Tan Lee Siong was issued a policy by Philamlife on Nov. 6, 1973 for P80,000. On April 26, 1975, Tan died of hepatoma. His beneficiaries then filed a claim with Philamlife for the proceeds of the insurance.The claim was denied on the ground of misrepresentation and concealment of material facts.
The beneficiaries contend that Philamlife can no longer rescind the contract on the ground of misrepresentation as rescission must allegedly be done “during the lifetime of the insured” within two years and prior to the commencement of the action following the wording of Sec. 48, par. 2.