Case Digest (G.R. No. 41702)
Facts:
Fortunata Lucero Viuda de Sindayen v. The Insular Life Assurance Co., Ltd., G.R. No. 41702. September 04, 1935, the Supreme Court En Banc, Butte, J., writing for the Court.
The plaintiff-appellant, Fortunata Lucero Viuda de Sindayen (widow and beneficiary), sued the defendant-appellee, The Insular Life Assurance Co., Ltd., to recover P1,000 under policy No. 47710 issued on the life of her husband, Arturo Sindayen, who died January 19, 1933. Sindayen applied for the policy on December 26, 1932, paid P15 to the company’s local agent, Cristobal Mendoza, and agreed that the balance of the first annual premium (P25.06 of a total P40.06) would be paid in Camiling, Tarlac, and that the policy when issued be delivered to his aunt, Felicidad Estrada.
The company’s medical examiner examined Sindayen on January 1, 1933, and made a favorable report; the company accepted the risk and issued the policy dated back to December 1, 1932, but the policy was mailed to the agent in Camiling on January 11, 1933. Mendoza received the mailed policy in Camiling on January 16 and on January 18 delivered it to Estrada after she paid the balance of the premium. The insured, however, had complained of a headache on January 12, been examined and treated for acute nephritis and uremia on January 15, and died on January 19, 1933.
After learning of the death, Mendoza retrieved the policy from Estrada on January 20 and notified the company. On February 4 the company tendered a check for P40.06 to the widow and obtained from her a signed document titled “Accord, Satisfaction and Release” (Exhibit A) by which she purportedly released all claims under the policy; the check was later returned uncashed. The trial court (Court of First Instance of Manila) dismissed the complaint; the widow appealed. The company’s pleaded defenses were (1) the policy never took effect because the application provided that the policy “shall not take effect … until the first premium has been paid and the policy has been delivered to and accepted by me, while I am in good health,” and the insured was not in good health at delivery; and (2) the widow had executed a valid accord and release.
The Court of First Instance dismissed; the case was brought to the Supreme Court by appeal. The Supre...(Subscriber-Only)
Issues:
- Did delivery of the policy by the company’s local agent bind the company so that the insurance became effective despite the insured not being in good health at the time of delivery?
- Was the defendant estopped or deemed to have waived its defense that the insured was not in good health at delivery by accepting the premium and delivering the policy through its agent?
- Did the “Accord, Satisfaction and Release” (Exhibit...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)