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    Grepalife Vs CA

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    Annabelle Bustamante
    Leuterio took out a housing loan from DBP and was enrolled in a group life insurance plan with Grepalife to insure his life for the amount of his mortgage. When Leuterio passed away, Grepalife refused to pay the claim, citing concealment. DBP foreclosed on the mortgage to collect the debt. Leuterio's widow then filed a claim against Grepalife directly to collect the insurance proceeds. The court ruled that because DBP had already foreclosed on the mortgage, any insurance proceeds would go to Leuterio's heirs, not DBP. As the mortgagor who paid the premiums, Leuterio remained party to the insurance contract, and such

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    Grepalife Vs CA

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    Annabelle Bustamante
    22 views1 page
    Leuterio took out a housing loan from DBP and was enrolled in a group life insurance plan with Grepalife to insure his life for the amount of his mortgage. When Leuterio passed away, Grepalife refused to pay the claim, citing concealment. DBP foreclosed on the mortgage to collect the debt. Leuterio's widow then filed a claim against Grepalife directly to collect the insurance proceeds. The court ruled that because DBP had already foreclosed on the mortgage, any insurance proceeds would go to Leuterio's heirs, not DBP. As the mortgagor who paid the premiums, Leuterio remained party to the insurance contract, and such

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    Grepalife vs CA

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    Leuterio took out a housing loan from DBP and was enrolled in a group life insurance plan with Grepalife to insure his life for the amount of his mortgage. When Leuterio passed away, Grepalife refused to pay the claim, citing concealment. DBP foreclosed on the mortgage to collect the debt. Leuterio's widow then filed a claim against Grepalife directly to collect the insurance proceeds. The court ruled that because DBP had already foreclosed on the mortgage, any insurance proceeds would go to Leuterio's heirs, not DBP. As the mortgagor who paid the premiums, Leuterio remained party to the insurance contract, and such

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    22 views1 page

    Grepalife Vs CA

    Uploaded by

    Annabelle Bustamante
    Leuterio took out a housing loan from DBP and was enrolled in a group life insurance plan with Grepalife to insure his life for the amount of his mortgage. When Leuterio passed away, Grepalife refused to pay the claim, citing concealment. DBP foreclosed on the mortgage to collect the debt. Leuterio's widow then filed a claim against Grepalife directly to collect the insurance proceeds. The court ruled that because DBP had already foreclosed on the mortgage, any insurance proceeds would go to Leuterio's heirs, not DBP. As the mortgagor who paid the premiums, Leuterio remained party to the insurance contract, and such

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    Great Pacific Life Assurance Corp. (GREPA) vs.

    CA
    GR. No. 113899

    October 13, 1999

    FACTS: Leuterio, a housing debtor of DBP, applied for membership in the group life
    insurance plan executed between Grepalife and DBP under which Grepalife agreed
    to insure the lives of eligible housing loan mortgagors of DBP. He was issued an
    assurance coverage to the extent of his DBP mortgage indebtedness.
    Leuterio died consequently, DBP submitted a claim to Grepalife which refused
    to pay on the ground of concealment. DBP collected the mortgage indebtness by
    foreclosing the mortgage. The widow of Leuterio filed an action against Grepalife for
    the collection of the insurance proceeds, without including DBP as a party.
    ISSUE: Will the action prosper?
    HELD: Yes, the action will prosper.
    Since DBP has already foreclosed the mortgage, the insurance proceeds shall
    inure to the benefit of the heirs of Leuterio. Where the mortgagor pays the
    insurance premium under a group life insurance policy, making the loss payable to
    the mortgagee, the insurance is still on the interest of the mortgagor who continues
    to be a party to the contract. Such kind of police insurance upon life or health may
    pass by transfer, will or succession to any person, whether he has an insurable
    interest or not, and such person may recover whatever the insured might have
    recovered and therefore, the widow of Leuterio may recover from Grepalife.

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