Perfection

A. An insurance contract is a consensual contract and is therefore perfected the moment there is a
meeting of the minds with the respect to the object and the cause or consideration. What is
being followed in the insurance contract is the cognition theory.
Cognition theory is the acceptance is considered to effectively bind the one making the offer
only from the time it came to his knowledge.
B. Generally, the insured is the one making the offer by submitting the application to the insurer
and the latter accepts the offer by approving the application. Without corresponding approval,
the policy is not perfected.
C. Delivery of the policy – Since the contract is consensual, the delivery of the policy is necessary
D. Delay in the approval - The mere delay in the acceptance of the insurance application will not
result in binding contract. Court cannot impose upon the parties if they did not consent.
However, in proper case the insurer may be liable of tort.
E. Cover notes - A concise and temporary written contract issued to the insurer through its duly authorized
agent embodying the principal terms of an expected policy of insurance. It is intended to give temporary
insurance protection coverage to the applicant pending the acceptance or rejection of his application. Its
duration should not exceed 60 days unless a longer period is approved by Insurance Commissioner
F. Policy – Written instruments where the terms and conditions of the contract are set forth. This
is not necessary for the perfection of the contract, yet the law provides that no policy shall be
issued unless it is previously approved by the Insurance commission.
Contents of policy:
1. Parties
2. Amount of insurance except in open running policy.
3. Rate of premium
4. Property or life insured.
5. Interest of the insured in the property if he is not the owner.
6. Risk insured against.
7. The period of the insurance.
G. Rider - Printed stipulations usually attached to the policy because they constitute additional stipulations
between the parties. In case of conflict between a rider and the printed stipulations in the policy, the rider
prevails, as being a more deliberate expression of the agreement of the contracting parties.

Tentative Case:

 GR 112329 – Perez vs. Court of Appeals

 G.R. No. L-15774 De Lim v. Sun Life Assurance Co.,
 Philmacare vs. CA – GR 125678
 GR 166245 – Eternal gardens memorial park vs. Phil am life insurance.
 GR 119655 - Tibay vs CA