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Title: SUNLIFE ASSURANCE COMPANY OF CANADA vs. The Hon. COURT OF
APPEALS and So!ses ROLANDO and "ERNARDA "ACANI
Toi#: Con#eal$ent % &aive' o( 'i)ht to in(o'$ation *Se# ++ IC,
Fa#ts:
-. Ro.e't /ohn ". "a#ani 'o#!'ed a li(e ins!'an#e #ont'a#t (o' hi$sel( ('o$
S!nli(e.
a. He 0as iss!ed a oli#1 (o' P-223222.223 0ith do!.le inde$nit1 in #ase
o( a##idental death.
.. The desi)nated .ene(i#ia'1 0as his $othe'3 "e'na'da "a#ani.
4. The ins!'ed died in a lane #'ash.
+. "e'na'da (iled a #lai$ 0ith S!nli(e3 see5in) the .ene(its o( the ins!'an#e
oli#1 ta5en .1 he' son.
6. S!nli(e #ond!#ted an investi)ation and its (indin)s 'o$ted it to 'e7e#t the
#lai$.
8. S!nli(e in(o'$ed "a#ani that the ins!'ed did not dis#lose $ate'ial (a#ts
'elevant to the iss!an#e o( the oli#13 th!s 'ende'in) the #ont'a#t o( ins!'an#e
voida.le.
a. A #he#5 'e'esentin) the total 'e$i!$s aid in the a$o!nt o(
P-23-94.22 0as atta#hed to said lette'.
:. S!nli(e #lai$ed that the ins!'ed )ave (alse state$ents in his ali#ation.
a. The de#eased #lai$ed that he #ons!lted a D'. Ra1$!ndo o( the
Chinese ;ene'al Hosital (o' #o!)h and (l! #o$li#ations.
.. The othe' <!estions *li5e i( he has eve' #ons!lted do#to's3 !nde'0ent
EC;3 =>'a1s3 et#, 0e'e ans0e'ed in the ne)ative.
9. S!nli(e dis#ove'ed that 4 0ee5s 'io' to "a#ani?s ali#ation (o' ins!'an#e3 he
0as e@a$ined and #on(ined at the L!n) Cente' o( the Philiines3 0he'e he
0as dia)nosed (o' 'enal (ail!'e.
a. D!'in) his #on(ine$ent3 the de#eased 0as s!.7e#ted to !'inal1sis
tests.
A. "e'na'da and he' h!s.and (iled an a#tion (o' se#i(i# e'(o'$an#e a)ainst
S!nli(e 0ith the RTC.
B. RTC '!lin):
a. in (avo' o( the so!ses and o'de'ed S!nli(e to a1 P-223222.22.
.. #on#l!ded that the (a#ts #on#ealed .1 the ins!'ed 0e'e $ade in )ood
(aith and !nde' a .elie( that the1 need not .e dis#losed. The #o!'t also
held that the $edial histo'1 0as i''elevant .e#a!se it 0asn?t $edi#al
ins!'an#e.
-2. CA '!lin): a((i'$ed the de#ision o( the TC
a. S!nli(e #annot avoid its o.li)ation .1 #lai$in) #on#eal$ent .e#a!se
the #a!se o( death 0as !n'elated to the (a#ts #on#ealed .1 the
ins!'ed.
.. S!nli(e?s $otion (o' 'e#onside'ation 0as denied.
--. Hen#e this etition
Iss!e:
-. &CN the ins!'ed 0as )!ilt1 o( $is'e'esentation 0hi#h $ade the #ont'a#t
void.
Held:
-. Yes
a. Se#tion 4: o( The Ins!'an#e Code: 'e<!i'ed a a't1 to a #ont'a#t o( ins!'an#e
to #o$$!ni#ate to the othe'3 in )ood (aith3 all (a#ts 0ithin his 5no0led)e 0hi#h a'e
$ate'ial to the #ont'a#t and as to 0hi#h he $a5es no 0a''ant13 and 0hi#h the othe'
has no $eans o( as#e'tainin).
.. Con#eal$ent: DA ne)le#t to #o$$!ni#ate that 0hi#h a a't1 5no0s
and o!)ht to #o$$!ni#ate3 is #alled #on#eal$ent.E
#. Mate'ialit1: dete'$ined not .1 the event3 .!t solel1 .1 the 'o.a.le
and 'easona.le in(l!en#e o( the (a#ts !on the a't1 to 0ho$
#o$$!ni#ation is d!e3 in (o'$in) his esti$ate o( the disadvanta)es o(
the 'oosed #ont'a#t o' in $a5in) his in<!i'ies.
d. He'e3 the te'$s o( the #ont'a#t a'e #lea'.
i. The ins!'ed is se#i(i#all1 'e<!i'ed to dis#lose to the ins!'e'
$atte's 'elatin) to his health.
ii. The in(o'$ation 0hi#h the ins!'ed (ailed to dis#lose 0e'e
$ate'ial and 'elevant to the a'oval and iss!an#e o( the
ins!'an#e oli#1.
iii. The $atte's #on#ealed 0o!ld have de(initel1 a((e#ted S!nli(e?s
a#tion on his ali#ation
*a, eithe' .1 a'ovin) it 0ith the #o''esondin)
ad7!st$ent (o' a hi)he' 'e$i!$ o' 'e7e#tin) the sa$e.
*., a dis#los!'e $a1 have 0a''anted a $edi#al
e@a$ination o( the ins!'ed .1 etitione' in o'de' (o' it to
'easona.l1 assess the 'is5 involved in a##etin) the
ali#ation.
e. Fda. de Canilan) v. Co!'t o( Aeals: $ate'ialit1 o( the in(o'$ation 0ithheld
does not deend on the state o( $ind o( the ins!'ed. Neithe' does it deend on the
a#t!al o' h1si#al events 0hi#h ens!e.
(. D;ood (aithG is no de(ense in #on#eal$ent.
i. The ins!'edHs (ail!'e to dis#lose the (a#t that he 0as
hositaliIed 'aises )'ave do!.ts a.o!t his eli)i.ilit1.
ii. S!#h #on#eal$ent 0as deli.e'ate on his a't.
). The a')!$ent3 that etitione'Hs 0aive' o( the $edi#al e@a$ination o(
the ins!'ed de.!n5s the $ate'ialit1 o( the (a#ts #on#ealed3 is
!ntena.le.
i. Sat!'nino v. Philiine A$e'i#an Li(e Ins!'an#e G . . . the 0aive' o(
a $edi#al e@a$ination Jin a non>$edi#al ins!'an#e #ont'a#tK 'ende's even
$o'e $ate'ial the in(o'$ation 'e<!i'ed o( the ali#ant #on#e'nin) 'evio!s
#ondition o( health and diseases s!((e'ed3 (o' s!#h in(o'$ation ne#essa'il1
#onstit!tes an i$o'tant (a#to' 0hi#h the ins!'e' ta5es into #onside'ation in
de#idin) 0hethe' to iss!e the oli#1 o' not . . . G
h. Anent the (indin) that the (a#ts #on#ealed had no .ea'in) to the #a!se
o( death o( the ins!'ed3 it is 0ell settled that the ins!'ed need not die
o( the disease he had (ailed to dis#lose to the ins!'e'.
i. It is s!((i#ient that his non>dis#los!'e $isled the ins!'e' in
(o'$in) his esti$ates o( the 'is5s o( the 'oosed ins!'an#e
oli#1 o' in $a5in) in<!i'ies as held in Henson.