Gercio v. Sun Life - Insurance Beneficiary

48 PHIL 53

Facts:

>  Sunlife issued a life insurance policy to Gercio, the former agreeing to insure the life of Gercio for 2T to be paid to him on Feb. 1, 1930 or if he should die before said date, then to his wife Andrea, should she survive him; otherwise to the executor, administrator of Gercio.

>  The policy did not include any provision reserving to Gercio the right to change the beneficiary.

>  The wife was convicted of adultery and a decree of divorce was issued.

>  Gercio notified Sunlife that he had revoked his donation in favor of Andrea and that he had designated his present wife Adela as his beneficiary.

>  Sunlife refused to change the beneficiary.

Issue:

Whether or not Gercio may change the beneficiary in the policy.

Held:

NO.

If the policy contains no provision authorizing a change of beneficiary without the beneficiary’s consent, the insured cannot make such change.  It is held that a life insurance policy of a husband made payable to his wife as a beneficiary is the separate property of the beneficiary and beyond the control of the husband. (NOTE: this case is based on the old rule under the Insurance Act)

Court also held that the designation of a beneficiary that is originally valid does NOT render it invalid dut to a subsequent cessation of the interests between the beneficiary and insured.