Insurance Law

Sec. 51-72
Melanie P. Mejia

Finman General Assurance v. CA

(1992)
FACTS: Carlie Surposa was insured with Finman under a personal
accident insurance. His parents and siblings were designated as
beneficiaries
During the effectivity of the policy, the insured was stabbed to
death by an unidentified man while the insured was on his way
home
The claim was denied by Finman on the ground that murder and
assault were not covered by the insurance policy
ISSUE: Whether the insurer is liable on the proceeds of the claim

HELD: No.
RATIO: Accident is defined as an event that takes place
without one's foresight or expectation (no technical
meaning)
Rule: where the death or injury is not the natural or
probable result of the insured's voluntary act, or if
something unforeseen occurs in the doing of the act
which produces the injury, the resulting death is within
the protection of the policies insuring against death or
injury from accident.

CAB: The insured died from an event that took place without his
foresight or expectation
The principle of "expresso unius exclusio alterius" (the
mention of one thing implies the exclusion of another thing) is
applicable
Since the insurer enumerated 10 circumstances not covered
by the policy and murder or assault is not one of them, it
follows that death arising from murder or assault is covered
under the policy
Reason: Contracts of insurance are to be construed liberally in
favor of the insured and strictly against the insurer

Section 51. A policy of insurance must specify:

a)
b)
c)

d)
e)
f)
g)

The parties between whom the contract is made;

The amount to be insured except in the cases of open or running
policies;
The premium, or if the insurance is of a character where the exact
premium is only determinable upon the termination of the
contract, a statement of the basis and rates upon which the final
premium is to be determined;
The property or life insured;
The interest of the insured in property insured, if he is not the
absolute owner thereof;
The risks insured against; and
The period during which the insurance is to continue.

Delfin Nario v. Court of Appeals

FACTS: Alejandra Nario obtained a life insurance policy from
Philamlife for P5,000. She designated her husband and son
as irrevocable beneficiaries
Mrs. Nario applied for a loan on the policy for the
educational expenses of her son
Philamlife denied the loan because the legal guardian must
be authorized by the court in a guardianship proceeding
Mrs. Nario opted to surrender her policy in exchange for
P520 (amount of premiums paid) but was denied

ISSUE: Whether Philamlife is correct in denying the loan application

and the surrender of the policy
HELD: Yes.
RATIO: The vested interest or right of the beneficiaries in the policy
should be measured on its full face value and not on its cash
surrender value, for in case of death of the insured, said beneficiaries
are paid on the basis of its face value and in case the insured should
discontinue paying premiums, the beneficiaries may continue paying
it and are entitled to automatic extended term or paid-up insurance
options, etc., and that said vested right under the policy cannot be
divisible at any given time.

Section 61. A valued policy is one which expresses

on its face an agreement that the thing insured
shall be valued at a specific sum.