Laws Applicable: Sec. 189 of the Insurance Act (old law)
FACTS:
- Rodolfo S. Aisporna was duly licensed by Insurance Commission as agent to Perla Compania de Seguros, with license to expire on 30 June, 1970
- Eugenio S. Isidro was issued a Personal Accident Policy by Perla thru its author representative, Rodolfo for a period of 12 months with beneficiary as Ana M. Isidro for P5,000
- Personal Accident Policy insured died by violence during lifetime of policy
- Fiscal filed against Mapalad Aisporna, wife of Rodolfo with violation of Sec. 189 of Insurance Law for having, wilfully, unlawfully, and feloniously acted, "as agent in the solicitation for insurance by soliciting the application of Eugenio S. Isidro for and in behalf of Perla Compaña de Seguros, ... without said accused having first secured a certificate of authority to act as such agent from the office of the Insurance Commission, Republic of the Philippines
- Defense: she naturally helped him in his work, as clerk, and that policy was merely a renewal and was issued because Isidro had called by telephone to renew, and at that time, her husband, Rodolfo, was absent and so she left a note on top of her husband's desk to renew
- RTC and CA: guilty as charged
ISSUE: W/N the
HELD: NO. Reversed
- Section 189 of the Insurance Act
Insurance Act
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Section 189
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No insurance company doing business within the Philippine Islands, nor any agent thereof, shall pay any commission or other compensation to any person for services in obtaining new insurance, unless such person shall have first procured from the Insurance Commissioner a certificate of authority to act as an agent of such company as hereinafter provided. No person shall act as agent, sub-agent, or broker in the solicitation of procurement of applications for insurance, or receive for services in obtaining new insurance, any commission or other compensation from any insurance company doing business in the Philippine Islands, or agent thereof, without first procuring a certificate of authority so to act from the Insurance Commissioner, which must be renewed annually on the first day of January, or within six months thereafter. Such certificate shall be issued by the Insurance Commissioner only upon the written application of persons desiring such authority, such application being approved and countersigned by the company such person desires to represent, and shall be upon a form approved by the Insurance Commissioner, giving such information as he may require. The Insurance Commissioner shall have the right to refuse to issue or renew and to revoke any such certificate in his discretion. No such certificate shall be valid, however, in any event after the first day of July of the year following the issuing of such certificate. Renewal certificates may be issued upon the application of the company.
Any person who for compensation solicits or obtains insurance on behalf of any insurance company, or transmits for a person other than himself an application for a policy of insurance to or from such company or offers or assumes to act in the negotiating of such insurance, shall be an insurance agent within the intent of this section, and shall thereby become liable to all the duties, requirements, liabilities, and penalties to which an agent of such company is subject.
Any person or company violating the provisions of this section shall be fined in the sum of five hundred pesos. On the conviction of any person acting as agent, sub-agent, or broker, of the commission of any offense connected with the business of insurance, the Insurance Commissioner shall immediately revoke the certificate of authority issued to him and no such certificate shall thereafter be issued to such convicted person.
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- careful perusal of the provision shows
- first paragraph - prohibits a person from acting as agent, sub-agent or broker in the solicitation or procurement of applications for insurance without first procuring a certificate of authority so to act from the Insurance Commissioner (no necessity that a person solicits an insurance for compensation in order to be called an insurance agent)
- second paragraph - defines who is an insurance agent within the intent of this section (a person is an insurance agent if he solicits and obtains an insurance for compensation)
- third paragraph - prescribes the penalty to be imposed for its violation
- The appellate court has established ultimately that she did not receive any compensation for the issuance of the insurance policy of Eugenio Isidro.
- It must be noted that the information, in the case at bar, does not allege that the negotiation of an insurance contracts by the accused with Eugenio Isidro was one for compensation.
- This allegation is essential, and having been omitted, a conviction of the accused could not be sustained.
- It is well-settled in Our jurisprudence that to warrant conviction, every element of the crime must be alleged and proved.
