Case Digest (G.R. No. L-10874)
Facts:
Rufino D. Andres v. The Crown Life Insurance Company, G.R. No. L-10874, January 28, 1958, the Supreme Court En Banc, Reyes, J.B.L., J., writing for the Court.
Plaintiff-appellant Rufino D. Andres sued defendant-appellee The Crown Life Insurance Company in the Court of First Instance of Ilocos Norte for P5,000, the face amount of a joint 20-year endowment policy (Policy No. 536,423) issued February 13, 1950 in favor of Rufino and his wife Severa G. Andres; the complaint was filed April 20, 1952 after the insurer denied payment of a survivor's claim.
The stipulation of facts (filed March 25, 1954) established the payment history and correspondence: the first semiannual premium (Nov. 25, 1949–May 25, 1950) was paid Nov. 25, 1949; the second (May 25–Nov. 25, 1950) was paid June 24, 1950; the third (Nov. 25, 1950–May 25, 1951) was not paid and the policy lapsed on December 25, 1950 after the 31‑day grace period. The insurer sent letters in January and February 1951 advising of the lapse and allowing application for reinstatement. In February 1951 both Rufino and Severa executed applications/statements of health for reinstatement, and Rufino sent a money order for P100 (received February 26, 1951). On April 14 and April 27, 1951 the insurer informed Rufino that reinstatement was approved by the Home Office but conditioned upon payment of the balance of P65.15, and that the Certificate of Reinstatement would be sent upon receipt of that balance. Rufino remitted P65.00 by money order on May 5, 1951, which was received by the insurer’s agency on May 11, 1951. Mrs. Severa Andres died May 3, 1951; Rufino presented his death claim June 7, 1951; the insurer refused payment and later tendered a bank check and a proposed release which Rufino did not sign.
Judge Julio Villamor of the Court of First Instance, on August 5, 1954, absolved the insurer, holding that the policy had lapsed and was not reinstated at the time of Severa’s death. Plaintiff appealed to the Court of Appeals; the appeal was certified to th...(Pro-only)
Issues:
- Was policy No. 536,423 validly and completely reinstated before the death of Severa G. Andres?
- Did The Crown Life Insurance Company waive the condition requiring full payment of overdue premiums as a prerequisite to reinstatement by its communication...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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