HILARIO GERCIO, plaintiff-appellee, vs.

SUN LIFE ASSURANCE

OF CANADA, ET AL., defendants. SUN LIFE ASSURANCE OF
CANADA, appellant.
G.R. No. 23703
September 28, 1925
Facts: Sun Life Assurance Co. of Canada issued insurance policy on the life of Hilario Gercio naming his
wife Andrea Zialcita,as beneficiary should she survive him; otherwise to the executors, administrators, or
assigns of the insured. The policy also contained a schedule of reserves, amounts in cash, paid-up
policies, and renewed insurance, guaranteed. The policy did not include any provision reserving to the
insured the right to change the beneficiary. Andrea Zialcita was convicted of the crime of adultery. Then a
decree of divorce was issued.
Hilario Gercio notified the Sun Life Assurance Co. of Canada that he had revoked his donation to Andrea
Zialcita, and designated his present wife, Adela Garcia de Gercio, as the beneficiary of the policy. But the
insurance company refuse.
Issue: whether or not the insured may change the beneficiary, the former wife to name his actual wife,
where the insured and the beneficiary have been divorced?
Ruling: If the husband wishes to retain to himself the control and ownership of the policy he may so
provide in the policy. But if the policy contains no provision authorizing a change of beneficiary without the
beneficiary's consent, the insured cannot make such change. Accordingly, it is held that a life insurance
policy of a husband made payable to the wife as beneficiary, is the separate property of the beneficiary
and beyond the control of the husband.
As to the effect produced by the divorce, the Philippine Divorce Law, Act No. 2710, merely provides in
section 9 that the decree of divorce shall dissolve the community property as soon as such decree
becomes final. There is no provision in the Philippine Law permitting the beneficiary in a policy for the
benefit of the wife of the husband to be changed after a divorce. It must follow, therefore, in the absence
of a statute to the contrary, that if a policy is taken out upon a husband's life the wife is named as
beneficiary therein, a subsequent divorce does not destroy her rights under the policy.
The rights of a beneficiary in an ordinary life insurance policy become vested upon the issuance of the
policy, and can thereafter, during the life of the beneficiary, be defeated only as provided by the terms of
the policy.