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    Insular Life v. Feliciano

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    nelly casabuena
    This case involves an insurance policy taken out by Evaristo Feliciano with Insular Life. When Feliciano died, Insular Life denied the insurance claim, alleging fraud in the application. The court found that Insular Life's agent and medical examiner knew Feliciano had tuberculosis but falsely stated he was healthy. The court ruled that Insular Life must pay out the policy, as the agent acted against the company's interests by providing false information, without Feliciano's knowledge. As the agent represented Insular Life, the company must bear responsibility for its agent's actions. The petition by Insular Life to avoid the policy was dismissed.

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    © All Rights Reserved
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    Insular Life v. Feliciano

    Uploaded by

    nelly casabuena
    36 views2 pages
    This case involves an insurance policy taken out by Evaristo Feliciano with Insular Life. When Feliciano died, Insular Life denied the insurance claim, alleging fraud in the application. The court found that Insular Life's agent and medical examiner knew Feliciano had tuberculosis but falsely stated he was healthy. The court ruled that Insular Life must pay out the policy, as the agent acted against the company's interests by providing false information, without Feliciano's knowledge. As the agent represented Insular Life, the company must bear responsibility for its agent's actions. The petition by Insular Life to avoid the policy was dismissed.

    Original Title

    113. Insular Life v. Feliciano

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    This case involves an insurance policy taken out by Evaristo Feliciano with Insular Life. When Feliciano died, Insular Life denied the insurance claim, alleging fraud in the application. The court found that Insular Life's agent and medical examiner knew Feliciano had tuberculosis but falsely stated he was healthy. The court ruled that Insular Life must pay out the policy, as the agent acted against the company's interests by providing false information, without Feliciano's knowledge. As the agent represented Insular Life, the company must bear responsibility for its agent's actions. The petition by Insular Life to avoid the policy was dismissed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    36 views2 pages

    Insular Life v. Feliciano

    Uploaded by

    nelly casabuena
    This case involves an insurance policy taken out by Evaristo Feliciano with Insular Life. When Feliciano died, Insular Life denied the insurance claim, alleging fraud in the application. The court found that Insular Life's agent and medical examiner knew Feliciano had tuberculosis but falsely stated he was healthy. The court ruled that Insular Life must pay out the policy, as the agent acted against the company's interests by providing false information, without Feliciano's knowledge. As the agent represented Insular Life, the company must bear responsibility for its agent's actions. The petition by Insular Life to avoid the policy was dismissed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    113. Insular Life v.

    Feliciano 73 Phil 201 (1941) (Casabuena)

    Petitioner:  THE INSULAR LIFE ASSURANCE CO., LTD. Date:


    Respondent:  SERAFIN D. FELICIANO and ANGEL, FLORENDA, EUGENIO, Topic: Section 45
    HERMINIO and LETICIA, all surnamed FELICIANO, represented by their guardian
    ad litem SERAFIN D. FELICIANO
    FULL TEXT
    Facts: 

    1. Evaristo Feliciano was issued an insurance policy by Insular Life.

    2. In September 1935, he died. His heirs (Serafin Feliciano et al) filed an insurance claim but Insular
    Life denied the application as it averred that Feliciano’s application was attended by fraud.

    3. It was later found in court that the insurance agent and the medical examiner of Insular Life who
    assisted Feliciano in signing the application knew that Feliciano was already suffering from
    tuberculosis; that they were aware of the true medical condition of Feliciano yet they still made it
    appear that he was healthy in the insurance application form; that Feliciano signed the application in
    blank and the agent filled the information for him.

    ISSUE:
    Whether or not Insular Life can avoid the insurance policy by reason of the fact that its agent
    knowingly and intentionally wrote down the answers in the application differing from those made by
    Feliciano hence instead of serving the interests of his principal, acts in his own or another’s interest
    and adversely to that of his principal [NO]

    RATIONALE: 

    No. Insular Life must pay the insurance policy. The weight of authority is that if an agent of the
    insurer, after obtaining from an applicant for insurance a correct and truthful answer to
    interrogatories contained in the application for insurance, without knowledge of the applicant fills in
    false answers, either fraudulently or otherwise, the insurer cannot assert the falsity of such answers
    as a defense to liability on the policy, and this is true generally without regard to the subject matter
    of the answers or the nature of the agent’s duties or limitations on his authority, at least if not
    brought to the attention of the applicant.

    The fact that the insured did not read the application which he signed, is not indicative of bad faith. It
    has been held that it is not negligence for the insured to sign an application without first reading it if
    the insurer by its conduct in appointing the agent influenced the insured to place trust and
    confidence in the agent.

    The insurance business has grown so vast and lucrative within the past century. Nowadays, even
    people of modest means enter into insurance contracts. Agents who solicit contracts are paid large
    commissions on the policies secured by them. They act as general representatives of insurance
    companies.

    In the case at bar, the true state of health of the insured was concealed by the agents of the insurer.
    The insurer’s medical examiner approved the application knowing fully well that the applicant was
    sick. The situation is one in which of two innocent parties must bear a loss for his reliance upon a
    third person. In this case, it is the one who drafted and accepted the policy and consummated the
    contract. It seems reasonable that as between the two of them, the one who employed and gave
    character to the third person as its agent should be the one to bear the loss. Hence, Insular is liable
    to the beneficiaries.
    DISPOSITIVE PORTION: 
    The petition is hereby dismissed and the judgment sought to be reviewed is affirmed with costs
    against the petitioner. So ordered.

    Additional Notes:

    "Section 45. If a representation is false in a material point, whether affirmative or promissory, the
    injured party is entitled to rescind the contract from the time when the representation becomes false.

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