Title
Great Pacific Life Assurance Corp. vs. Court of Appeals
Case
G.R. No. 113899
Decision Date
Oct 13, 1999
A group life insurance dispute arose after Grepalife denied a claim due to alleged concealment of hypertension by the insured, Dr. Leuterio. Courts ruled in favor of his widow, affirming her right to sue and ordering Grepalife to pay P86,200 to heirs upon proof of mortgage settlement.

Case Digest (G.R. No. 113899)
Expanded Legal Reasoning Model

Facts:

  • Contract and Application
  • Great Pacific Life Assurance Corp. (Grepalife) entered into Group Policy No. G-1907 with Development Bank of the Philippines (DBP) to insure housing-loan mortgagors.
  • On November 11, 1983, Dr. Wilfredo Leuterio applied, answering “No” to prior heart, hypertension or other conditions and “Yes” to being in good health.
  • Certificate, Death and Claim
  • On November 15, 1983, Grepalife issued Certificate No. B-18558 covering Dr. Leuterio’s mortgage indebtedness of ₱86,200.
  • Dr. Leuterio died on August 6, 1984 of a cerebral hemorrhage; DBP filed a death claim, which Grepalife denied, alleging concealment of hypertension.
  • Proceedings Below
  • On October 20, 1986, Medarda V. Leuterio (widow) sued Grepalife for specific performance with damages in RTC Misamis Oriental, Branch 18.
  • The RTC ruled in favor of the widow; the Court of Appeals affirmed on May 17, 1993. Grepalife then filed this Rule 45 petition.

Issues:

  • Real Party in Interest
  • Can the widow maintain the suit when DBP, as loss payee, was not joined?
  • Concealment Defense
  • Did Dr. Leuterio willfully conceal a hypertension condition material to risk?
  • Quantum of Recovery
  • Is the award of ₱86,200 proper absent proof of actual outstanding mortgage at the time of death?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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