Chartis vs. Cyber City case digest presentation

Insurance

1. CYBER CITY TELESERVICES, LTD. CHARTIS PHILIPPINES INSURANCE, INC. (NOW AIG PHILIPPINES INSURANCE, INC.) G.R. No. 234299, March 03, 2021 CARANDANG, J.: V S FACTS

2. CYBER CITY TELESERVICES, LTD. CHARTIS PHILIPPINES INSURANCE, INC. (NOW AIG PHILIPPINES INSURANCE, INC.) V G.R. No. 234299, March 03, 2021 CARANDANG, J.: FACTS S Cyber City (CCTL) applied with Chartis for Insurance. "Placing Instructions" were transmitted to Chartis CCTL requested several extensions to pay the premiums CCTL failed to pay Chartis demanded payments of premiums Payment was still not made Chartis filed a suit for sum of money

3. CYBER CITY TELESERVICES, LTD. CHARTIS PHILIPPINES INSURANCE, INC. (NOW AIG PHILIPPINES INSURANCE, INC.) V G.R. No. 234299, March 03, 2021 CARANDANG, J.: FACTS S CCTL’s Contention: Did not authorize any person/entity to accept Chartis ’ offer Invoked Section 77. Thus, policies were not binding Chartis ’ Contention: The policies were valid and binding It extended a 90-day period for payment of premiums It already exposed to the risk insured against

4. CYBER CITY TELESERVICES, LTD. CHARTIS PHILIPPINES INSURANCE, INC. (NOW AIG PHILIPPINES INSURANCE, INC.) V G.R. No. 234299, March 03, 2021 CARANDANG, J.: FACTS S Ruling of the RTC Rule in favor of Chartis Found an exception to Section 77 Chartis had granted CCTL an extension of credit Ruling of the CA I nsur C hartis cannot demand payment of premiums. No exceptions applies in this case No payment of premiums was made

5. CYBER CITY TELESERVICES, LTD. CHARTIS PHILIPPINES INSURANCE, INC. (NOW AIG PHILIPPINES INSURANCE, INC.) V G.R. No. 234299, March 03, 2021 CARANDANG, J.: FACTS S Cyber City (CCTL) applied with Chartis for Insurance. "Placing Instructions" were transmitted to Chartis CCTL requested several extensions to pay the premiums Chartis demanded payments of premiums Chartis filed a suit for sum of money CCTL invoked Section 77, policies were not binding Chartis already exposed to the risk insured against RTC ruled in favor of Chartis . CA reversed. ISSUE Is Chartis entitled to payment of the premiums? RULING YES, Chartis is entitled to payment of the premiums The SC held that a contract of insurance is valid and binding when the insurer extends credit to the insured as to the premium; the insurer is entitled to payment of premium as soon as the parties are agreed that the thing insured is exposed to the peril insured against.

6. CYBER CITY TELESERVICES, LTD. CHARTIS PHILIPPINES INSURANCE, INC. (NOW AIG PHILIPPINES INSURANCE, INC.) V G.R. No. 234299, March 03, 2021 CARANDANG, J.: FACTS S The SC make the following summation: First , if the insured paid the premium, the insurer's liability attaches correspondingly. Second , if the insured did not pay the premium and the parties did not agree that the insurer's liability has attached, then there is no valid or binding contract of insurance. Third , if the insured did not actually pay the premium but the parties have agreed that the insurer's liability has attached, then the insured is considered to have extended credit on the premium .

7. CYBER CITY TELESERVICES, LTD. CHARTIS PHILIPPINES INSURANCE, INC. (NOW AIG PHILIPPINES INSURANCE, INC.) V G.R. No. 234299, March 03, 2021 CARANDANG, J.: FACTS S The instant case falls under the third situation . The parties had agreed that Chartis was already liable to indemnify CCTL if the contingencies occurred from January 20, 2005 onward, even though CCTL had not actually paid the premium. Chartis bore upon itself the costs of the policies in advance. CCTL was deemed to have paid the premium on credit and was supposed to make actual payment within a 90-day period.

8. CYBER CITY TELESERVICES, LTD. CHARTIS PHILIPPINES INSURANCE, INC. (NOW AIG PHILIPPINES INSURANCE, INC.) V G.R. No. 234299, March 03, 2021 CARANDANG, J.: FACTS S DOCTRINE: A contract of insurance is valid and binding when the insurer extends credit to the insured as to the premium and the insurer is entitled to payment of premium as soon as the parties are agreed that the thing insured is exposed to the peril insured against.