Enriquez v. SunLife- Insurance Policy

41 PHIL 269

Facts:

>  On Sept. 24 1917, Herrer made an application to SunLife through its office in Manila for life annuity.

>  2 days later, he paid the sum of 6T to the company’s anager in its Manila office and was given a receipt.

>  On Nov. 26, 1917, the head office gave notice of acceptance by cable to Manila.  On the same date, the Manila office prepared a letter notifying Herrer that his application has been accepted and this was placed in the ordinary channels of transmission, but as far as known was never actually mailed and never received by Herrer.

>  Herrer died on Dec. 20, 1917.  The plaintiff as administrator of Herrer’s estate brought this action to recover the 6T paid by the deceased.

Issue:

Whether or not the insurance contract was perfected.

Held:

NO.

The contract for life annuity was NOT perfected because it had NOT been proved satisfactorily that the acceptance of the application ever came to the knowledge of the applicant.  An acceptance of an offer of insurance NOT actually or constructively communicated to the proposer does NOT make a contract of insurane, as the locus poenitentiae is ended when an acceptance has passed beyond the control of the party.

NOTE: Life annuity is the opposite of a life insurance.  In life annuity, a big amount is given to the insurance company, and if after a certain period of time the insured is stil living, he is entitled to regular smaller amounts for the rest of his life. Examples of Life annuity are pensions.  Life Insurance on the other hand, the insured during the period of the coverage makes small regular payments and upon his death, the insurer pays a big amount to his beneficiaries.