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Makati Tuscany v CA G.R. No. 95546 November 6, 1992
. !e""osi""o
#acts$
American %nternationa" &n'er(riters issue' a )o"icy in *avor
o* Makati TuscanyCon'ominium Cor)oration (it+ a tota" )remium o*
466,1-.-5. T+e com)any
issue' a re)"acement )o"icy. remium (as a/ain )ai'. %n 1904, t+e
)o"icy (as a/ain
rene(e' an' )rivate res)on'ent issue' to )etitioner anot+er
)o"icy. T+e )etitioner
)ai' 152,--- )esos t+en re*use' to *urnis+ t+e ba"ance.
T+e com)any "e' an action to recover t+e un)ai' ba"ance o*
14,1-.-5.
T+e con'ominium a'ministration e)"aine' t+at it 'iscontinue' t+e
)ayment o*
)remiums because t+e )o"icy 'i' not contain a cre'it c"ause in
its *avor an' t+at t+e
acce)tance o* )remiums 'i'n3t (aive any o* t+e com)any ri/+ts to
'eny "iabi"ity on
any c"aim un'er t+e )o"icy arisin/ be*ore suc+ )ayments or a*ter
t+e e)iration o*t+e cre'it c"ause o* t+e )o"icy an' )rior to
)remium )ayment, "oss (asn3t covere'.
etitioner sou/+t *or a re*un'. T+e tria" court 'ismisse' t+e
com)"aint an'
counterc"aim o(in/ to t+e ar/ument t+at )ayment o* t+e )remiums
o* t+e )o"icies
(ere ma'e 'urin/ t+e "i*etime or term o* sai' )o"icies, so risk
attac+e' un'er t+e
)o"icies.
T+e Court o* A))ea"s or'ere' )etitioner to )ay t+e ba"ance o*
t+e )remiums o(in/
to t+e reason t+at it (as )art o* an in'ivisib"e ob"i/ation.
etitioner no( asserts t+at its )ayment by insta""ment o* t+e
)remiums *or t+einsurance )o"icies inva"i'ate' t+em because o* t+e
)rovisions o* ec. o* t+e
%nsurance Co'e 'isc"aimin/ "iabi"ity *or "oss *or occurrin/
be*ore )ayment o*
)remiums.
%ssue$ +et+er )ayment by insta""ment o* t+e )remiums 'ue on an
insurance )o"icy
inva"i'ates t+e contract o* insurance, in vie( o* ec. o* .7.
612
8e"'$ u'/ment arme'.
Ratio$
ec. . An insurer is entit"e' to t+e )ayment o* t+e )remium as
soon as t+et+in/ is e)ose' to t+e )eri" insure' a/ainst.
Not(it+stan'in/ any a/reement to t+e
contrary, no )o"icy or contract o* insurance issue' by an
insurance com)any is va"i'
an' bin'in/ un"ess an' unti" t+e )remium t+ereo* +as been )ai',
ece)t in t+e case
o* a "i*e or an in'ustria" "i*e )o"icy (+enever t+e /race )erio'
)rovision a))"ies.
etitioner conc"u'e' t+at t+ere cannot be a )er*ecte' contract o*
insurance u)on
mere )artia" )ayment o* t+e )remiums because un'er ec. o* t+e
%nsurance
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Co'e, no contract o* insurance is va"i' an' bin'in/ un"ess t+e
)remium t+ereo* +as
been )ai', not(it+stan'in/ any a/reement to t+e contrary. As a
conse:uence,
)etitioner seeks a re*un' o* a"" )remium )ayments ma'e on t+e
a""e/e' inva"i'
insurance )o"icies.
e +o"' t+at t+e sub;ect )o"icies are va"i' even i* t+e )remiums
(ere )ai' oninsta""ments. T+e recor's c"ear"y s+o( t+at )etitioner
an' )rivate res)on'ent
inten'e' sub;ect insurance )o"icies to be bin'in/ an' e
insta""ments a"t+ou/+ it re*use' to )ay t+e
ba"ance.
%t a))earin/ *rom t+e )ecu"iar circumstances t+at t+e )arties
actua""y inten'e' to
make t+ree => insurance contracts va"i', e
