Moral Rights

In addition to his economic rights or a grant of an assignment with respect to such right, the author of a work also has the following moral rights:[1]

  • To require that the authorship of the works be attributed to him, in particular, the right that his name, as far as practicable, be indicated in a prominent way on the copies, and in connection with the public use of his work;[2]
  • To make any alterations of his work prior to, or to withhold it from publication;[3]

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Loss in Insurance and Notice of Loss

Except as otherwise provided in the case of life insurance, a stipulation prohibiting the transfer of the claim of the insured against the insurer after the loss has happened is void if such conveyance was made before the said loss.[1]

Insurer liable for a loss of which a peril insured was proximate cause

Unless otherwise stipulated in the policy, the insurer is liable for a loss which a peril insured against was the proximate cause even if the peril not contemplated by the contract may have been the remote cause of the loss.[2] Conversely, the insurer is not liable for a loss which the peril insured against only a remote cause.[3]

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Deposit and Notice

Within three weeks after the first public dissemination of performance by authority of the copyright owner of works subject of copyright protection (literary, artistic, and derivative works), they are to be registered and deposited with the National Library and Supreme Court Library for the purpose of completing the records therein.[1] The registration and deposit is to be done by personal delivery or by registered mail two complete copies or reproductions of the work in such form as the directors of said libraries may prescribe.[2] Only the above mentioned classes of work are to be accepted for deposit by the said libraries.[3]

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Premium in Insurance

The insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against.[1]

Payment of premium required for validity of contract of insurance; Exceptions

Notwithstanding any agreement to the contrary, a policy or contract of insurance is valid and binding only if the premium thereof has been paid except:[2]

  1. In the case of a life or an industrial life policy whenever the grace period provision applies;[3] or
  2. Whenever under the broker and agency agreements with duly licensed intermediaries, a 90-day credit extension is given.[4]

UCPB General Insurance v. Masagana Telemart, Inc.
G.R. No. 137172, 15 June 1999

Masagana obtained 5 insurance policies over some goods from UCPB. The latter decided not to renew the policies. After the period of coverage expired, the goods were lost to a fire. A month after, Masagana paid the renewal thru checks. A day after, UCPB General Insurance returned the checks. Consequently, Masagana Telemart filed this Complaint to recover at least Php18.6 Million representing the face value of the policies.

HELD: UCPB was not liable since the policy was not renewed. For a non-life insurance policy to be valid, the premium must be paid. In the case at bar, the premium was not paid. Consequently, the policy had lapsed.

UCPB General Insurance v. Masagana Telemart, Inc.
G.R. No. 137172, 04 April 2001 (En Banc)

HELD: On motion for reconsideration, UCPB was held liable. UCPB was estopped since it has been its practice to grant and extend the insurance to Masagana despite failing to pay the renewal.

(Note: Because of this case, there are now five exceptions to the premium requirement in Sec. 77: (1) life and industrial life policy whenever the grace period applies; (2) acknowledgment of receipt; (3) if parties agreed to payment in installments and partial payment has been paid; (4) if a credit extension has been granted; and (5) estoppel.)

DISSENT: (J. Vitug) An essential element of an insurance is its synallagmatic nature, a highly reciprocal contract where rights and obligations correspond. There being no premium paid, no policy is valid and binding.

DISSENT: (J. Pardo) The purported credit was a mere verbal agreement, hence it cannot amend the insurance policy. In the absence of definite agreement of grant of credit and even partial payment of premium, the renewal never acquired the force of law.

Insurance premiums allowed to be paid through salary deductions

Government and GOCC employees are allowed to pay their insurance premiums and loan obligations through salary deduction, so long as the treasurer, cashier, paymaster or official of the entity employing the government employee is authorized, notwithstanding the provisions of any existing law, rules and regulations to the contrary, to make deductions from the salary, wage or income of the latter pursuant to the agreement between the insurer and the government employee and to remit such deductions to the insurer concerned, and collect such reasonable fee for its services.[5]

Acknowledgment in policy of receipt of premium conclusive evidence of its payment

An acknowledgment in a policy or contract of insurance of the receipt of premium is conclusive evidence of its payment insofar as to make the policy binding despite any contrary stipulation therein.[6]

When insured is entitled to return of premium

Except if the policy is annulled, rescinded or if a claim is denied by reason of fraud,[7] an insured is entitled to a return of premium as follows:[8]

  1. To the whole premium if no part of his interest in the thing insured be exposed to any of the perils insured against;[9]
  2. Where the insurance is made for a definite period of time and the insured surrenders his policy, to such portion of the premium corresponding the unexpired time, at a pro rata rate, unless a short period rate has been agreed upon and appears on the face of the policy, after deducting from the whole premium any claim for loss or damage under the policy which has previously accrued: Provided, That no holder of a life insurance policy may avail himself of the privileges of this paragraph without sufficient cause as otherwise provided by law;[10]
  3. When the contract is voidable, and subsequently annulled under the provisions of the Civil Code;[11]
  4. On account of the fraud or misrepresentation of the insurer, or of his agent, or on account of facts, or the existence of which the insured was ignorant of without his fault;[12] or
  5. When by any default of the insured other than actual fraud, the insurer never incurred any liability under the policy.[13]

Insurer not liable for return of premiums if insurer already exposed of risk despite short period

The insurer is not liable for the return of premiums if a peril insured against has existed and the insurer has been liable for such risk regardless if such has been only for a short period of time insofar as that particular risk is concerned.[14]

Insured entitled to ratable return of premium in case of over insurance; Except life insurance

In case of an over insurance by several insurers other than life, the insured is entitled to a ratable return of the premium, proportioned to the amount by which the aggregate sum insured in all the policies exceeds the insurable value of the thing at risk.[15]

Verendia v. Court of Appeals
G.R. No. 75605, 22 January 1993

Verendia insured his residential building with Fidelity. When fire gutted the building, Fortune refused to pay claiming that Verendia was guilty of over-insurance (property is worth Php40,300 but insured for Php900,000) and malicious misrepresentation pointing to a different person who was not the actual lessee.

HELD: Fidelity was not liable. Verendia used a false lease contract to support his claim under the fire policy. Hence, the terms of he policy should overinsurance be strictly construed against the insured. Verendia reprehensibly disregarded that insurance contracts are uberrimae fidae and demand the most abundant good faith.

Insurers allowed to contract and accept payments in addition to regular premium

For the purpose of paying future premiums on the policy or to increase the benefits thereof, insurers are allowed to contract and accept payments in addition to the regular premium.[16]



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[1] Ibid. Section 77.

[2] Ibid. Section 77.

[3] Ibid.

[4] Ibid. “No credit extension to a duly licensed intermediary should exceed ninety (90) days from date of issuance of the policy” (Ibid.).

[5] INSURANCE CODE, as amended. Section 78.

[6] Ibid. Section 79.

[7] Ibid. Paragraph 2, Section 82.

[8] Ibid. Section 80.

[9] Ibid. Section 80 (a).

[10] Ibid. Section 80 (b).

[11] Ibid. Paragraph 1, Section 82.

[12] Ibid. Paragraph 1, Section 82.

[13] Ibid.

[14] INSURANCE CODE, as amended. Section 81.

[15] Ibid. Section 83.

[16] Ibid. Section 84.

[17] Ibid. Section 85. Conversely, such stipulation is valid if the transfer is made after the loss.

[18] Ibid. Section 86.

[19] Ibid.

[20] INSURANCE CODE, as amended. Section 87.

[21] Ibid. Section 88.

[22] Ibid. Section 89.

Limitations on Copyright

The following acts do not constitute copyright infringement:[1]

  1. The recitation or performance of a work, once it has been lawfully made accessible to the public, if done privately and free of charge or if made strictly for a charitable or religious institution or society;[2]
  2. The making of quotations from a published work if they are compatible with fair use and only to the extent justified for the purpose, including quotations from newspaper articles and periodicals in the form of press summaries, so long as the source and the name of the author, if appearing on the work, are mentioned;[3]
  3. The reproduction or communication to the public by mass media of articles on current political, social, economic, scientific, or religious topic, lectures, addresses, and other works of the same nature, which are delivered in public if such use is for information purposes and has not been expressly reserved, so long as the source is clearly indicated;[4]

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Warranties in Insurance

A warranty is either express or implied.[1] It may relate to the past, the present, the future, or to any or all of these.[2] To create a warranty, there is no particular form of words that are necessary to be used.[3]

An express warranty is a statement in a policy “of a matter relating to the person or thing insured, or to the risk, as fact.”[4] For instance, a statement in a policy that imparts what is intended to do or not to do a thing which materially affects the risk is a warranty that such act or omission is to take place.[5]

Without prejudice to those required to be stated in the policy, every express warranty, which was made at/before the execution of a policy, is required to be contained in the policy itself, or in another instrument signed by the insured and referred to in the policy as making a part of it.[6]

The omission to fulfill the warranty relating to the future before the time arrives for the performance of such warranty does not avoid the policy in these cases: (a) when loss insured against happens, or (b) performance becomes unlawful at the place of the contract, or impossible.[7]

Rescission in case of material warranty

Either party is entitled to rescission in case the other violates a material warranty or other material provision of a policy.[8]

The insurer may declare in the policy that a violation of specified provisions thereof results in the contract being void; otherwise, the breach of an immaterial provision does not nullify the policy.[9]

Breach of warranty without fraud

The breach of warranty without fraud results in the following:

  1. It merely exonerates an insurer from the time that it occurs; or
  2. Where it is broken in its inception, prevents the policy from attaching to the risk.[10]


– – –

[1] Ibid. Section 67.

[2] Ibid. Section 68.

[3] Ibid. Section 69.

[4] Ibid. Section 71.

[5] Ibid. Section 72.

[6] Ibid. Section 70.

[7] Ibid. Section 73.

[8] Ibid. Section 74.

[9] Ibid. Section 75.

[10] Ibid. Section 76.

Special limitation: Fair use of a copyrighted work

The fair use of a copyrighted work for criticism, comment, news reporting, teaching, including multiple copies for classroom use, scholarship, research, and similar purposes is not an infringement of copyright.[1]

Factors to determine fair use

In determining whether the use made of a work in any particular case is fair use, the factors to be considered include:[2]

  1. The purpose and character of the use, including whether such use is of a commercial nature or is for non-profit educational purposes;[3]
  2. The nature of the copyrighted work;[4]
  3. The amount and substantiality of the portion used in relation to the copyrighted work as a whole;[5] and
  4. The effect of the use upon the potential market for or value of the copyrighted work.[6]

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