Makati Tuscany Condominium Corporation vs Court of Appeals

Makati Tuscany Condominium Corporation vs Court of Appeals, American Home Assurance Co.

Facts: Sometime in 19!, respondent American Home Assurance Co. "AHAC# represented $y American %nternational &nder'riters %nc. "()ils.# issued in favor of petitioner an insurance policy coverin* t)e latter+s $uildin* and premises from 1 Marc) 19!-1 Marc) 19 'it) a total premium of (/00,1.. %t 'as paid on installments from Marc) 19!-2ovem$er 19! ')ic) AHAC accepted. %t 'as rene'ed on Fe$ruary 19 for t)e period of Marc) 19-Marc) 19/ and t)e premium of t)e same amount 'as paid in installments a*ain ')ic) AHAC accepted. 3n 4anuary 19/, it 'as a*ain rene'ed for t)e period of Marc) 19/-Marc) 19. Here, petitioner only made ! installment payments 5 6rst one for (!, and t)e second one for (1,. After t)at, petitioner refused to pay t)e $alance of t)e premium. AHAC 6led an action to recover t)e unpaid $alance of (1/,1.. (etitioner admitted t)at t)ere 'as an e7istin* insurance policy and reasoned out t)at )e discontinued t)e payment of premiums $ecause t)e policy didn+t contain a credit clause in its favor. %t furt)er claimed t)at t)e policy 'as never $indin* and valid and no risk attac)ed to t)e policy. %t furt)er sou*)t )e refund of all t)e premium payments )e made from 19!-19.  T)e trial trial court dismissed dismissed t)e complaint complaint and and stated t)at Makati Makati Tuscany Condo Condo Corp.+s Corp.+s premium premium payments cannot cannot $e refunded $ecause t)ere 'as a risk attac)ed under t)e policies8 and in vie' of t)e reservation in t)e receipts $y AHAC, AHAC )as no ri*)t to demand payment and Makati Tuscany Condo Corp is usti6ed in not payin* it. ot) appealed and Makati Tuscany Condo Corp 'as ordered to pay t)e $alance of t)e premiums due on t)e e7istin* policy 'it) le*al interest . (etitioner no' asserts t)at its payment $y installment of t)e premium invalidated insurance policies from 19!19/ $ecause of Sec. ;; of t)e %nsurance Code ')ic) provides: Sec. ;;. An insurer is entitled to t)e payment of t)e premium as soon as t)e t)in* is e7posed to t)e peril insured a*ainst. 2ot'it)standin* any a*reement to t)e contrary, no policy or contract of insurance issued $y an insurance company is valid and $indin* unless and until t)e premium t)ereof )as $een paid, e7cept in t)e case of a life or an industrial life policy ')enever t)e *race period provision applies.

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