Title
Tan vs. Court of Appeals
Case
G.R. No. L-48049
Decision Date
Jun 29, 1989
Insured's death within two-year incontestability period allowed insurer to rescind policy due to material concealment of medical history.

Case Digest (G.R. No. L-48049)
Expanded Legal Reasoning Model

Facts:

  • Parties and Subject Matter
    • Petitioners: Emilio Tan, Juanito Tan, Alberto Tan, Arturo Tan, beneficiaries under Policy No. 1082467.
    • Respondents: Court of Appeals and Philippine American Life Insurance Company (PhilAmLife); dispute over recovery of P80,000 life‐insurance proceeds.
  • Insurance Application, Issuance, and Claim
    • September 23, 1973: Tan Lee Siong applied for P80,000 life policy with PhilAmLife.
    • November 6, 1973: Policy No. 1082467 issued, naming petitioners as beneficiaries.
    • April 26, 1975: Insured died of hepatoma; petitioners filed claim for proceeds.
    • September 11, 1975: PhilAmLife denied claim, rescinded policy for alleged misrepresentation and concealment; refunded premiums.
  • Administrative and Judicial Proceedings
    • November 27, 1975: Petitioners filed complaint before the Insurance Commissioner (I.C. Case No. 218).
    • August 9, 1977: Insurance Commissioner dismissed complaint.
    • Petitioners appealed to Court of Appeals; it affirmed the dismissal for lack of merit.
    • Petitioners filed this petition for review on certiorari to the Supreme Court.

Issues:

  • Rescission Post‐Death
    • Can an insurer rescind a life policy after the insured’s death?
    • Does Section 48, Insurance Code, limit rescission to the insured’s lifetime and within two years?
  • Grounds for Avoidance
    • May the insurer avoid the policy on grounds of concealment or misrepresentation by the deceased?
    • Is such avoidance contrary to the policy contract or applicable law and jurisprudence?
  • Sufficiency of Evidence
    • Did the Court of Appeals err in concluding that PhilAmLife was misled by the insured’s concealment?
    • Were petitioners prejudiced by alleged non‐presentation of medical examiners or agent witnesses?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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