Effect – Payment Through an Agent

FACTS

An insurer which delivers to an insurance agent or insurance broker an insurance policy shall be deemed to have authorized such agent to receive on its behalf payment of any premium which is due on such policy.

On 16 January 1984, Valenzuela Hardwood entered into an agreement with Seven Brothers Shipping to load on board in its vessel M/V Seven Ambassador,  lauan round logs numbering 940 for shipment in Manila. On January 20, Hardwood insured the logs against loss and/or damage with defendant South Sea Surety for 2 Million. On January 24, Hardwood paid the premium for the insurance policy to Victorio Chua. On January 25, M/V Seven Ambassador sank resulting in the loss of the plaintiff’s insured logs. However, it was only in the morning of 30 January 1984 or 5 days after the vessel sank when his messenger tendered the check to defendant South Sea Surety and Insurance Co., Inc.

Topic: Payment through Agent 

FACTS

Malayan Insurance Company (MICO) issued to Coranacion Pinca Fire Insurance Policy on her property for the amount of P100K effective July 22, 1981 to July 22, 1982. On October 15, 1981, MICO cancelled the policy for non-payment of the premium and sent the corresponding notice to Pinca.

On December 24, 1981, Pinca paid the premium to Dominador Adora, MICO’s agent. The payment was remitted by Adora to MICO on January 15, 1982.

On January 18, 1982, Pinca’s property was completely burned. On February 5, the payment made by Pinca was returned by MICO to Adora, which Adora refused, on the ground that her policy was cancelled.

Pinca made demands for payment, which MICO rejected. With that, Pinca went to the Insurance Commission.