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    Lalican Vs Insular Life Facts

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    Angela Marie Almalbis
    - Eulogio Lalican obtained a 1.5 million life insurance policy through Insular Life, with his wife Violeta named as primary beneficiary. He failed to pay the premium due in January 1998, causing the policy to lapse. - Eulogio submitted two applications to reinstate the policy, but Insular Life did not approve the first due to unpaid interest. He submitted the second application along with interest owed on the day he died of electrocution. - Violeta filed a claim for the policy proceeds, but Insular Life denied payment as the policy had lapsed and Eulogio's reinstatement application was not approved prior to his death. The court sided

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    Lalican Vs Insular Life Facts

    Uploaded by

    Angela Marie Almalbis
    111 views2 pages
    - Eulogio Lalican obtained a 1.5 million life insurance policy through Insular Life, with his wife Violeta named as primary beneficiary. He failed to pay the premium due in January 1998, causing the policy to lapse. - Eulogio submitted two applications to reinstate the policy, but Insular Life did not approve the first due to unpaid interest. He submitted the second application along with interest owed on the day he died of electrocution. - Violeta filed a claim for the policy proceeds, but Insular Life denied payment as the policy had lapsed and Eulogio's reinstatement application was not approved prior to his death. The court sided

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    - Eulogio Lalican obtained a 1.5 million life insurance policy through Insular Life, with his wife Violeta named as primary beneficiary. He failed to pay the premium due in January 1998, causing the policy to lapse. - Eulogio submitted two applications to reinstate the policy, but Insular Life did not approve the first due to unpaid interest. He submitted the second application along with interest owed on the day he died of electrocution. - Violeta filed a claim for the policy proceeds, but Insular Life denied payment as the policy had lapsed and Eulogio's reinstatement application was not approved prior to his death. The court sided

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    © All Rights Reserved
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    111 views2 pages

    Lalican Vs Insular Life Facts

    Uploaded by

    Angela Marie Almalbis
    - Eulogio Lalican obtained a 1.5 million life insurance policy through Insular Life, with his wife Violeta named as primary beneficiary. He failed to pay the premium due in January 1998, causing the policy to lapse. - Eulogio submitted two applications to reinstate the policy, but Insular Life did not approve the first due to unpaid interest. He submitted the second application along with interest owed on the day he died of electrocution. - Violeta filed a claim for the policy proceeds, but Insular Life denied payment as the policy had lapsed and Eulogio's reinstatement application was not approved prior to his death. The court sided

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    of 2

    LALICAN vs INSULAR LIFE

    FACTS:
     During his lifetime, Eulogio Lalican applied for an insurance policy with Insular Life,
    throught its agent Josephine Malaluan, valued at 1.5 million. Violeta Lalican was named
    as primary beneficiary.
     Under the terms of the policy, Eulogio was to pay the premiums on a quarterly basis until
    the end of the 20-yr period of the policy. According to the Policy Contract, there was a
    grace period of 31 days for the payment of each premium subsequent to the first. If any
    premium was not paid on or before the due date, the policy would be in default, and if
    the premium remained unpaid until the end of the grace period, the policy would
    automatically lapse and become void.
     Eulogio paid the premiums due on July and October 1997 but failed to pay the premium
    due on January 1998, even after the lapse of the grace period of 31 days. Therefore, his
    policy lapsed and became void.
     Eulogio submitted to Insular Life through Malaluan an Application for Reinstatement of
    his policy. Insular life did not process his application for reinstatement because he left
    unpaid the overdue interest, he was instructed to pay the amount of interest and file
    another application for reinstatement.
     4 months after, Eulogio went to Malaluan's house and submitted a second application for
    reinstatement including the interest on the premium.
     On that same day, Eulogio died of cardio-respiratory arrest secondary to electrocution.
     Without knowing of Eulogio's death, Malaluan forwarded the application and deposit to
    Insular Life the next day. However, Insular Life no longer acted upon Eulogio's
    application as it was informed that Eulogio passed away.
     Violeta filed with Insular Life a claim for payment of the full proceeds of Eulogio's policy.
     Insular informed Violeta that her claim could not be granted since at the time of Eulogio's
    death, his policy already lapsed and he failed to reinstate the same.
     According to the Application for Reinstatement, the policy would only be reinstated upon
    approval of the application by Insular Life during the applicant's lifetime and good health
    and whatever amount paid was considered deposit only until approval of said
    application.
     Insular gave Violeta a check representing the full refund of the payments made by
    Eulogio on his policy.
     Violeta asked for a reconsideration of her claim but Insular rejected it.
     Violeta demanded payment of the full proceeds of the policy through a letter. Insular life
    agreed to conduct a re-evaluation of her claim.
     Without waiting for the result of the re-evaluation, Violeta filed with RTC a complaint for
    death claim benefit. Violeta alleged that Insular engaged in unfair claim settlement
    practice and deliberately failed to act with reasonable promptness on her insurance
    claim.
     Insular asserts that Violeta's complaint has no legal basis. That the policy was rendered
    void by non-payment of the premiums and non-compliance with the requirements for the
    reinstatement.
     RTC decided in favor of Insular Life and found that the policy indeed lapsed and failed to
    reinstate the same.
     Violeta filed a MR but was denied, she failed to file a notice of appeal within the
    reglementary period.

    ISSUE:
    WON the issue on Insurable Interest is relevant in this case

    HELD:
    NO.
    An insurable interest is one of the most basic and essential requirements in an insurance
    contract. In general, an insurable interest is that interest which a person is deemed to
    have in the subject matter insured, where he has a relation or connection with or concern
    in it, such that the person will derive pecuniary bene�t or advantage from the
    preservation of the subject matter insured and will suffer pecuniary loss or damage from
    its destruction, termination, or injury by the happening of the event insured against. The
    existence of an insurable interest gives a person the legal right to insure the subject matter of
    the policy of insurance. Section 10 of the Insurance Code indeed provides that every person
    has an insurable interest in his own life. Section 19 of the same code also states that an interest
    in the life or health of a person insured must exist when the insurance takes effect, but need not
    exist thereafter or
    when the loss occurs.
    Upon more extensive study of the Petition, it becomes evident that the matter of insurable
    interest is entirely irrelevant in the case at bar. It is actually beyond question that while Eulogio
    was still alive, he had an insurable interest in his own life, which he did insure under Policy No.
    9011992.
    ISSUE #2: The real point of contention herein is whether Eulogio was able to reinstate the
    lapsed insurance policy on his life before his death.
    HELD #2: NO.
    Eulogio's filing of the application for reinstatement process that his policy indeed lapsed. Insular
    Life did not act on his first application since the amount deposited was only the overdue
    premium without the overdue interest. Eulogio then submitted a second application with deposit
    of the overdue interest but on that same day he passed away.

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