Digested by: CANTILLAS, IRISH Subject: INSURANCE Title: ARCE vs. THE CAPITAL INSURANCE & SURETY CO.

, INC., Topic:

FACTS:

In Civil Case No. 66466 of !e Co"# of Fi#s Ins an$e of %anila, !e Ca&i al Ins"#an$e an' S"#e ( Co., In$., )CO%PANY* +as o#'e#e' o &a( Pe'#o A#$e )INSURE,* !e &#o$ee's of a fi#e ins"#an$e &oli$(. No sa isfie' +i ! !e 'e$ision, !e $o-&an( a&&eale' o !is Co"# on ."es ions of la+. T!e INSURE,)Pe'#o AR$e* +as !e o+ne# of a #esi'en ial !o"se in Ton'o, %anila, +!i$! !a' /een ins"#e' +i ! !e CO%PANY)Ca&i al ins"#an$e* sin$e 0160 "n'e# Fi#e Poli$( No. 24234. On Nove-/e# 24, 0165, !e CO%PANY sen o !e INSURE, Rene+al Ce# ifi$a e No. 44632 o $ove# !e &e#io' ,e$e-/e# 5, 0165 o ,e$e-/e# 5, 0166. T!e CO%PANY also #e."es e' &a(-en of !e $o##es&on'in7 &#e-i"- in !e a-o"n of P 68.03.

An i$i&a in7 !a !e &#e-i"- $o"l' no /e &ai' on i-e, !e INSURE,, !#" !is +ife, &#o-ise' o &a( i on 9an"a#( 4, 0166. T!e CO%PANY a$$e& e' !e &#o-ise /" !e &#e-i"- +as no &ai' on 9an"a#( 4, 0166. On 9an"a#( 8, 0166, !e !o"se of !e INSURE, +as o all( 'es #o(e' /( fi#e.

On 9an"a#( 03, 0166, INSURE,:s +ife &#esen e' a $lai- fo# in'e-ni ( o !e CO%PANY. S!e +as ol' !a no in'e-ni ( +as '"e /e$a"se !e &#e-i"- on !e &oli$( +as no &ai'. None !eless !e CO%PANY en'e#e' a $!e$; fo# P633.33 as finan$ial ai' +!i$! +as #e$eive' /( !e INSURE,:s 'a"7! e#, Evelina R. A#$e. T!e CO%PANY #ei e#a e' !a !e $!e$; +as 7iven <no as an o/li7a ion, /" as a $on$ession< /e$a"se !e #ene+al &#e-i"- !a' no /een &ai', T!e INSURE, $as!e' !e $!e$; /" !en s"e' !e CO%PANY on !e &oli$(. ISSUE: =!e !e# !e &e i ione#s a#e en i le' o $lai- f#o- !ei# &oli$( 'es&i e non>&a(-en of !ei# &#e-i"-. RULIN?: SEC. 42. An ins"#e# is en i le' o &a(-en of &#e-i"- as soon as !e !in7 ins"#e' is e@&ose' o !e &e#ils ins"#e' a7ains , "nless !e#e is $lea# a7#ee-en o 7#an $#e'i e@ ension fo# !e

&#e-i"- '"e. No &oli$( iss"e' /( an ins"#an$e $o-&an( is vali' an' /in'in7 "nless an' "n il !e &#e-i"- !e#eof !as /een &ai' < )I ali$s s"&&lie'.* )&. 00, A&&ellan :s A#ief.*

%o#eve#, !e &a# ies in !is $ase !a' s i&"la e':

IT IS HEREAY ,ECLARE, AN, A?REE, !a no . +i !s an'in7 an( !in7 o !e $on #a#( $on aine' in !e +i !in &oli$(, !is ins"#an$e +ill /e 'ee-e' vali' an' /in'in7 "&on !e Co-&an( onl( +!en !e &#e-i"- an' 'o$"-en a#( s a-&s !e#efo# !ave a$ "all( /een &ai' in f"ll an' '"l( a$;no+le'7e' in an offi$ial #e$ei& si7ne' /( an a" !o#iBe' offi$ialC#e&#esen a ive of !e Co-&an(, < )&&. 45>46, Re$o#' on A&&eal.*

I is o/vio"s f#o- /o ! !e Ins"#an$e A$ , as a-en'e', an' !e s i&"la ion of !e &a# ies !a i-e is of !e essen$e in #es&e$ of !e &a(-en of !e ins"#an$e &#e-i"- so !a if i is no &ai' !e $on #a$ 'oes no a;e effe$ "nless !e#e is s ill ano !e# s i&"la ion o !e $on #a#(. In !e ins an $ase, !e INSURE, +as 7iven a 7#a$e &e#io' o &a( !e &#e-i"- /" !e &e#io' !avin7 e@&i#e' +i ! no &a(-en -a'e, !e $anno insis !a !e CO%PANY is none !eless o/li7a e' o !i-.