MAPALAD AISPORNA, petitioner, vs.

THE COURT phrases should not be studied as detached and isolated

OF APPEALS and THE PEOPLE OF THE expressions, but the whole and every part of the statute
PHILIPPINES, respondents. must be considered in fixing the meaning of any of its parts
and in order to produce harmonious whole. A statute must
Insurance Law; Criminal Law; Criminal be so construed as to harmonize and give effect to all its
Procedure; Statutory Construction; The definition of an provisions whenever possible. The meaning of the law, it
insurance agent as found in the second paragraph of Section must be borne in mind, is not to be extracted from any
189 of the Insurance Act is intended to define the word single part,
agent mentioned in the first and second paragraphs _______________
thereof which states to be considered an insurance agent the
solicitation must be for a compensation.The definition of
* FIRST DIVISION
an insurance agent as found in the second paragraph of 460
Section 189 is intended to define the word agent
mentioned in the first and second paragraphs of the 4 SUPREME
aforesaid section. More significantly, in its second 60 COURT REPORTS
paragraph, it is explicitly provided that the definition of an ANNOTATED
insurance agent is within the intent of Section 189. Hence Aisporna vs. Court of
Any person who for compensation x x x shall be Appeals
an insurance agent within the intent of this section, x x x.
portion or section or from isolated words and phrases,
Patently, the definition of an insurance agent under the
clauses or sentences but from a general consideration or
second paragraph holds true with respect to the agent
view of the act as a whole. Every part of the statute must be
mentioned in the other two paragraphs of the said section.
interpreted with reference to the context.
The second paragraph of Section 189 is a definition and
Same; Same; Same; Same; Receipt of compensation is
interpretative clause intended to qualify the term agent
essential for a person to be considered an insurance agent.
mentioned in both the first and third paragraphs of the
The criminal information charging a person of insurance
aforesaid section.
solicitation must state that it was for compensation,
Same; Same; Same; Same; Legislative intent must be
otherwise no conviction is warranted.In the case of Bolen
ascertained from a consideration of the whole statute; Words
vs. Stake, the provision of Section 3750, Snyders Compiled
and phrases and clauses should not be studied in isolation
Laws of Oklahoma 1909 is intended to penalize persons
or detached from the rest.Applying the definition of an
only who acted as insurance solicitors without license, and
insurance agent in the second paragraph to the agent
while acting in such capacity negotiated and concluded
mentioned in the first and second paragraphs would give
insurance contracts for compensation. It must be noted that
harmony to the aforesaid three paragraphs of Section 189.
the information, in the case at bar, does not allege that the
Legislative intent must be ascertained from a consideration
negotiation of an insurance contract by the accused with
of the statute as a whole. The particular words, clauses and
Eugenio Isidro was one for compensation. This allegation is
essential, and having been omitted, a conviction of the her to pay a fine of P500.00 with subsidiary
accused could not be sustained. It is well-settled in Our imprisonment in case of insolvency, and to pay the
jurisprudence that to warrant conviction, every element of costs.
the crime must be alleged and proved. Petitioner Aisporna was charged in the City Court
of Cabanatuan for violation of Section 189 of the
Plana, J., took no part.
Insurance Act on November 21, 1970 in an
PETITION for certiorari to review the judgment of the information which reads as follows:
3

That on or before the 21st day of June, 1969, in the City of

Court of Appeals.
Cabanatuan, Republic of the Philippines, and within the
jurisdiction of this Honorable Court, the above-named
The facts are stated in the opinion of the Court.
accused, did then and there, willfully, unlawfully and
feloniously act as agent in the solicitation or procurement of
DE CASTRO, J.:
an application for insurance by soliciting therefor the
application of one Eugenio S. Isidro, for and in behalf of
In this petition for certiorari, petitioner-accused
Perla Compania de Seguros, Inc., a duly organized
Aisporna seeks the reversal of the decision dated
insurance company, registered under the laws of the
August 14, 1974 in CA-G.R. No. 13243-CR entitled
1
Republic of the Philippines, resulting in the issuance of a
People of the Philippines, plaintiff-appellee, vs. Broad Personal Accident Policy No. 28PI-RSA 0001 in the
Mapalad Aisporna, defendant-appellant of respondent amount not exceeding FIVE THOUSAND PESOS
Court of Appeals affirming the judgment of the City (P5,000.00) dated June 21, 1969, without said accused
Court of Cabanatuan rendered on August 2, 1971
2 having first secured a certificate of authority to act as such
which found the petitioner guilty for having violated agent from the office of the Insurance Commissioner,
Section 189 of the Insurance Act (Act No. 2427, as Republic of the Philippines.
amended) and sentenced CONTRARY TO LAW.
_______________
The facts, as found by the respondent Court of
4

1 p. 21, Rollo. Appeals are quoted hereunder:

2 p. 11, CA Rollo. IT RESULTING: That there is no debate that since 7
March, 1969 and as of 21 June, 1969, appellants husband,
461
Rodolfo S. Aisporna was duly licensed by Insurance
VOL. 113, APRIL 12, 461 Commission as agent to Perla Compania de Seguros, with
1982 license to expire on 30 June, 1970, Exh. C; on that date, at
Aisporna vs. Court of Cabanatuan City, Personal Accident Policy, Exh. D was
Appeals issued by Perla thru its authorized representative, Rodolfo
S. Aisporna, for a period of twelve (12) months with Consequently, the trial court found herein petitioner
beneficiary as Ana M. Isidro, and for P5,000.00; apparently, guilty as charged. On appeal, the trial courts decision
insured died by violence during lifetime of policy, and for was affirmed by the respondent appellate court finding
reasons not explained in record, present information was the petitioner guilty of a violation of the first
filed by Fiscal, with assistance of private prosecutor,
paragraph of Section 189 of the Insurance Act. Hence,
charging wife of Rodolfo with violation of Sec. 189 of
this present recourse was filed on October 22, 1974.5
Insurance Law for having, wilfully, unlawfully, and
feloniously acted, In its resolution of October 28, 1974, this Court
6

_______________ resolved, without giving due course to this instant

petition, to require the respondent to comment on the
3 p. 10, CA Rollo. aforesaid petition. In the comment filed on December
7
4 pp. 21-22, Rollo.
20, 1974, the respondent, represented by the Office of
462 the Solicitor General, submitted that petitioner may
462 SUPREME COURT not be considered as having violated Section 189 of the
REPORTS Insurance Act. On April 3, 1975, petitioner submitted
8

ANNOTATED his Brief while the Solicitor General, on behalf of the

9

Aisporna vs. Court of respondent, filed a manifestation in lieu of a Brief on

10

Appeals May 3, 1975 reiterating his stand that the petitioner

as agent in the solicitation for insurance by soliciting has not violated Section 189 of the Insurance Act.
therefore the application of one Eugenio S. Isidro for and in _______________
behalf of Perla Compaa de Seguros, x x x without said
accused having first secured a certificate of authority to act
5 p. 7, Rollo.
6 p. 36, Rollo.
as such agent from the office of the Insurance Commission, 7 p. 51, Rollo.

Republic of the Philippines. 8 p. 58, Rollo.

and in the trial, People presented evidence that was 9 p. 69, Rollo.

hardly disputed, that aforementioned policy was issued 10 p. 71, Rollo.

with active participation of appellant wife of Rodolfo,

463
against which appellant in her defense sought to show that
being the wife of true agent, Rodolfo, she naturally helped
VOL. 113, APRIL 12, 463
him in his work, as clerk, and that policy was merely a 1982
renewal and was issued because Isidro had called by Aisporna vs. Court of
telephone to renew, and at that time, her husband, Rodolfo, Appeals
was absent and so she left a note on top of her husbands
desk to renew x x x.
In seeking reversal of the judgment of conviction, a certificate of authority to act as an agent of such company
petitioner assigns the following errors allegedly
11 as hereinafter provided. No person shall act as agent, sub-
committed by the appellate court: agent, or broker in the solicitation of procurement of
applications for insurance, or receive for services in
1. 1.THE RESPONDENT COURT OF APPEALS obtaining new insurance, any commission or other
ERRED IN FINDING THAT RECEIPT OF compensation from any insurance company doing business
COMPENSATION IS NOT AN ESSENTIAL in the Philippine Islands, or agent thereof, without first
ELEMENT OF THE CRIME DEFINED BY THE procuring a certificate of authority so to act from the
FIRST PARAGRAPH OF SECTION 189 OF THE Insurance Com-
_______________
INSURANCE ACT.
2. 2.THE RESPONDENT COURT OF APPEALS 11 p. 69, Rollo; p. 6, Brief for the Petitioner.
ERRED IN GIVING DUE WEIGHT TO EXHIBITS
F, F-1, TO F-17, INCLUSIVE SUFFICIENT TO 464
ESTABLISH PETITIONERS GUILT BEYOND 464 SUPREME COURT
REASONABLE DOUBT. 3. THE RESPONDENT REPORTS
COURT OF APPEALS ERRED IN NOT ANNOTATED
ACQUITTING HEREIN PETITIONER. Aisporna vs. Court of
Appeals
We find the petition meritorious. missioner, which must be renewed annually on the first day
The main issue raised is whether or not a person of January, or within six months thereafter. Such certificate
can be convicted of having violated the first paragraph shall be issued by the Insurance Commissioner only upon
of Section 189 of the Insurance Act without reference the written application of persons desiring such authority,
to the second paragraph of the same section. In other such application being approved and countersigned by the
words, it is necessary to determine whether or not the company such person desires to represent, and shall be
agent mentioned in the first paragraph of the upon a form approved by the Insurance Commissioner,
aforesaid section is governed by the definition of an giving such information as he may require. The Insurance
insurance agent found on its second paragraph. Commissioner shall have the right to refuse to issue or
renew and to revoke any such certificate in his discretion.
The pertinent provision of Section 189 of the
No such certificate shall be valid, however, in any event
Insurance Act reads as follows: after the first day of July of the year following the issuing of
No insurance company doing business within the such certificate. Renewal certificates may be issued upon
Philippine Islands, nor any agent thereof, shall pay any the application of the company.
commission or other compensation to any person for Any person who for compensation solicits or obtains
services in obtaining new insurance, unless such person insurance on behalf of any insurance company, or transmits
shall have first procured from the Insurance Commissioner
for a person other than himself an application for a policy of VOL. 113, APRIL 12, 465
insurance to or from such company or offers or assumes to 1982
act in the negotiating of such insurance, shall be Aisporna vs. Court of
an insurance agent within the intent of this section,and shall
thereby become liable to all the duties, requirements,
Appeals
liabilities, and penalties to which an agent of such company there and then acting as agent, and received the pay
is subject. thereofher defense that she was only acting as helper of
Any person or company violating the provisions of this her husband can no longer be sustained, neither her point
section shall be fined in the sum of five hundred pesos. On that she received no compensation for issuance of the policy
the conviction of any person acting as agent, sub-agent, or because
any person who for compensation solicits or obtains insurance on
broker, of the commission of any offense connected with the
behalf of any insurance company or transmits for a person other
business of insurance, the Insurance Commissioner shall than himself an application for a policy of insurance to or from
immediately revoke the certificate of authority issued to such company or offers or assumes to act in the negotiating of
him and no such certificate shall thereafter be issued to such insurance, shall be an insurance agent within the intent of
such convicted person. this section, and shall thereby become liable to all the duties,
requirements, liabilities, and penalties, to which an agent of such
A careful perusal of the above-quoted provision shows company is subject. paragraph 2, Sec. 189, Insurance Law,
that the first paragraph thereof prohibits a person
from acting as agent, sub-agent or broker in the now it is true that information does not even allege that
she had obtained the insurance,
solicitation or procurement of applications for
for compensation
insurance without first procuring a certificate of
authority so to act from the Insurance Commissioner, which is the gist of the offense in Section 189 of the
while its second paragraph defines who is an Insurance Law in its 2nd paragraph, but what appellant
insurance agent within the intent of this section and, apparently overlooks is that she is prosecuted not under the
finally, the third paragraph thereof prescribes the 2nd but under the 1st paragraph of Sec. 189 wherein it is
provided that,
penalty to be imposed for its violation.
No person shall act as agent, sub-agent, or broker, in the
The respondent appellate court ruled that the solicitation or procurement of applications for insurance, or
petitioner is prosecuted not under the second receive for services in obtaining new insurance any commission or
paragraph of Section 189 of the aforesaid Act but other compensation from any insurance company doing business
under its first paragraph. Thus in the Philippine Island, or agent thereof, without first procuring
a certificate of authority to act from the insurance commissioner,
x x x it can no longer be denied that it was appellants
which must be renewed annually on the first day of January, or
most active endeavors that resulted in issuance of policy to
within six months thereafter.
Isidro, she was
465
 therefore, there was no technical defect in the wording of Any person who for compensation x x x shall be
the charge, so that Errors 2 and 4 must be overruled.12 an insurance agent within the intent of this section, x x x.

From the above-mentioned ruling, the respondent Patently, the definition of an insurance agent under
appellate court seems to imply that the definition of an the second paragraph holds true with respect to the
insurance agent under the second paragraph of Section agent mentioned in the other two paragraphs of the
189 is not applicable to the insurance agent mentioned said section. The second paragraph of Section 189 is a
in the first paragraph. Paren- definition and interpretative clause intended to qualify
______________ the term agent mentioned in both the first and third
paragraphs of the aforesaid section.
12 pp. 25 and 26, Rollo. Applying the definition of an insurance agent in the
466 second paragraph to the agent mentioned in the first
466 SUPREME COURT and second paragraphs would give harmony to the
REPORTS aforesaid three paragraphs of Section 189. Legislative
ANNOTATED intent must be ascertained from a consideration of the
Aisporna vs. Court of statute as a whole. The particular words, clauses and
Appeals phrases should not be studied as detached and isolated
expressions, but the whole and every part of the
thetically, the respondent court concludes that under
statute must be considered in fixing the meaning of
the second paragraph of Section 189, a person is an
any of its parts and in order to produce harmonious
insurance agent if he solicits and obtains an insurance
whole. A statute must be so construed as to harmonize
13

for compensation, but, in its first paragraph, there is

and give effect to all its provisions whenever
no necessity that a person solicits an insurance for
possible The meaning of the
14

compensation in order to be called an insurance agent.

_______________
We find this to be a reversible error. As correctly
pointed out by the Solicitor General, the definition of 13 Araneta vs. Concepcion, 99 Phil. 709; Tamayo vs.
an insurance agent as found in the second paragraph Gsell, 35 Phil. 953; Lopez vs. El Hogar Filipino, 47 Phil.
of Section 189 is intended to define the word agent 249; Chartered Bank vs. Imperial, 48 Phil. 931.
mentioned in the first and second paragraphs of the 14 People vs. Polmon, 86 Phil. 350.

aforesaid section. More significantly, in its second

paragraph, it is explicitly provided that the definition 467
of an insurance agent is within the intent of Section VOL. 113, APRIL 12, 467
189. Hence 1982
 Aisporna vs. Court of We rule otherwise. Under the Texas Penal Code
Appeals 1911, Article 689, making it a misdemeanor for any
law, it must be borne in mind, is not to be extracted person for direct or indirect compensation to solicit
from any single part, portion or section or from insurance without a certificate of authority to act as an
isolated words and phrases, clauses or sentences but insurance agent, an information, failing to allege that
from a general consideration or view of the act as a the solicitor was to receive compensation either
whole. Every part of the statute must be interpreted
15 directly or indirectly, charges no offense. In the case
18

with reference to the context. This means that every of Bolen vs. Stake, the provision of Section 3750,
19

part of the statute must be considered together with Snyders Com-

the other parts, and kept subservient to the general _______________
intent of the whole enactment, not separately and 15 82 C.J.S., Section 345, pp. 699-700.
independently. More importantly, the doctrine of
16 16 Tamayo vs. Gsell, 35 Phil. 953.
associated words (Noscitur a Sociis) provides that 17 Co Kim Cham vs. Valdez Tan Keh & Dizon, 75 Phil. 371.

18 Jasper vs. State, 73 Tex. Cr. R 197; 164 S.W. 851.

where a particular word or phrase in a statement is 19 149 p. 1074, 11 Okla. Crim. 594.

ambiguous in itself or is equally susceptible of various

meanings, its true meaning may be made clear and 468
specific by considering the company in which it is 468 SUPREME COURT
found or with which it is associated.
17 REPORTS
Considering that the definition of an insurance ANNOTATED
agent as found in the second paragraph is also Aisporna vs. Court of
applicable to the agent mentioned in the first Appeals
paragraph, to receive a compensation by the agent is piled Laws of Oklahoma 1909 is intended to penalize
an essential element for a violation of the first persons only who acted as insurance solicitors without
paragraph of the aforesaid section. The appellate court license, and while acting in such capacity negotiated
has established ultimately that the petitioner-accused and concluded insurance contracts for compensation. It
did not receive any compensation for the issuance of must be noted that the information, in the case at bar,
the insurance policy of Eugenio Isidro. Nevertheless, does not allege that the negotiation of an insurance
the accused was convicted by the appellate court for, contract by the accused with Eugenio Isidro was one
according to the latter, the receipt of compensation for for compensation. This allegation is essential, and
issuing an insurance policy is not an essential element having been omitted, a conviction of the accused could
for a violation of the first paragraph of Section 189 of not be sustained. It is well-settled in Our
the Insurance Act.
jurisprudence that to warrant conviction, every
element of the crime must be alleged and proved.
20

After going over the records of this case, We are

fully convinced, as the Solicitor General maintains,
that accused did not violate Section 189 of the
Insurance Act.
WHEREFORE, the judgment appealed from is
reversed and the accused is acquitted of the crime
charged, with costs de oficio.
SO ORDERED.