Yu Pang Cheng v CA Doctrine: Concealment of Medical Records Facts: 1. On Se tem!er "# 1$"%# Yu Pang &ng su!

mitted his a lication for insurance consisting of the medical declaration made !' him to the medical e(aminer and agent of defendant. ). Se tem!er *# he aid the first remium in the sum of P"$1.+%# defendant issued to the insured Polic' ,o. *1)*"*. -. On Decem!er )+# 1$"%# the insured entered St. .u/e0s 1os ital for medical treatment !ut he died on Fe!ruar' )+# 1$"1. According to the death certificate# he died of 2infiltrating medullar' carcinoma# 3rade 4# advanced cardiac and of lesser curvature# stomach metastases s leen.2 4. Plaintiff# !rother and !eneficiar' of the insured# demanded the a'ment of the roceeds of the insurance olic'. ". Defendant# in its ans5er# set u the defense that the insured 5as guilt' of misre resentation and concealment of material facts in that he gave false and untruthful ans5ers to certain 6uestions as/ed him in his a lication for insurance 5hich 5ere material to the ris/ insured against and have the effect of avoiding the insurance olic'.7he insured# in his a lication for insurance# articularl' in his declarations to the e(amining h'sician# stated the follo5ing in ans5ering the 6uestions ro ounded to him:
214. 1ave 'ou ever had an' of the follo5ing diseases or s'm toms8 &ach 6uestion must !e read and ans5ered 2Yes2 or 2,o2. ((( ((( ((( 3astritis# 9lcer of the Stomach or an' disease of that organ8 ,o. :ertigo# Di;;iness# Fainting<s ells or 9nconscious8 ,o. Cancer# 7umors or 9lcers of an' /ind8 ,o. 1". 1ave 'ou ever consulted an' h'sician not included in an' of the a!ove ans5ers8 3ive names and address or h'sicians list ailments or accidents and date. ,o.2

=. >t seems that on ?anuar' )$ u to Fe!uar' 11# >t a ears that the insured entered the Chinese 3eneral 1os ital for medical treatment # he com lained of di;;iness# anemia# a!dominal ains and tarr' stools# and in the evening of his admission he had several a!dominal ains and his discharges 5ere 5ith !lac/ tarr' stools and felt di;;' and 5ea/. +. 7he histor' of his illness sho5s that the same 2started a 'ear ago as fre6uent di;;iness.2 *. An @<Ra' icture of his stomach sho5ed that his illness 5as 2 e tic ulcer# !leeding.2 *. 7his 5as months !efore his a lication for life insurance# !ut he still said 2no2# to the related 6uestions ro ounded him in the said a lication. >ssue: Ahether or not >nsured is 3uilt' of Concealment8 1eld: Yes#Our >nsurance la5 rovides that 2 A neglect to communicate that 5hich a art' /no5s and ought to communicate# is called concealment2 BSection )"# Act ,o. )4)+C. Ahether intentional or unintentional# the concealment entitles the insurer to rescind the contract of insurance BSection )=C. Our la5 even re6uires the insured to communicate to the insurer all facts 5ithin his /no5ledge 5hich are material to the contract and 5hich the other art' has not the means of ascertaining BSection )+C# and the materialit' is to !e determined not !' the event !ut solel' !' the ro!a!le and reasona!le influence of the facts u on the art' to 5hom the communication is due BSection -%C.