SUN LIFE OF CANADA C ANADA (PHILIPPINES), INC. v. MA. DAISY S. SIBYA, et al., G.R. No. 211212, 0 !"#e 201$, %HIRD DI&ISION, (Re'e, J.) J.) [Doctrine]
Atty. Jesus Sibya, Jr. (Atty Atty. (Atty. Jesus Jr.) Jr.) applied for life insurance with Sun Life Li fe of Ca Cana nada da (P (Phi hili lipp ppin ines es), ), In Inc. c. (S (Sun un Li Life fe). ). In hi his s Ap Appl plic icat atio ion n fo forr Insurance, he indicated that he had sought adice for !idney proble"s. Sun Life approed the application on #ebruary $, %&&'. he policy indicated his wife and two sons *a. +aisy S. Sibya (*a. +aisy), Jesus *anuel S. Sibya III, and Jai"e Luis S. Sibya, as beneciaries and entitles the" to a death benet of P',&&&,&&&.&& should Atty. Jesus Jr. dies on or before #ebruary $, %&%', or a su" of "oney if he is still liing on the endow"ent date. -n *ay '', %&&', Atty. Atty. Jesus Jr. died as a result of a gunshot wound in San Joauin, Iloilo. As such, *a. +aisy led a Clai"ant/s State"ent with Sun Life to see! s ee! the death benets indicated in his insurance policy. policy. Sun Life denied the clai" on the ground that the details on Atty. Jesus Jr./s Jr ./s "edical history were not disclosed in his application. Si"ultaneously Si"ultaneously,, Sun Life tendered a chec! representing the refund of the pre"iu"s paid by Atty.. Jesus Jr. Atty Jr. +espite repeated de"ands by *a. +aisy et al, Sun Life refused to heed the reuests and instead led a Co"plaint for 0escission of Atty. Jesus Jr./s Jr ./s insurance policy. policy. In contrary, *a. +aisy et al clai"ed that Atty. Jesus Jr. did not co""it "isrepresentation in his application for insurance. hey aerred that Atty. Jesus Jr Jr.. was in good faith when he signed the insurance application and een authori1ed Sun Life to inuire further into his "edical history for erication purposes.
ISSUE Is Sun Life of Canada obligated to release the life insurance proceeds to +aisy S. Sibya 2 the widow of Jesus Sibya Jr.3 Jr.3
RULING Ye. he liability of Sun Life is classied as an obligation with a period, for whose fulll"ent a day certain has been 4ed although it "ay not be !nown when, shall be de"andable only when that day co"es. 5hen Atty. Jesus Jr. died on *ay '', %&&' prior to #ebruary $, %&%', the arrial of the period e6ects the de"andability of the obligation. *oreoer, the Court a6ir"ed that Atty. Jesus Jr. did not co""it any "aterial conceal"ent and "isrepresentation in his insurance application. As proided in Section 78 of the Insurance Code, an insurer is gien two (%) years fro" the e6ectiity of a life insurance contract and while the insured is alie to discoer or proe that the policy is oid ab initio or is rescindible by reason of the fraudulent conceal"ent or "isrepresentation of the insured or his agent. After the twoyear period lapses, or when the insured dies within the period, the insurer "ust "a!e good on the policy, een though the policy was obtained by fraud, conceal"ent, or "isrepresentation. Sun Life had all the "eans of ascertaining the facts allegedly concealed by the applicant, gien there are disclosures, waier and authori1ation to inestigate e4ecuted by Atty. Jesus Jr.. Sun Life failed to clearly and satisfactorily establish the intent to defraud on the part of the insured. 9ence, Sun Life is liable to pay the life insurance proceeds to *a. +aisy et al.
