Effect – Payment Through an Agent
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.