Enriquez v.

SunLife- Insurance Policy

41 PHIL 269
Facts:
>  On Sept. 24 1917, Herrer made an application to SunLife through
its office in Manila for life annuity.
>  2 days later, he paid the sum of 6T to the company’s anager in its
Manila office and was given a receipt.
>  On Nov. 26, 1917, the head office gave notice of acceptance by
cable to Manila.  On the same date, the Manila office prepared a
letter notifying Herrer that his application has been accepted and
this was placed in the ordinary channels of transmission, but as far
as known was never actually mailed and never received by Herrer.
>  Herrer died on Dec. 20, 1917.  The plaintiff as administrator of
Herrer’s estate brought this action to recover the 6T paid by the
deceased.

Issue:

Whether or not the insurance contract was perfected.

Held:
NO.
The contract for life annuity was NOT perfected because it had NOT
been proved satisfactorily that the acceptance of the application
ever came to the knowledge of the applicant.  An acceptance of an
offer of insurance NOT actually or constructively communicated to
the proposer does NOT make a contract of insurane, as the locus
poenitentiae is ended when an acceptance has passed beyond the
control of the party.

NOTE: Life annuity is the opposite of a life insurance.  In life

annuity, a big amount is given to the insurance company, and if after
a certain period of time the insured is stil living, he is entitled to
regular smaller amounts for the rest of his life. Examples of Life
annuity are pensions.  Life Insurance on the other hand, the insured
during the period of the coverage makes small regular payments
and upon his death, the insurer pays a big amount to his
beneficiaries.