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Unformatted text preview: ceipt and take delivery of any insurance proceeds from
Insular Life arising out of the death of their insured/seaman son, is not convincingly refuted. xxx
CA: The decision was modified by eliminating the award granted to Dina Ayo and Lucia Lontok. It ruled that
the powers of attorney relied upon by Insular Life were sufficient to authorize Capt. Nuval to receive the
proceeds of the insurance pertaining to the beneficiaries.
Issue: Whether Insular Life should pay the claimants their claims despite the fact that Capt. Nuval already
claimed said proceeds.
Held: Yes. PMSI, through its President and General Manager, Capt. Nuval, acted as the agent of Insular
Life. The latter is thus bound by the misconduct of its agent.
We agree with the Insurance Commission that the special powers of attorney "do not contain in unequivocal
and clear terms authority to Capt. Nuval to obtain, receive, receipt from respondent company insurance
proceeds arising from the death of the seamaninsured. On the contrary, the said powers of attorney are
couched in terms which could easily arouse suspicion of an ordinary man." The holding of the public
respondent to the contrary is principally premised on its opinion that: [t]here is nothing in the law which
mandates a specific or special power of attorney to be executed to collect insurance proceeds. Such
authority is not included in the enumeration of art. 1878 of the New Civil Code. Neither do we perceive
collection of insurance claims as an act of strict dominion as to require a special power of attorney.
The execution by the principals of special powers of attorney, which clearly appeared to be in prepared
forms and only had to be filled up with their names, residences, dates of execution, dates of
acknowledgment and others, excludes any intent to grant a general power of attorney or to constitute a
universal agency. Being special powers of attorney, they must be strictly construed. Insular Life knew that a
power of attorney in favor of Capt. Nuval for the collection and receipt of such proceeds was a dev...
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- Fall '14