Documente Academic
Documente Profesional
Documente Cultură
FACTS: Mrs. Nario was issued by respondent Philamlife a life insurance policy. She designated her
husband, Delfin and their unemancipated minor son, Ernesto, as her irrevocable beneficiaries. She
applied for a loan on the policy for the school expenses of her son. The loan application bore the
signature of Delfin as the father-guardian of minor son and as the legal administrator of the minor's
properties. Philamlife denied the application because the written consent for the minor son must not only
be given by his father as legal guardian but it must also be authorized by the court in a competent
guardianship proceeding. After the denial, Mrs. Nario decided to surrender her policy to Philamlife and
demanded its cash value of then amounting to P520. Philamlife also denied the surrender of the policy,
on the same ground, hence, Nario brought suit. Philamlife claims that under Articles 320 and 326 of the
Civil Code, mere written consent given by the father-guardian, for and in behalf of the minor son, without
any court authority, was insufficient, inasmuch as the policy loan application and the surrender of the
policy involved acts of disposition and alienation of the property rights of the minor, and said acts are not
within the powers of the legal administrator. The lower court agreed with Philamlife and dismissed
petitioner’s claim. It held that under the policy, the minor son, as one of the designated irrevocable
beneficiaries, "acquired a vested right to all benefits accruing to the policy, including that of obtaining a
policy loan to the extent stated in the schedule of values attached to the policy. On appeal to the SC,
petitioner averred that the minor's interest amounted to only one-half of the policy's cash surrender value
of P520; that payment of the ward's debts is within the powers of the guardian, where no realty is involved
(Rule 96, Sec. 2 of the Revised Rules of Court); hence, father may validly agree to the proposed
transaction on behalf of the minor without need of court authority.
ISSUE: Can an insurer refuse to grant the loan application (on a cash surrender value and not full face
value) and the surrender of the policy claimed by a father-guardian in behalf of his minor son when it is
without court authority?