Case Digest (G.R. No. L-1669)
Facts:
In two consolidated appeals, Paz Lopez de Constantino, beneficiary, sued Asia Life Insurance Company, defendant, seeking payment under two life policies after the insureds died following non-payment of premiums during the Japanese occupation. In the first, Policy No. 93912 for P3,000 issued September 27, 1941, had one annual premium paid to September 26, 1942; no further premiums were paid and the insured died September 22, 1944, while the insurer had closed its Manila office from January 2, 1942, until 1945.In the second, Policy No. 78145 (P3,000) issued August 1, 1938, had premiums paid up to January 31, 1942; a loan had reduced its cash value and the insured died February 16, 1945; the court below absolved the defendant and the beneficiaries appealed.
Issues:
- May the beneficiaries recover policy proceeds despite non-payment of premiums caused by the Japanese occupation?
- Should the Court apply the New York Rule (suspension and revival upon tender of arrears) or the Unit
Case Digest (G.R. No. L-1669)
Facts:
- First case — Policy No. 93912 and nonpayment
- PAZ LOPEZ DE CONSTANTINO, Plaintiff and Appellant was the named beneficiary in Policy No. 93912 issued by ASIA LIFE INSURANCE COMPANY, Defendant and Appellee on September 27, 1941, for P3,000 insuring the life of Arcadio Constantino for twenty years.
- The insured paid an initial premium of P176.04 covering the period to September 26, 1942, and the policy stipulated an annual premium of One Hundred fifty-eight and 4/100 pesos Philippine currency plus P18 for accident benefits, with premiums due in advance and a grace period of 31 days; the policy further provided that any unpunctuality in premium payment would cause the policy to lapse.
- After the first payment, no further premiums were paid.
- The insured died on September 22, 1944.
- It was admitted that ASIA LIFE INSURANCE COMPANY, being an American corporation, closed its branch office in Manila by reason of the Japanese occupation from January 2, 1942, until 1945.
- Second case — Policy No. 78145, loan, and nonpayment
- On August 1, 1938, ASIA LIFE INSURANCE COMPANY issued Policy No. 78145 (Joint Life 20-Year Endowment Participating with Accident Indemnity) covering the lives of Tomas Ruiz and Agustina Peralta for P3,000.
- The annual premium was paid regularly through September 30, 1941; effective August 1, 1941, payment mode changed to quarterly and the last quarterly premium was delivered on November 18, 1941, covering up to January 31, 1942.
- No further premiums were paid after January 31, 1942.
- The insured Tomas Ruiz had borrowed P234.00 on the policy in January, 1941, and the cash surrender value of the policy was sufficient to maintain the policy only up to September 7, 1942.
- Tomas Ruiz died on February 16, 1945.
- The plaintiff Agustina Peralta, as beneficiary, demanded payment which ASIA LIFE INSURANCE COMPANY refused on the ground of non-payment of premiums.
- Plaintiffs alleged that non-payment was caused by the...(Subscriber-Only)
Issues:
- Primary legal question
- Whether a beneficiary under a life insurance policy may recover policy proceeds where the insured repeatedly failed to pay premiums and died during the period of nonpayment when the failure was caused by war-related circumstances, specifically the Japanese occupation.
- Related subsidiary questions
- Whether nonpayment of premiums occasioned by war constitutes excused impossibility that prevents forfeiture of the policy.
- Which doctrinal rule governing nonpayment during war applies: the Connecticut Rule, the New York Rule, or the Unite...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)