After Jaime Canilang was diagnosed with “sinus tachycardia” and “acute bronchitis”, he applied for life insurance with Great Pacific Life Assurance Company (“Great Pacific”) naming his wife, petitioner Thelma Canilang, as his beneficiary. Jaime Canilang was issued ordinary life insurance Policy No. 345163, with the face value of P19,700, effective as of 9 August 1982.
After a year, Jaime died of “congestive heart failure,” “anemia,” and “chronic anemia.”2 Petitioner, widow and beneficiary of the insured, filed a claim with Great Pacific which the insurer denied on 5 December 1983 upon the ground that the insured had concealed material information from it.