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    Filipinas Vs Nava May 20, 1966

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    Alvin-Evelyn Guloy
    This document summarizes a Supreme Court case regarding the validity of payments made on life insurance policies during WWII using Japanese military notes. It finds that: 1) Payments made in Japanese military notes on pre-war contractual obligations, like insurance premiums, are valid payments. 2) Life insurance policies involve a contractual obligation where the insured must pay premiums to avoid lapse, making the insured a debtor and insurer a creditor regarding premium payments. 3) Regulations requiring withholding of pre-war policy payments made in fiat currency are of doubtful validity if they suspend valid policy provisions or impair contractual obligations. 4) Violation of a policy's loan clause entitles the insured to resc

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    Filipinas Vs Nava May 20, 1966

    Uploaded by

    Alvin-Evelyn Guloy
    151 views1 page
    This document summarizes a Supreme Court case regarding the validity of payments made on life insurance policies during WWII using Japanese military notes. It finds that: 1) Payments made in Japanese military notes on pre-war contractual obligations, like insurance premiums, are valid payments. 2) Life insurance policies involve a contractual obligation where the insured must pay premiums to avoid lapse, making the insured a debtor and insurer a creditor regarding premium payments. 3) Regulations requiring withholding of pre-war policy payments made in fiat currency are of doubtful validity if they suspend valid policy provisions or impair contractual obligations. 4) Violation of a policy's loan clause entitles the insured to resc

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    insurance principles

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    Filipinas vs Nava May 20, 1966

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    This document summarizes a Supreme Court case regarding the validity of payments made on life insurance policies during WWII using Japanese military notes. It finds that: 1) Payments made in Japanese military notes on pre-war contractual obligations, like insurance premiums, are valid payments. 2) Life insurance policies involve a contractual obligation where the insured must pay premiums to avoid lapse, making the insured a debtor and insurer a creditor regarding premium payments. 3) Regulations requiring withholding of pre-war policy payments made in fiat currency are of doubtful validity if they suspend valid policy provisions or impair contractual obligations. 4) Violation of a policy's loan clause entitles the insured to resc

    Copyright:

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

    Filipinas Vs Nava May 20, 1966

    Uploaded by

    Alvin-Evelyn Guloy
    This document summarizes a Supreme Court case regarding the validity of payments made on life insurance policies during WWII using Japanese military notes. It finds that: 1) Payments made in Japanese military notes on pre-war contractual obligations, like insurance premiums, are valid payments. 2) Life insurance policies involve a contractual obligation where the insured must pay premiums to avoid lapse, making the insured a debtor and insurer a creditor regarding premium payments. 3) Regulations requiring withholding of pre-war policy payments made in fiat currency are of doubtful validity if they suspend valid policy provisions or impair contractual obligations. 4) Violation of a policy's loan clause entitles the insured to resc

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 1

    No. L-20552. May 20, 1966.

    FILIPINAS LIFE ASSURANCE Co., ET AL., petitioners, vs. GONZALO P. NAVA, respondent.
    Obligations and contracts; Payment of prewar obligations in war notes is valid.—Payments made in Japanese
    military notes on account of contractual obligations entered into before the war are valid payments for all legal
    intents and purposes. (Haw Pia vs. China Banking Corporation, 80 Phil. 604).
    Insurance; Insured is a debtor of the insurer.—Petitioners maintain that the Haw Pia case did not settle the question
    of the valuation of premium payments in Japanese military notes
    211

    VOL. 17, MAY 20, 1966


    211
    Filipinas Life Assurance Co., et al. vs. Nava
    during the war on life insurance policies because the insured is by no means a debtor of the insurer, nor is the insurer
    his creditor, considering that there is absolutely no obligation on his part to pay the premiums. There is no merit in
    this contention. A life. insurance policy involves a contractual obligation wherein the insured becomes duty bound
    to pay the premiums agreed upon, lest he runs the risk of having his insurance policy lapse if he fails to pay such
    premiums. The fact that the insurance policy contains an automatic premium payment clause cannot divest such
    policy of its contractual nature, for the result of such failure would only be for him to pay the premium plus the
    corresponding interest depending upon the condition of the policy. In effect, therefore, the payment of premiums on
    the life insurance policies were made by a debtor to a creditor.
    Same; When regulations of Insurance Commissioner withholding payments on prewar policies is void.—The
    regulations issued by the Insurance Commissioner, which required the withholding of the payments made in fiat
    currency of the premiums on insurance policies issued before the war subject to whatever adjustment that may be
    made after the relationship between debtor and creditor shall have been established, are of doubtful validity if their
    effect is to suspend the effectivity of a provision or clause embodied in a valid insurance policy for that would
    partake of the nature of a regulation the effect of which would be to infringe or impair a contractual obligation in
    violation of Section 1 (10), Article III, of the Constitution, (Lim vs. Register of Deeds, 82 Phil. 789).
    Same; Rescission.—Violation by the insurer of the loan clause in a life insurance policy entitles the insured to
    rescind the policy (Sec. 69, Insurance Law).
    Same; Rescission of policies; Insured is entitled to return of premiums paid.—The Insurance Law does not contain
    an express provision as to what the court should do in cases of rescission of an insurance policy under Section 69;
    hence, pursuant to Article 16 of the Old Civil Code, the provision that should apply is that embodied in Article 1295
    of the same Code. And said Article 1295 provides the rescission makes necessary the return of the things which
    were the subject matter of the contract, with the fruits, and of the price paid, with interest thereon. This is the
    majority rule in American Jurisprudence (48 A.L.R. 110–11).
    PETITION for review by certiorari of a decision of the Court of Appeals.

    The facts are stated in the opinion of the Court,


         Araneta, Mendoza & Papa for petitioners.
         Bengzon, Villegas & Zarraga and G. Advincula for respondent. Filipinas Life Assurance Co,, et al. vs. Nava, 17
    SCRA 210, No. L-20552 May 20, 1966

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