Secs. 380 and 381, I.C.
4. Sec. 382, I.C.

19
5. Secs. 384 and 385, I.C.;
Shafer v. Judge, RTC of Olongapo City, Br. 75, 167 SCRA 386 (1988);
Government Service Insurance System v. Court of Appeals, 308
SCRA 559 (1999);
Summit Guaranty & Insurance Co., Inc. v. Arnaldo, 158 SCRA 331 (1988);

First Integrated Bonding & Insurance Co., Inc. v. Hernando, 199

SCRA 796 (1991);
Travellers Insurance & Surety Corp. v. Court of Appeals, 272
SCRA 536 (1997);
Vda. de Gabriel v. Court of Appeals, 264 SCRA 137 (1996)
6. Secs. 386 to 389, I.C.

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XIII. SURETYSHIP
1. DEFINITION AND COVERAGE
1. Sec. 175, I.C.; Sec. 2, pars. 1 and 2, I.C.;
Security Pacific Assurance Corporation v. Tria-Infante, 468 SCRA
526 (2005)
Nature of Liability Sec. 176, I.C.;
National Shipyards & Steel Corp. v. Torrento, 20 SCRA 427 (1967);
Leyson v. Rizal Surety and Insurance Co., 16 SCRA 551 (1966);

National Power Corporation v. Court of Appeals, 145 SCRA 533 (1986)

2. Suppletory Application of Civil Code Sec. 178, I.C.; Art. 2047 and Arts.
1207-1222, Civil Code
3. PREMIUM Sec. 177, I.C.;
Philippine Pryce Assurance Corp. v. Court of Appeals, 230 SCRA
164 (1994)