Insurance Case Digest: Enriquez V.

Sun Life
Assurance Co. Of Canada (1920)
G.R. No. L-15895 November 29, 1920
Lessons Applicable: Perfection (Insurance)

FACTS:
 September 24, 1917: Joaquin Herrer made application to the Sun Life Assurance
Company of Canada through its office in Manila for a life annuity
 2 days later: he paid P6,000 to the manager of the company's Manila office and was
given a receipt
 according to the provisional receipt, 3 things had to be accomplished by the
insurance company before there was a contract:
 (1) There had to be a medical examination of the applicant; -check
 (2) there had to be approval of the application by the head office of the company;
and - check
 (3) this approval had in some way to be communicated by the company to the
applicant - ?
 November 26, 1917: The head office at Montreal, Canada gave notice of acceptance
by cable to Manila but this was not mailed
 December 4, 1917: policy was issued at Montreal
 December 18, 1917: attorney Aurelio A. Torres wrote to the Manila office of the
company stating that Herrer desired to withdraw his application
 December 19, 1917: local office replied to Mr. Torres, stating that the policy had
been issued, and called attention to the notification of November 26, 1917
 December 21, 1917 morning: received by Mr. Torres
 December 20, 1917: Mr. Herrer died
 Rafael Enriquez, as administrator of the estate of the late Joaquin Ma. Herrer filed to
recover from Sun Life Assurance Company of Canada through its office in Manila for
a life annuity
 RTC: favored Sun Life Insurance
ISSUE: W/N Mr. Herrera received notice of acceptance of his application thereby
perfecting his life annuity
HELD: NO. Judgment is reversed, and the Enriquez shall have and recover from the Sun
Life the sum of P6,000 with legal interest from November 20, 1918, until paid, without
special finding as to costs in either instance. So ordered.

Civil Code
Art. 1319 (formerly Art.1262)
Art. 1319. Consent is manifested by the meeting of the offer and the
acceptance upon the thing and the cause which are to constitute the
contract. The offer must be certain and the acceptance absolute. A
qualified acceptance constitutes a counter-offer.
Acceptance made by letter or telegram does not bind the offerer except
from the time it came to his knowledge. The contract, in such a case, is
presumed to have been entered into in the place where the offer was
made.
 not perfected because it has not been proved satisfactorily that the acceptance of
the application ever came to the knowledge of the applicant

Held:

NO.

The contract for life annuity was NOT perfected because it had NOT been proved
satisfactorily that the acceptance of the application ever came to the knowledge of the
applicant. An acceptance of an offer of insurance NOT actually or constructively
communicated to the proposer does NOT make a contract of insurane, as the locus
poenitentiae is ended when an acceptance has passed beyond the control of the party.

NOTE: Life annuity is the opposite of a life insurance. In life annuity, a big amount is
given to the insurance company, and if after a certain period of time the insured is stil
living, he is entitled to regular smaller amounts for the rest of his life. Examples of Life
annuity are pensions. Life Insurance on the other hand, the insured during the period of
the coverage makes small regular payments and upon his death, the insurer pays a big
amount to his beneficiaries.