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    TAN vs. CA

    Uploaded by

    Oscar E Valero
    The sons of Tan Lee Siong filed a claim for life insurance proceeds after his death from hepatoma, but the insurance company denied the claim and rescinded the policy due to alleged misrepresentations in the application. The sons filed a complaint that was dismissed. They argued on appeal that the insurance company could no longer rescind the contract as rescission must be done within two years of the policy becoming active and before any legal action. However, the court held that the incontestability clause only precludes defenses related to health and past diseases if the policy has been active for two years during the insured's lifetime, and that a policy is no longer in force after death.

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    TAN vs. CA

    Uploaded by

    Oscar E Valero
    156 views1 page
    The sons of Tan Lee Siong filed a claim for life insurance proceeds after his death from hepatoma, but the insurance company denied the claim and rescinded the policy due to alleged misrepresentations in the application. The sons filed a complaint that was dismissed. They argued on appeal that the insurance company could no longer rescind the contract as rescission must be done within two years of the policy becoming active and before any legal action. However, the court held that the incontestability clause only precludes defenses related to health and past diseases if the policy has been active for two years during the insured's lifetime, and that a policy is no longer in force after death.

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    CASE DIGEST

    Original Title

    39. TAN vs. CA

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    The sons of Tan Lee Siong filed a claim for life insurance proceeds after his death from hepatoma, but the insurance company denied the claim and rescinded the policy due to alleged misrepresentations in the application. The sons filed a complaint that was dismissed. They argued on appeal that the insurance company could no longer rescind the contract as rescission must be done within two years of the policy becoming active and before any legal action. However, the court held that the incontestability clause only precludes defenses related to health and past diseases if the policy has been active for two years during the insured's lifetime, and that a policy is no longer in force after death.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    156 views1 page

    TAN vs. CA

    Uploaded by

    Oscar E Valero
    The sons of Tan Lee Siong filed a claim for life insurance proceeds after his death from hepatoma, but the insurance company denied the claim and rescinded the policy due to alleged misrepresentations in the application. The sons filed a complaint that was dismissed. They argued on appeal that the insurance company could no longer rescind the contract as rescission must be done within two years of the policy becoming active and before any legal action. However, the court held that the incontestability clause only precludes defenses related to health and past diseases if the policy has been active for two years during the insured's lifetime, and that a policy is no longer in force after death.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    39. Tan vs.

    CA (174 SCRA 403)


    Facts: Tan Lee Siong, applied and issued policy on November, 1973 for life
    insurance, with his sons as beneficiary. "On April 26, 1975, Tan Lee Siong died of
    hepatoma . His sons then filed with insurancecompany their claim for the proceeds
    of the life insurance policy. However, the insurance company denied petitioners
    claim and rescinded the policy by reason of the alleged misrepresentation and
    concealment of material facts made by the deceased Tan Lee Siong in his
    application for insurance. Tan brothers then filed a complaint against the company
    with the Office of the Insurance Commissioner, which dismissing petitioners
    complaint. The Court of Appeals dismissed the petitioners appeal from the
    Insurance Commissioners decision for lack of merit. The petitioners contend that
    the respondent company no longer had the right to rescind the contract of insurance
    as rescission must allegedly be done during the lifetime of the insured within two
    years and prior to the commencement of action.

    Issue: Whether or not the insurance company is already precluded from raising the
    defense of false representation or concealment because of incontestability clause?
    HEld: The so-called "incontestability clause" precludes the insurer from raising the
    defenses of false representations or concealment of material facts insofar as health
    and previous diseases are concerned if the insurance has been in force for at least
    two years during the insureds lifetime. The phrase "during the lifetime" found in
    Section 48 simply means that the policy is no longer considered in force after the
    insured has died. The key phrase in the second paragraph of Section 48 is "for a
    period of two years."cralaw virtu

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