G.R. No. L-22796 June 26, 1967
Lessons Applicable: Irrevocable Designation (Insurance)
FACTS:
- June 12, 1959: Philippine American Life Insurance Co. issued a life insurance to Mrs. Alejandra Santos-Mario a life insurance policy under a 20-year endowment plan, with a face value of P5,000 designating her husband Delfin Nario and their unemancipation son Ernesto Nario, as her irrevocable beneficiaries
- June, 1963: She submitted her loan application to the life insurance co. with signature of her husband in two capacities:
- irrevocable beneficiaries
- father-guardian of minor irrevocable beneficiary Ernesto
- Insurance Co. denied asking that the legal guardian must be authorized by the court in a competent guardianship proceeding
- Upon denial, she opted to surrender her insurance policy in exchange of its cash surrender value of P520 but it was also denied on the same ground
- September 10, 1963: Mrs. Alejandra Santos-Nario and her husband, Delfin Nario, brought suit against the Philippine American Life Insurance Co
- RTC: favored the insurance company
- CA: vested interest or right of the beneficiaries in the policy should be measured on its full face value and not on its cash surrender value, for in case of death of the insured, said beneficiaries are paid on the basis of its face value and in case the insured should discontinue paying premiums, the beneficiaries may continue paying it and are entitled to automatic extended term or paid-up insurance options, etc. and that said vested right under the policy cannot be divisible at any given time. policy loan and surrender of policy constitute acts of disposition or alienation of property rights and not merely of management or administration because they involve the incurring or termination of contractual obligations
ISSUE: W/N parents as guardians can enter into transactions for the benefit of minor irrevocable beneficiaries.
HELD: NO. Affirmed.
- SEC. 7. Parents as guardians. — When the property of the child under parental authority is worth two thousand pesos or less, the father or the mother, without the necessity of court appointment, shall be his legal guardian. When the property of the child is worth more than two thousand pesos, the father or the mother shall be considered guardian of the child's property, with the duties and obligations of guardians under these rules, and shall file the petition required by Section 2 hereof. For good reasons the court may, however, appoint another suitable person.
- even if worth less than P2,000 parent's authority over the estate of the ward as a legal-guardian would not extend to acts of encumbrance or disposition, as distinguished from acts of management or administration.
