I.

Course Code: LAW 139

II. Course Title: INSURANCE LAW
III. Credit Units: 2

IV. Course Description:

This course provides a study of the Insurance Code and related laws, including the concept and
function of insurance, the nature of the insurance contract, insurable interest, special forms of
insurance and government regulation of the insurance business.

V. Course Objectives:
The course aims at providing the student with a good overview and sense of orientation
regarding the implementation of insurance laws as well as the conduct of doing insurance business in
the Philippines.
Students successfully completing this course should be able to:
1. Understand and appreciate the nature and characteristic of an insurance contract
2. Demonstrate knowledge and understanding of the key concepts and principles of insurance
contracts such as insurable interests, policy and the different classes of insurance in the
Philippines.
3. Understand how courts interpret the insurance code of the Philippines.
4. Apply the knowledge gained from this cause to solve contemporary problems relating to
insurance.

VI. Grading System:

Midterm Grade = 40%(Quizzes) + 20%(OTR) + 40%(Midterm Exam)
Tentative Final Grade = 40%(Quizzes) + 20%(OTR) + 40%(Final Exam)

Final Grade = 40%(Midterm Grade) + 60%(Final Grade)

where: OTR(Other Requirements)= Recitation, Case Digests, Attendance, Other requirements.

VII. Course Content:

I. INTRODUCTION
A. Historical Background
B. Concept of Insurance
C. Characteristics/Nature of Insurance Contracts
D. Elements of an Insurance Contract
E. Parties to an Insurance Contract
F. Insurable Interest

II. THE CONTRACT OF INSURANCE

A. Offer and Acceptance/Consensual
B. Premium Payment
C. Refund of Premiums
D. The Insurance Policy
E. Double Insurance
F. Reinsurance

III. RESCISSION OF INSURANCE CONTRACTS

A. Concealment
B. Misrepresentation/Omissions
C. Breach of Warranties

IV. CLASSES OF INSURANCE

A. Marine
B. Fire
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 C. Casualty
D. Suretyship
E. Life
F. Compulsory Motor Vehicle Liability Insurance

V. CLAIMS SETTLEMENT AND SUBROGATION

A. Loss
B. Notice and Proof of Loss
C. Rules on Claims Settlement
D. Payment Proceeds in Life & Non-Life Insurance

VI. THE INSURANCE COMMISSIONER

A. Powers of the Insurance Commissioner

VIII. References:
1. Aquino, Timoteo B. Essentials of Insurance Law. Quezon City: Rex Printing Company.
2. Perez, Hernando. The Insurance Code and Financial Rehabilitation and Insolvency Act of 2010.
Quezon City: Rex Printing Company.
3. De Leon Jr., Hector M. The Insurance Code of the Philippines Annotated. Quezon City: Rex
Printing Company, 2010.
4. Rodriguez, Rufus B. The Insurance Code of the Philippines. Sixth Edition. Quezon City:
CentralBooks, 2003 .

Prepared by:

GILBERT R. HUFANA
Professor

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LAW 139 INSURANCE LAW
Cases for Digests

MIDTERMS
Construction of the Insurance Code
Insular Life v. Ebrado 80 SCRA 181
Qua Chee Gan v. Law Union Rock 98 PHIL 85
Ty v. Filipinas Compañia de Seguros 17 SCRA 64
Del Rosario v. Equitable Insurance 118 PHIL 349
Misamis Lumber v. Capital Insurance 123 Phil 1077
Verendia v. CA 217 SCRA 1993

The Contract of Insurance: Its Elements

Philamlife v. Ansaldo 234 SCRA 509
Filipinas Cia de Seguros v. Christern Huenfeld & Co. 80 PHIL 54
San Miguel Brewery v. Law Union Rock Insurance Company 40 PHIL 674
Saura Import Export Co. v. Philippine International Surety 118 PHIL 150
Palilieo v. Cosio 97 PHIL 919
Grepalife v. CA 316 SCRA 677

Parties to an Insurance Contract

Filipinas Cia de Seguros v. Christern, Huenfeld & Co. Inc. 89 PHIL 54
Nario v. Philamlife Insurance Company 20 SCRA 434
Villanueva v. Oro 81 PHIL 464
Philamlife v. Pineda 175 SCRA 416
Insular Life Assurance Co. v. Ebrado 80 SCRA 181
Southern Luzon Employee’s Association v. Golpeo 96 PHIL 83
SSS v. Davac 17 SCRA 863
Vda. De Consuegra v. GSIS 37 SCRA 315
In Re: Mario Chanliongco 79 SCRA 364

Insurable Interest
Col. C. Castro v. Insurance Commissioner GR. 55836, Feb. 16, 1981
Lincoln National Life v. San Juan CA GR 34588-88, Nov. 27, 1971
Gercio v. Sun Life 48 PHIL 53
El Oriente v. Posadas 56 PHIL 147 (1931)
Philamcare v. CA 379 SCRA 356

Insurable Interest in Property

Harvardian Colleges v. Country Bankers Insurance Corp. 1 SCRA 2
Traders Insurance and Surety Co. v. Golangco 95 PHIL 826
Filipino Merchants v. CA 179 SCRA 638
Cha v. Cha 277 SCRA 690 (1997)
Sharuff and Co. v. Baloise Fire Insurance Co. 64 SCRA 25
Garcia v. HongKong Fire and Marine Insurance Co. 45 PHIL 122
Tai Tong Chua Che & Co. v. Insurance Commission 158 SCRA 366

Concealment/Misrepresentation
Great Pacific Life Assurance Corp. V. CA 316 SCRA 677
Saturnino v. Philippine American Life Ins. Co. 7 SCRA 316
Great Pacific Life Ass. Co. v. CA 89 SCRA 543
Musngi v. West Coast Life Ins. Co. 61 Phil 864
Sunlife Assurance Company of Canada v. CA 245 SCRA 268
Ng Gan Zee v. Asian Crusader Life Assn. Corp. 122 SCRA 461
Eguaras v. Great Eastern Life Ass. Co. 33 Phil 263
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Argente v. Westcoast Life OIns. Co. 51 Phil 725
Insular Life Ass. Co. v. Feliciano 74 Phil 468

FINALS
Policy
De Lim v. Sun Life Assurance Co. 41 Phil 263
Pacific Timber Export Corp. v. CA 112 SCRA 199
Bonifacio Bros. Inc. v. Mora 20 SCRA 261
Development Insurance Corp. v. IAC 143SCRA 62
Finman General Assuarnce Corp. v. Inocencio 179 SCRA 480
Ang v. Fulton Fire Ins. Co. 2 SCRA 946
Paulino v. Capital Ins. & Surety Co. 105 Phil 1315
Malayan Ins. Co. v. Cruz Arnaldo 154 SCRA 672

Warranties
Edillon v. Manila Bankers Life Ins. Corp. 117 SCRA 187
Ang Giok Chip v. Springfield Fire & Marine Ins. Co. 56 Phil 375
Union Manufacturing Co. v. Phil Guaranty Co. 47 SCRA 271
Pacific Banking Corp. v. CA 168 SCRA 1

Premium
Philippine Phoenix Surety & Ins. Co. v. Woodworks, Inc. 92 SCRA 419
Servicewide Specialists Incoprorated v. CA 256 SCRA 649
Aleja v. GSIS 13 SCRA 212
Acme Shoe Rubber & Plastic Corp. v. CA 134 SCRA 155
Arce v. Capital Ins. & Surety Co., Inc. 117 SCRA 63
Velasco v. Apostol 173SCRA 228
Valenzuela v. CA 191 SCRA 1
UCPB General Insurance Co., Inc. v. Masagana Telemart, Inc. 308 SCRA 259 & GR No. 137172, April 2, 2001
American Home Assuarnce Co. v. Chua 309 SCRA 250
Makati Tuscany Condominium Corp. v. CA 215 SCRA 462

Loss
East Furniture Co. v. Globe & Rutgers Fire Ins. Co. 57 Phil 576
Sharruf & Co. v. Baloise Fire Ins. Co. 64 Phil 258
Yu Ban Chuan v. Fieldmen’s Ins. Co. 14 SCRA 491
Pacific Banking Corp. v. CA 168 SCRA 1

Double Insurance/Over-insurance/Re-insurance
Phil American Life Ins. v. Auditor General 22 SCRA 135
Fieldmen’s Ins. Co. v. Asian Surety & Ins. Co. 34 SCRA 36
Equitable Ins. & Casualty Co. v. Rural Ins. & Surety Co. 4 SCRA 343
Gibson v. Revilla 92 SCRA 219

Claims Settlement
Bay View Hotel Inc. v. Ker & Co., Ltd. 116 SCRA 327
Galutera v. MAersk Line 11 SCRA 251
Compania Maritima v. Insurance Co. of North America 12 SCRA 213
F.F. Cruz & Co. v. CA 164 SCRA 731
Manila Mahogany Manufacturing Co. v. CA 154 SCRA 650
St. Paul Fire & Marine Ins. Co. v. Macondray & Co. Inc. 70 SCRA 122
Coastwise Lighterage Corporation v. CA 245 SCRA 796
Cathay Insurance Co., Inc. v. CA 174 SCRA 11

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