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    Great Pacific V CA

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    WARLYN DUMO
    This case involves a dispute over life insurance proceeds between Great Pacific Life Assurance Corp. (Grepalife) and the widow of Dr. Wilfredo Leuterio. Grepalife had issued a group life insurance policy to Development Bank of the Philippines (DBP) to insure the lives of eligible housing loan mortgagors. Dr. Leuterio had applied for coverage as a DBP housing debtor. When Dr. Leuterio passed away, Grepalife denied the death claim alleging concealment. The Court ruled that (1) a mortgage redemption insurance protects both the mortgagee and mortgagor, with the mortgagor continuing as a party to the contract, and (

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    Great Pacific V CA

    Uploaded by

    WARLYN DUMO
    80 views2 pages
    This case involves a dispute over life insurance proceeds between Great Pacific Life Assurance Corp. (Grepalife) and the widow of Dr. Wilfredo Leuterio. Grepalife had issued a group life insurance policy to Development Bank of the Philippines (DBP) to insure the lives of eligible housing loan mortgagors. Dr. Leuterio had applied for coverage as a DBP housing debtor. When Dr. Leuterio passed away, Grepalife denied the death claim alleging concealment. The Court ruled that (1) a mortgage redemption insurance protects both the mortgagee and mortgagor, with the mortgagor continuing as a party to the contract, and (

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    8. Great Pacific v CA

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    This case involves a dispute over life insurance proceeds between Great Pacific Life Assurance Corp. (Grepalife) and the widow of Dr. Wilfredo Leuterio. Grepalife had issued a group life insurance policy to Development Bank of the Philippines (DBP) to insure the lives of eligible housing loan mortgagors. Dr. Leuterio had applied for coverage as a DBP housing debtor. When Dr. Leuterio passed away, Grepalife denied the death claim alleging concealment. The Court ruled that (1) a mortgage redemption insurance protects both the mortgagee and mortgagor, with the mortgagor continuing as a party to the contract, and (

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    80 views2 pages

    Great Pacific V CA

    Uploaded by

    WARLYN DUMO
    This case involves a dispute over life insurance proceeds between Great Pacific Life Assurance Corp. (Grepalife) and the widow of Dr. Wilfredo Leuterio. Grepalife had issued a group life insurance policy to Development Bank of the Philippines (DBP) to insure the lives of eligible housing loan mortgagors. Dr. Leuterio had applied for coverage as a DBP housing debtor. When Dr. Leuterio passed away, Grepalife denied the death claim alleging concealment. The Court ruled that (1) a mortgage redemption insurance protects both the mortgagee and mortgagor, with the mortgagor continuing as a party to the contract, and (

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    GREAT PACIFIC LIFE ASSURANCE CORP v.

    COURT OF APPEALS AND


    MEDARDA V. LEUTERIO, G.R. No. 113899 October 13, 1999

    FACTS:
    A contract of group life insurance was executed between petitioner Great Pacific Life
    Assurance Corporation (hereinafter Grepalife) and Development Bank of the Philippines
    (hereinafter DBP). Grepalife agreed to insure the lives of eligible housing loan
    mortgagors of DBP.

    Dr. Wilfredo Leuterio, a physician and a housing debtor of DBP applied for membership
    in the group life insurance plan and was consequently issued an insurance coverage
    certificate. Leuterio died and when DBP submitted a death claim, Grepalife denied the
    claim on the ground of concealment. Thereafter, DBP collected the debt from the
    mortgagor and took the necessary action of foreclosure on the residential lot of private
    respondent.

    When the widow of Leuterio filed an action to claim the insurance proceeds, petitioner
    alleged that she was is the real party in interest.

    ISSUES AND RULINGS

    1. What is a mortgage redemption insurance?


    A mortgage redemption insurance is a device for the protection of both the
    mortgagee and the mortgagor. On the part of the mortgagee, it has to enter into
    such form of contract so that in the event of the unexpected demise of the
    mortgagor during the subsistence of the mortgage contract, the proceeds from
    such insurance will be applied to the payment of the mortgage debt, thereby
    relieving the heirs of the mortgagor from paying the obligation. In a similar vein,
    ample protection is given to the mortgagor under such a concept so that in the
    event of death; the mortgage obligation will be extinguished by the application of
    the insurance proceeds to the mortgage indebtedness. Consequently, where the
    mortgagor pays the insurance premium under the group insurance policy, making
    the loss payable to the mortgagee, the insurance is on the mortgagor's interest,
    and the mortgagor continues to be a party to the contract. In this type of policy
    insurance, the mortgagee is simply an appointee of the insurance fund, such
    loss-payable clause does not make the mortgagee a party to the contract.

    2. Who is the real-party in interest in a mortgage redemption insurance?


    Insured, being the person with whom the contract was made, is primarily the
    proper person to bring suit thereon. * * * Subject to some exceptions, insured
    may thus sue, although the policy is taken wholly or in part for the benefit of
    another person named or unnamed, and although it is expressly made payable to
    another as his interest may appear or otherwise. * * * Although a policy issued to
    a mortgagor is taken out for the benefit of the mortgagee and is made payable to
    him, yet the mortgagor may sue thereon in his own name, especially where the
    mortgagee's interest is less than the full amount recoverable under the policy, * *
    *. Insured may be regarded as the real party in interest, although he has
    assigned the policy for the purpose of collection, or has assigned as collateral
    security any judgment he may obtain.

    And since a policy of insurance upon life or health may pass by transfer, will or
    succession to any person, whether he has an insurable interest or not, and such
    person may recover it whatever the insured might have recovered, 14 the widow
    of the decedent Dr. Leuterio may file the suit against the insurer, Grepalife.

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