G.R. No. 175666, July 29, 2013
FACTS:
Delia Sotero (Sotero) took out a life insurance policy from Manila Bankers Life Insurance Corporation (Bankers Life), designating respondent Cresencia P. Aban (Aban), her niece, as her beneficiary. When the insurance policy had been in force for more than two years and seven months, Sotero died. Respondent filed a claim for the insurance proceeds on July 9, 1996. Petitioner conducted an investigation into the claim and found that Sotero was sickly since 1990 and the respondent was the one who filed the insurance application, and designated herself as the beneficiary. Petitioner denied respondent’s claim on April 16, 1997 and refunded the premiums paid on the policy
Petitioner filed a civil case for rescission and/or annulment of the policy. Aban argued that petitioner’s cause of action was barred by prescription pursuant to Section 48 of the Insurance Code, which provides as follows: