3rd Exam Insurance

8/13/2019 3rd Exam Insurance

1/38

Chapter IICLASSES OF INSURANCE

Title IMARINE INSURANCE

Sub-Title 1- ADEFINITION

Sec. 99. Marine Inurance inclu!e"

#1$ Inurance a%aint l& &' &r !a(a%e t&"

#a$ )eel* cra't* aircra't* +ehicle* %&&!* 'rei%ht*car%&e* (erchan!ie* e''ect* !ibure(ent*pr&'it* (&ne,* ecuritie* ch&e in acti&n*e+i!ence &' !ebt* +aluable paper* b&tt&(r,*an! rep&n!entia interet an! all &ther in! &'pr&pert, an! interet therein* in repect t&*appertainin% t& &r in c&nnecti&n ith an, an! allri &r peril &' na+i%ati&n* tranit &r tranp&rtati&n*&r hile bein% ae(ble!* pace!* crate!* bale!*c&(pree! &r i(ilarl, prepare! '&r hip(ent &r

hile aaitin% hip(ent* &r !urin% an, !ela,*t&ra%e* tranhip(ent* &r rehip(ent inci!enttheret&* inclu!in% ar ri* (arine buil!er/ ri*an! all per&nal pr&pert, 'l&ater ri0

#b$ er&n &r pr&pert, in c&nnecti&n ith &rappertainin% t& a (arine* inlan! (arine* tranit &rtranp&rtati&n inurance* inclu!in% liabilit, '&r l&&' &r !a(a%e ariin% &ut &' &r in c&nnecti&n ith thec&ntructi&n* repair* &perati&n* (aintenance &r ue&' the ub2ect (atter &' uch inurance #but n&tinclu!in% li'e inurance &r uret, b&n! n&rinurance a%aint l& b, rea&n &' b&!il, in2ur, t&an, per&n ariin% &ut &' &nerhip* (aintenance*&r ue &' aut&(&bile$0

#c$ reci&u t&ne* 2eel* 2eelr,* preci&u(etal* hether in c&ure &' tranp&rtati&n &r&therie0

#!$ 3ri!%e* tunnel an! &ther intru(entalitie &'tranp&rtati&n an! c&((unicati&n #e4clu!in%buil!in%* their 'urniture an! 'urnihin%* 'i4e!c&ntent an! upplie hel! in t&ra%e$0 pier*

har+e* !&c an! lip* an! &ther ai! t&na+i%ati&n an! tranp&rtati&n* inclu!in% !r, !&can! (arine raila,* !a( an! appurtenant'acilitie '&r the c&ntr&l &' atera,.

#5$ "Marine protection and indemnityinsurance,"(eanin% inurance a%aint* &r a%aint le%alliabilit, &' the inure! '&r l&* !a(a%e* &r e4peneinci!ent t& &nerhip* &perati&n* charterin%*(aintenance* ue* repair* &r c&ntructi&n &' an, +eel*cra't &r intru(entalit, in ue &' &cean &r inlan!

atera,* inclu!in% liabilit, &' the inure! '&r per&nalin2ur,* illne &r !eath &r '&r l& &' &r !a(a%e t& thepr&pert, &' an&ther per&n.

Sub-Title 1-3INSURA3LE INTEREST

Sec. 166. The &ner &' a hip ha in all cae an inurableinteret in it* e+en hen it ha been chartere! b, &ne h&c&+enant t& pa, hi( it +alue in cae &' l&" r&+i!e!* That in

thi cae the inurer hall be liable '&r &nl, that part &' the l&hich the inure! cann&t rec&+er 'r&( the charterer.

Sec. 161. The inurable interet &' the &ner &' the hiph,p&thecate! b, b&tt&(r, i &nl, the e4ce &' it +alue &+erthe a(&unt ecure! b,b&tt&(r,.

Sec. 165. Frei%hta%e* in the ene &' a p&lic, &' (arineinurance* i%ni'ie all the bene'it !eri+e! b, the &ner* either'r&( the charterin% &' the hip &r it e(pl&,(ent '&r the carria%e&' hi &n %&&! &r th&e &' &ther.

Sec. 167. The &ner &' a hip ha an inurable interet ine4pecte! 'rei%hta%e hich acc&r!in% t& the &r!inar, an!pr&bable c&ure &' thin% he &ul! ha+e earne! but '&r theinter+enti&n &' a peril inure! a%aint &r &ther peril inci!ent t&the +&,a%e.

Sec. 168. The interet (enti&ne! in the lat ecti&n e4it* incae &' a charter part,* hen the hip ha br&en %r&un! &n thechartere! +&,a%e. I' a price i t& be pai! '&r the carria%e &'%&&! it e4it hen the, are actuall, &n b&ar!* &r there i &(e

c&ntract '&r puttin% the( &n b&ar!* an! b&th hip an! %&&! arerea!, '&r the peci'ie! +&,a%e.

Sec. 16. One h& ha an interet in the thin% 'r&( hichpr&'it are e4pecte! t& pr&cee! ha an inurable interet in thepr&'it.

Sec. 16:. The charterer &' a hip ha an inurable interet in it*t& the e4tent that he i liable t& be !a(ni'ie! b, it l&.

Sub-Title 1-CCONCEALMENT

Sec. 16;. In (arine inurance each part, i b&un! t&c&((unicate* in a!!iti&n t& hat i re


2/38

ti(e* the i(plie! arrant, i n&t c&(plie! ith unle thehip be ea&rth, at the c&((ence(ent &' e+er,+&,a%e it un!ertae !urin% that ti(e0

#b$ ?hen the inurance i up&n the car%& hich* b, theter( &' the p&lic,* !ecripti&n &' the +&,a%e* &retablihe! cut&( &' the tra!e* i t& betranhippe! atan inter(e!iate p&rt* the i(plie! arrant, i n&tc&(plie! ith unle each +eel up&n hich the car%&i hippe!* &rtranhippe!* be ea&rth, at the

c&((ence(ent &' each particular +&,a%e.Sec. 11:. A arrant, &' ea&rthine e4ten! n&t &nl, t& thec&n!iti&n &' the tructure &' the hip itel'* but rear! be increae! b, thi e4teni&n&' liabilit,.

Sec. 178. In a!!iti&n t& the liabilit, (enti&ne! in the lat ecti&n*a (arine inurer i b&un! '&r !a(a%e* e4pene &'!ichar%in%* t&ra%e* rehip(ent* e4tra 'rei%hta%e* an! all &ther

e4pene incurre! in a+in% car%& rehippe! puruant t& thelat ecti&n* up t& the a(&unt inure!.N&thin% in thi &r in the prece!in% ecti&n hall ren!er a (arineinurer liable '&r an, a(&unt in e4ce &' the inure! +alue &r* i'there be n&ne* &' the inurable +alue.

Sec. 17. Up&n an actual t&tal l&* a per&n inure! i entitle!t& pa,(ent ith&ut n&tice &' aban!&n(ent.

Sec. 17:. ?here it ha been a%ree! that an inurance up&n aparticular thin%* &r cla &' thin%* hall be 'ree 'r&( particulara+era%e* a (arine inurer i n&t liable '&r an, particular a+era%el& n&t !epri+in% the inure! &' the p&ei&n* at the p&rt &'!etinati&n* &' the h&le &' uch thin%* &r cla &' thin%* e+enth&u%h it bec&(e entirel, &rthle0 but uch inurer i liable

'&r hi pr&p&rti&n &' all %eneral a+era%e l& aee! up&n thethin% inure!.

Sec. 17;. An inurance c&n'ine! in ter( t& an actual l& !&en&t c&+er a c&ntructi+e t&tal l&* but c&+er an, l&* hichnecearil, reult in !epri+in% the inure! &' the p&ei&n* atthe p&rt &' !etinati&n* &' the entire thin% inure!.

Sub-Title 1-@A3ANDONMENT

Sec. 17=. Aban!&n(ent* in (arine inurance* i the act &' theinure! b, hich* a'ter a c&ntructi+e t&tal l&* he !eclare therelin


3/38

(&re than three-'&urth0

#c$ I' the thin% inure! i a hip* an! the c&nte(plate!+&,a%e cann&t be la'ull, per'&r(e! ith&ut incurrin%either an e4pene t& the inure! &' (&re than three-'&urththe +alue &' the thin% aban!&ne! &r a ri hich a pru!ent(an &ul! n&t tae un!er the circu(tance0 &r

#!$ I' the thin% inure!* bein% car%& &r 'rei%hta%e* an! the+&,a%e cann&t be per'&r(e!* n&r an&ther hip pr&cure! b,the (ater* ithin a rea&nable ti(e an! ith rea&nable

!ili%ence* t& '&rar! the car%&* ith&ut incurrin% the liee4pene &r ri (enti&ne! in the prece!in% ub-para%raph.3ut 'rei%hta%e cann&t in an, cae be aban!&ne! unle thehip i al& aban!&ne!.

Sec. 186. An aban!&n(ent (ut be neither partial n&rc&n!iti&nal.

Sec. 181. An aban!&n(ent (ut be (a!e ithin a rea&nableti(e a'ter receipt &' reliable in'&r(ati&n &' the l&* but herethe in'&r(ati&n i &' a !&ubt'ul character* the inure! i entitle!t& a rea&nable ti(e t& (ae in


4/38

attachin% t& hi p&lic, +alue here thi i le than thec&ntributin% +alue &' the thin% inure!.

Sec. 1:. ?hen a per&n inure! b, a c&ntract &' (arineinurance ha a !e(an! a%aint &ther '&r c&ntributi&n* he (a,clai( the h&le l& 'r&( the inurer* ubr&%atin% hi( t& hi&n ri%ht t& c&ntributi&n. 3ut n& uch clai( can be (a!e up&nthe inurer a'ter the eparati&n &' the interet liable t& thec&ntributi&n* n&r hen the inure!* ha+in% the ri%ht an!&pp&rtunit, t& en'&rce the c&ntributi&n 'r&( &ther* ha

ne%lecte! &r ai+e! the e4ercie &' that ri%ht.Sec. 1::. In the cae &' a partial l& &' hip &r it e


5/38

%i+in% &' a b&n!* here the interet &' the (in&r in the particularact in+&l+e! !&e n&t e4cee! tent, th&uan! pe&. Such ri%ht(a, inclu!e* but hall n&t be li(ite! t&* &btainin% a p&lic, l&an*urren!erin% the p&lic,* recei+in% the pr&cee! &' the p&lic,*an! %i+in% the (in&r/ c&nent t& an, tranacti&n &n the p&lic,.

Sec. 1=6-A. The inurer in a li'e inurance c&ntract hall beliable in cae &' uici!e &nl, hen it i c&((itte! a'ter thep&lic, ha been in '&rce '&r a peri&! &' t& ,ear 'r&( the !ate&' it iue &r &' it lat reintate(ent* unle the p&lic,

pr&+i!e a h&rter peri&!" Provided, however* That uici!ec&((itte! in the tate &' inanit, hall be c&(penablere%ar!le &' the !ate &' c&((ii&n. #A a(en!e!b, 3ataan% a(bana 3l%. =;8$.

Sec. 1=1. A p&lic, &' inurance up&n li'e &r health (a, pa b,tran'er* ill &r uccei&n t& an, per&n* hether he ha aninurable interet &r n&t* an! uch per&n (a, rec&+er up&n it

hate+er the inure! (i%ht ha+e rec&+ere!.

Sec. 1=5. N&tice t& an inurer &' a tran'er &r bee! b, the la &' the hilippine t& en%a%ein the buine &' inurance peci'ie! in the certi'icate.

Sec. 1=;. N& inurance c&(pan, hall tranact an, inurancebuine in the hilippine until a'ter it hall ha+e &btaine! acerti'icate &' auth&rit, '&r that purp&e 'r&( the C&((ii&nerup&n applicati&n there'&re an! pa,(ent b, the c&(pan,c&ncerne! &' the 'ee hereina'ter precribe!.

The C&((ii&ner (a, re'ue t& iue a certi'icate &' auth&rit,

t& an, inurance c&(pan, i'* in hi 2u!%(ent* uch re'ual illbet pr&(&te the interet &' the pe&ple &' thi c&untr,. N& uchcerti'icate &' auth&rit, hall be %rante! t& an, uch c&(pan,until the C&((ii&ner hall ha+e ati'ie! hi(el' b, uche4a(inati&n a he (a, (ae an! uch e+i!ence a he (a,ree! t& tranact inthe hilippine the buine &' li'e an! n&n-li'e inurancec&ncurrentl, unle peci'icall, auth&ri>e! t& !&&" Provided* That the ter( "life" an! "non-life"inurance hallbe !ee(e! t& inclu!e health* acci!ent an! !iabilit, inurance.

N& inurance c&(pan, hall ha+e e


6/38

t&c &' at leat three (illi&n pe& b, Dece(ber thirt,-&ne*nineteen hun!re! e+ent,-ei%ht* '&ur (illi&n pe& b,Dece(ber thirt,-&ne* nineteen hun!re! e+ent,-nine an! 'i+e(illi&n pe& b, Dece(ber thirt,-&ne* nineteen hun!re!ei%ht,"Provided, further,that the Secretar, &' Finance (a,*up&n rec&((en!ati&n &' the Inurance C&((ii&ner* increaeuch (ini(u( pai!-up capital t&c ree! a a (utual c&(pan,* in lieu &' uch capital t&c*

it (ut ha+e a+ailable cah aet &' at leat 'i+e (illi&n pe&ab&+e all liabilitie '&r l&e rep&rte!* e4pene* ta4e* le%alreer+e* an! reinurance &' all &uttan!in% ri* an! thec&ntribute! urplu 'un! eati&nan! tran'&r( itel' int& a (utual inurance c&(pan,. #Aa(en!e! b, rei!ential Decree N&. 18$.

Sec. 1=9. E+er, c&(pan, (ut* be'&re en%a%in% in thebuine &' inurance in the hilippine* 'ile ith theC&((ii&ner the '&ll&in%"

#a$ A certi'ie! c&p, &' the lat annual tate(ent &r a+eri'ie! 'inancial tate(ent e4hibitin% the c&n!iti&n an!a''air &' uch c&(pan,0

#b$ I' inc&rp&rate! un!er the la &' the hilippine* ac&p, &' the article &' inc&rp&rati&n an! b,-la* an! an,a(en!(ent t& either* certi'ie! b, the Securitie an!E4chan%e C&((ii&n t& be a c&p, &' that hich i 'ile!in it O''ice0

#c$ I' inc&rp&rate! un!er an, la &ther than th&e &' thehilippine* a certi'icate 'r&( the Securitie an!E4chan%e C&((ii&n h&in% that it i !ul, re%itere!in the (ercantile re%itr, &' that C&((ii&n inacc&r!ance ith the C&rp&rati&n La. A c&p, &' the

article &' inc&rp&rati&n an! b,-la* an! an,a(en!(ent t& either* i' &r%ani>e! &r '&r(e! un!er an,la ree!* ac&p, &' the la* charter &r !ee! &' ettle(ent un!er

hich the !ee! &' &r%ani>ati&n i (a!e* !ul, certi'ie! b,the pr&per cut&!ian there&'* &r pr&+e! b, a''i!a+it t& bea c&p,0 al&* a certi'icate un!er the han! an! eal &' thepr&per &''icer &' uch tate &r c&untr, ha+in% uper+ii&n&' inurance buine therein* i' an, there be* that uchc&rp&rati&n &r c&(pan, i &r%ani>e! un!er the la &'uch tate &r c&untr,* ith the a(&unt &' capital t&c &raet an! le%al reer+e re


7/38

&' the c&(pan, !ep&itin% the a(e* but hall a l&n% a thec&(pan, i &l+ent* per(it the c&(pan, t& c&llect the interet &r!i+i!en! &n the ecuritie & !ep&ite!* an!* 'r&( ti(e t& ti(e*

ith hi aent* t& ith!ra an, &' uch ecuritie* up&n!ep&itin% ith ai! C&((ii&ner &ther lie ecuritie* the(aret +alue &' hich hall be ee! t& tranactbuine in thi c&untr,* the 'ull a(&untthere&'0 &r

#b$ 'r&( an inurer n&t auth&ri>e! in thic&untr,* in an a(&unt n&t e4cee!in% theliabilitie carrie! b, the ce!in% inurer '&ra(&unt ithhel! un!er a reinurance treat,

ith uch unauth&ri>e! inurer a ecurit, '&rthe pa,(ent &' &bli%ati&n thereun!er i' uch'un! are hel! ub2ect t& ith!raal b,* an!un!er the c&ntr&l &'* the ce!in% inurer. TheC&((ii&ner (a, precribe the c&n!iti&n

Ana Rhea Echavez

Insurance Code

7


8/38

un!er hich a ce!in% inurer (a, be all&e!cre!it* a an aet &r a a !e!ucti&n 'r&( l&an! unearne! pre(iu( reer+e* '&rreinurance rec&+erable 'r&( an inurer n&tauth&ri>e! in thi c&untr, but hich preentati'act&r, e+i!ence that it (eet theapplicable tan!ar! &' &l+enc, ree! b, the C&((ii&ner t& be acable an! a+ailable '&rthe pa,(ent &' l&e an! clai( at +alue t& be!eter(ine! b, hi(.

Sec. 19;. In a!!iti&n t& uch aet a the C&((ii&ner (a,'r&( ti(e t& ti(e !eter(ine t& be n&n-a!(itte! aet &'inurance c&(panie !&in% buine in the hilippine* the'&ll&in% aet hall in n& cae be all&e! a a!(itte! aet&' an inurance c&(pan, !&in% buine in the hilippine* inan, !eter(inati&n &' it 'inancial c&n!iti&n"

1. B&&!ill* tra!e na(e* an! &ther lie intan%ible

aet.

5. repai! &r !e'erre! char%e '&r e4pene an!c&((ii&n pai! b, uch inurance c&(pan,.

7. A!+ance t& &''icer #&ther than p&lic, l&an$* hichare n&t a!ee! b, the C&((ii&ner* a ell a a!+ance t&e(pl&,ee* a%ent* an! &ther per&n &n (ere per&nalecurit,.

8. Share &' t&c &' uch inurance c&(pan,* &ne!b, it* &r an, ee! in (&nthl,*


9/38

#c$ 3&n! &r &ther e+i!ence &' !ebt &' the %&+ern(ent-&ne! &r c&ntr&lle! c&rp&rati&n an! entitie* inclu!in%the Central 3an.

#!$ 3&n!* !ebenture &r &ther e+i!ence &'in!ebte!ne &' an, &l+ent c&rp&rati&n &r intituti&ncreate! &r e4itin% un!er the la &' thehilippine" Provided, however,That the iuin%*au(in% &r %uaranteein% entit, &r it pre!ece&rhall n&t ha+e !e'aulte! in the pa,(ent &' interet &n

an, &' it ecuritie an! that !urin% each &' an, threeinclu!in% the lat t& &' the 'i+e 'ical ,ear ne4tprece!in% the !ate &' ac


10/38

Central 3an &' the hilippine" Provided,That uchin+et(ent hall at all ti(e be (aintaine! 'ree 'r&( an, lien &rencu(brance0 an! Provided, further* That uch ecuritie hallbe !ep&ite! ith an! hel! b, the C&((ii&ner '&r the 'aith'ulper'&r(ance b, the !ep&itin% inurer &' all it &bli%ati&n un!erit inurance c&ntract. The pr&+ii&n &' ecti&n &ne hun!re!ninet,-t& hall* & 'ar a practicable* appl, t& the ecuritie!ep&ite! un!er thi ecti&n.

E4cept a &therie pr&+i!e! in thi C&!e* n& 2u!%(ent cre!it&r

&r &ther clai(ant hall ha+e the ri%ht t& le+, up&n an, &' theecuritie &' the inurer hel! &n !ep&it un!er thi ecti&n &rhel! &n !ep&it puruant t& the ree! b, the C&((ii&ner '&r purp&e &' thi

ecti&n" Provided* That #a$ n& (&re than tent, per centu( &'the net &rth &' uch c&(pan, a h&n b, it latet 'inancialtate(ent appr&+e! b, the C&((ii&ner hall be in+ete! inthe l&t an! buil!in% in hich the inurance c&(pan, c&n!uct itbuine an! #b$ the t&tal in+et(ent &' an inurance c&(pan,in an, re%itere! enterprie hall n&t e4cee! tent,percentum &' the net &rth &' ai! inurance c&(pan, a h&n b,it a'&reai! 'inancial tate(ent n&r tent,per centum &' thepai!-up capital &' the re%itere! enterprie e4clu!in% theinten!e! in+et(ent* unle pre+i&ul, auth&ri>e! b, theC&((ii&ner" an!* Provided, further* That uch in+et(ent'ree 'r&( an, lien &r encu(brance* hall be at leat eati&n an! hall be +alue! in acc&r!ance ithpara%raph t&. The C&((ii&ner (a,* i' he 'in! that theinteret &' p&lic, h&l!er & per(it &r ree! t& !& buine in thi c&untr, it &ul! be pru!ent '&ruch inurer t& etablih a pecial reer+e '&r p&ible l&e &r'luctuati&n in the +alue &' it in+et(ent* he (a, re


11/38

recei+e! &n !ip&iti&n &' real pr&pert, &therie hel! hall be+alue! in an a(&unt n&t e4cee!in% ninet, per centu( &' the+alue &' uch real pr&pert, a !eter(ine! b, an appraial (a!eb, an appraier at &r ab&ut the ti(e &' !ip&iti&n &' uch realpr&pert,.

#:$ The t&c &' a ubi!iar, &' an inurer hall be +alue! &n thebai &' the %reater &' #i$ the +alue &' &nl, uch ubi!iar, &' theaet &' uch ubi!iar, a &ul! c&ntitute la'ul in+et(ent'&r the inurer i' ace! t& !&buine in thi c&untr, t& +alue their in+et(ent &r an, cla&r clae there&' a &' an, !ate heret&'&re &r herea'ter inacc&r!ance ith an, applicable +aluati&n &r (eth&!.

Sec. 569. It hall be the !ut, &' the &''icer &' the inurancec&(pan, t& rep&rt ithin the 'irt 'i'teen !a, &' e+er, (&nth alluch in+et(ent a (a, be (a!e b, the( !urin% the

prece!in% (&nth* an! the C&((ii&ner (a,* i' uchin+et(ent &r an, &' the( ee( in2u!ici&u t& hi(* re


12/38

buine in the hilippine in uch a(&unt an! un!er ucharran%e(ent a &ul! be c&nitent ith &un! un!erritin%practice be'&re the, enter int& reinurance arran%e(ent ithunauth&ri>e! '&rei%n inurer.

Sec. 519. An, inurance c&(pan, !&in% buine inthe hilippine !eirin% t& ce!e their e4ce ri t& '&rei%ninurance &r reinurance c&(panie n&t auth&ri>e! t& tranactbuine in the hilippine (a, !& & un!er the '&ll&in%c&n!iti&n"

#1$ E4cept in 'acultati+e reinurance an! e4ce &' l&c&+er* the 'ull a(&unt &' the reer+e 'un! ree! un!er title ten &'

thi chapter t& iue* !eli+er &r ue +ariable c&ntract hallannuall, 'ile ith the C&((ii&ner eparate annual tate(ent&' it eparate +ariable acc&unt. Such tate(ent hall be &n a'&r( precribe! &r appr&+e! b, the C&((ii&ner an! hallinclu!e !etail a t& all &' the inc&(e* !ibure(ent* aetan! liabilit, ite( &' an! a&ciate! ith the ai! eparate+ariable acc&unt. Sai! tate(ent hall be un!er &ath &' t&&''icer &' the c&(pan, an! hall be 'ile! i(ultane&ul, iththe annual tate(ent re


13/38

hall be uch a the pre(iu( &ul! ha+e purchae! atthe c&rrect a%e0

#e$ I' the p&lic, i participatin%* a pr&+ii&n that thec&(pan, hall peri&!icall, acertain an! app&rti&n an,!i+iible urplu accruin% &n the p&lic, un!er c&n!iti&npeci'ie! therein0

#'$ A pr&+ii&n peci',in% the &pti&n t& hich thep&lic,h&l!er i entitle! t& in the e+ent &' !e'ault in apre(iu( pa,(ent a'ter three 'ull annual pre(iu( hall

ha+e been pai!. Such &pti&n hall c&nit &'"

#1$ A cah urren!er +alue pa,able up&nurren!er &' the p&lic, hich hall n&t be lethan the reer+e &n the p&lic,* the bai &'

hich hall be in!icate!* '&r the then currentp&lic, ,ear an! an, !i+i!en! a!!iti&n theret&*re!uce! b, a urren!er char%e hich hall n&tbe (&re than &ne-'i'th &' the entire reer+e &rt& an! &ne-hal' per centu( &' the a(&untinure! an! an, !i+i!en! a!!iti&n theret&0

#5$ One &r (&re pai!-up bene'it &n a plan &r

plan peci'ie! in the p&lic, &' uch +alue a(a, be purchae! b, the cah urren!er+alue0

#%$ A pr&+ii&n that at an,ti(e a'ter a cah urren!er+alue i a+ailable un!er the p&lic, an! hile the p&lic, iin '&rce* the c&(pan, ill a!+ance* &n pr&perai%n(ent &r ple!%e &' the p&lic, an! &n &le ecurit,there&'* a u( e


14/38

inurance bene'it are pa,able* an! the ri%ht et '&rth inpara%raph #h$* #i$ an! #2$ '&ll&in%0

#h$ A pr&+ii&n that i' the inurance* &r an, p&rti&n &' it*&n a per&n c&+ere! un!er the p&lic, ceae becaue &'ter(inati&n &' e(pl&,(ent &r &' (e(berhip in the cla&r clae eli%ible '&r c&+era%e un!er the p&lic,* uchper&n hall be entitle! t& ha+e iue! t& hi( b, theinurer* ith&ut e+i!ence &' inurabilit,* an in!i+i!ualp&lic, &' li'e inurance ith&ut !iabilit, &r &ther

upple(entar, bene'it* pr&+i!e! applicati&n '&r thein!i+i!ual p&lic, an! pa,(ent &' the 'irt pre(iu( t& theinurer hall be (a!e ithin thirt, !a, a'ter uchter(inati&n an! pr&+i!e! 'urther that"

#1$ the in!i+i!ual p&lic, hall be &n an, &ne &'the '&r(* e4cept ter( inurance* thencut&(aril, iue! b, the inurer at the a%ean! '&r an a(&unt n&t in e4ce &' thec&+era%e un!er the %r&up p&lic,0 an!

#5$ the pre(iu( &n the in!i+i!ual p&lic, hallbe at the inurer/ then cut&(ar, rateapplicable t& the '&r( an! a(&unt &' the

in!i+i!ual p&lic,* t& the cla &' ri t& hichuch per&n then bel&n%* an! t& hi a%eattaine! &n the e''ecti+e !ate &' the in!i+i!ualp&lic,.

#i$ A pr&+ii&n that i' the %r&up p&lic, ter(inate &r ia(en!e! & a t& ter(inate the inurance &' an, cla&' inure! per&n* e+er, per&n inure! thereun!er atthe !ate &' uch ter(inati&n h&e inurance ter(inatean! h& ha been & inure! '&r 'i+e ,ear pri&r t& uchter(inati&n !ate hall be entitle! t& ha+e iue! t& hi(b, the inurer an in!i+i!ual p&lic, &' li'e inuranceub2ect t& the a(e li(itati&n a et '&rth in para%raph#h$* e4cept that the %r&up p&lic, (a, pr&+i!e that thea(&unt &' uch in!i+i!ual p&lic, hall n&t e4cee! the(aller &' #a$ the a(&unt &' the per&n/ li'e inurancepr&tecti&n ceain% le the a(&unt &' an, li'e inurance'&r hat he i &r bec&(e eli%ible un!er an, %r&up p&lic,iue! &r reintate! b, the a(e &ran&ther reinurer ithin thirt, !a, a'ter uchter(inati&n* an! #b$ t& th&uan! pe&0

#2$ A pr&+ii&n that i' a per&n inure! un!er the %r&upp&lic, !ie !urin% the thirt,-!a, peri&! ithin hich he

&ul! ha+e been entitle! t& an in!i+i!ual p&lic, iue! t&hi( in acc&r!ance ith #h$ an! #i$ ab&+e an! be'&re uchin!i+i!ual p&lic, hall ha+e bec&(e e''ecti+e* the a(&unt&' li'e inurance hich he &ul! ha+e been entitle! t&ha+e iue! t& hi( a an in!i+i!ual p&lic, hall bepa,able a a clai( un!er the %r&up p&lic, hether &r n&tapplicati&n '&r the in!i+i!ual p&lic, &r the pa,(ent &' the'irt pre(iu( ha been (a!e0

#$ In the cae &' a p&lic, iue! t& a cre!it&r t& inure!ebt&r &' uch cre!it&r* a pr&+ii&n that the inurer ill'urnih t& the p&lic,h&l!er '&r !eli+er, t& each !ebt&rinure! un!er the p&lic, a '&r( hich ill c&ntain atate(ent that the li'e &' the !ebt&r i inure! un!er thep&lic, an! that an, !eath bene'it pai! thereun!er b,rea&n &' hi !eath hall be applie! t& re!uce &r

e4tin%uih in!ebte!ne.The pr&+ii&n &' para%raph #'$ t& #2$ hall n&t appl, t& p&licieiue! t& a cre!it&r t& inure hi !ebt&r. I' a %r&up li'e p&lic, i&n a plan &' inurance &ther than ter(* it hall c&ntain a n&n-'&r'eiture pr&+ii&n &r pr&+ii&n hich in the &pini&n &' theC&((ii&ner i &r are e


15/38

a!!iti&n theret&* i' an,* at the en! &' the lat c&(plete!p&lic, ,ear '&r hich pre(iu( hall ha+e been pai! #thep&lic, t& peci', the (&rtalit, table* rate &' interet an!(eth&! &' +aluati&n a!&pte! t& c&(pute uch reer+e$*e4clui+e &' an, reer+e &n !iabilit, bene'it an!acci!ental !eath bene'it* le an a(&unt n&t t& e4cee!t& an! &ne-hal'per centum &' the (a4i(u( a(&untinure! b, the p&lic, an! !i+i!en! a!!iti&n theret&* i'an,* at the en! &' the lat c&(plete! p&lic, ,ear '&r

hich pre(iu( hall ha+e been pai! #the p&lic, t&peci', the (&rtalit, table* rate &' interet an! (eth&! &'+aluati&n a!&pte! t& c&(pute uch reer+e$* e4clui+e &'an, reer+e &n !iabilit, bene'it an! acci!ental !eathbene'it* le an a(&unt n&t t& e4cee! t& an! &ne-hal'per centu( &' the (a4i(u( a(&unt inure! b, thep&lic, an! !i+i!en! a!!iti&n theret&* i' an,* hen theiue a%e i un!er ten ,ear* an! le an a(&unt n&t t&e4cee! t& an! &ne-hal'per centum&' the currenta(&unt inure! b, the p&lic, an! !i+i!en! a!!iti&ntheret&* i' an,* i' the iue a%e i ten ,ear &r &l!er* an!le an, e4itin% in!ebte!ne t& the c&(pan, &n &recure! b, the p&lic,0

#%$ A pr&+ii&n that the p&lic, (a, be urren!ere! t& thec&(pan, at it h&(e &''ice ithin a peri&! &' n&t lethan i4t, !a, a'ter the !ue !ate &' a pre(iu( in !e'ault'&r the peci'ie! cah +alue* pr&+i!e! that the inurer(a, !e'er pa,(ent '&r n&t (&re than i4 (&nth a'terthe applicati&n there'&re i (a!e0

#h$ A table that h& in 'i%ure the n&n-'&r'eiturebene'it a+ailable un!er the p&lic, e+er, ,ear up&n!e'ault in pa,(ent &' pre(iu( !urin% at leat the 'irttent, ,ear &' the p&lic,* uch table t& be%in ith the,ear in hich uch +alue bec&(e a+ailable* an! apr&+ii&n that the c&(pan, ill 'urnih up&n re


16/38

liabilit, &' the c&(pan, i li(ite! a herein pr&+i!e!* uchliabilit, hall in n& e+ent be 'i4e! at an a(&unt le than thereer+e &n the p&lic, #e4clu!in% the reer+e '&r an, a!!iti&nalbene'it in the e+ent &' !eath b, acci!ent &r acci!ental (ean&r '&r bene'it in the e+ent &' an, t,pe &' !iabilit,$* le an,in!ebte!ne &n &r ecure! b, uch p&lic,0 n&r hall an,pr&+ii&n &' thi ecti&n appl, t& an, pr&+ii&n in an in!utrialli'e inurance p&lic, '&r a!!iti&nal bene'it in the e+ent &' !eathb, acci!ent &r acci!ental (ean.

Title 16)ARIA3LE CONTRACTS

Sec. 575. #1$ N& inurance c&(pan, auth&ri>e! t& tranactbuine in the hilippine hall iue* !eli+er* ell &r ue an,+ariable c&ntract in the hilippine* unle an! until uchc&(pan, hall ha+e ati'ie! the C&((ii&ner that it 'inancialan! %eneral c&n!iti&n an! it (eth&! &' &perati&n* inclu!in%the iue an! ale &' +ariable c&ntract* are n&t an! ill n&t beha>ar!&u t& the public &r t& it p&lic, an! c&ntract &ner. N&'&rei%n inurance c&(pan, hall be auth&ri>e! t& iue* !eli+er&r ell an, +ariable c&ntract in the hilippine* unle it ilieie auth&ri>e! t& !& & b, the la &' it !&(icile.

#5$ The ter( "variale contract"hall (ean an, p&lic, &r

c&ntract &n either a %r&up &r &n an in!i+i!ual bai iue! b, aninurance c&(pan, pr&+i!in% '&r bene'it &r &ther c&ntractualpa,(ent &r +alue thereun!er t& +ar, & a t& re'lectin+et(ent reult &' an, e%re%ate! p&rt'&li& &' in+et(ent &r&' a !ei%nate! eparate acc&unt in hich a(&unt recei+e! inc&nnecti&n ith uch c&ntract hall ha+e been place! an!acc&unte! '&r eparatel, an! apart 'r&( &ther in+et(ent an!acc&unt. Thi c&ntract (a, al& pr&+i!e bene'it &r +alueinci!ental theret& pa,able in 'i4e! &r +ariable a(&unt* &r b&th.It hall n&t be !ee(e! t& be a"security" &r"securities"a!e'ine! in The Securitie Act* a a(en!e!* &r inthe The In+et(ent C&(pan, Act* a a(en!e!* n&r ub2ect t&re%ulati&n un!er ai! Act.

#7$ In !eter(inin% the e! un!er thepr&+ii&n &' thi C&!e t& iue* !eli+er* ell &r ue +ariable

c&ntract hall* in c&nnecti&n ith a(e* etablih &ne &r (&reeparate acc&unt t& be n&n a eparate +ariable acc&unt.All a(&unt recei+e! b, the c&(pan, in c&nnecti&n ith an,uch c&ntract hich are ree! b, ecti&n &ne hun!re! ninet,-ei%ht* t& hun!re!*t& hun!re! &ne an! t& hun!re! t& '&r an, &' the 'un! &' aninurance c&(pan, in uch a(&unt &r a(&unt a (a, beappr&+e! b, the C&((ii&ner. In a!!iti&n theret&* uchc&(pan, (a, al& in+et in c&((&n t&c &r &ther e


17/38

(a!e.

Sec. 579. Aet all&cate! t& an, eparate +ariable acc&unthall be +alue! at their (aret +alue &n the !ate &' an,+aluati&n* &r i' there i n& rea!il, a+ailable (aret then inacc&r!ance ith the ter( &' the +ariable c&ntract applicable t&uch aet* &r i' there are n& uch c&ntract ter( then in uch(anner a (a, be precribe! b, the rule an! re%ulati&n &'the C&((ii&ner.

Sec. 586. The reer+e liabilit, '&r +ariable c&ntract hall be

etablihe! in acc&r!ance ith actuarial pr&ce!ure thatrec&%ni>e the +ariable nature &' the bene'it pr&+i!e!* an! hallbe appr&+e! b, the C&((ii&ner.

Title 11CLAIMS SETTLEMENT

Sec. 581. #1$ N& inurance c&(pan, !&in% buine in thehilippine hall re'ue* ith&ut 2ut caue* t& pa, &r ettleclai( ariin% un!er c&+era%epr&+i!e! b, it p&licie* n&r hallan, uch c&(pan, en%a%e in un'air clai( ettle(ent practice.An, &' the '&ll&in% act b, an inurance c&(pan,* i' c&((itte!

ith&ut 2ut caue an! per'&r(e! ith uch 'ree!t& tranact buine in the hilippine an! &' an, &ther per&n*'ir( &r c&rp&rati&n (ana%in% the a''air an!&r pr&pert, &' uchinurance c&(pan,. Such c&(pan,* a ell a uch (ana%in%per&n* 'ir( &r c&rp&rati&n* hall ub(it t& the e4a(iner all uchb&&* paper an! ecuritie a he (a, rear!&u t& the public &r t&it p&lic,h&l!er* &r that it pai!-up capital t&c* in the cae &' a!&(etic t&c c&(pan,* &r it a+ailable cah aet* in the

Ana Rhea Echavez

Insurance Code

17


18/38

cae &' a !&(etic (utual c&(pan,* &r it ecurit, !ep&it* inthe cae &' a '&rei%n c&(pan,* i i(paire! &r !e'icient* &r thatthe (ar%in &' &l+enc, ree! t& upen! &r re+&e allcerti'icate &' auth&rit, %rante! t& uch inurance c&(pan,* it&''icer an! a%ent* an! n& ne buine hall therea'ter be!&ne b, uch c&(pan, &r '&r uch c&(pan, b, it a%ent in thehilippine hile uch upeni&n* re+&cati&n &r !iabilit,c&ntinue &r until it auth&rit, t& !& buine i ret&re! b, theC&((ii&ner. 3e'&re ret&rin% uch auth&rit,* theC&((ii&ner hall rear!&u t& it p&lic,h&l!er

an! cre!it&r* the C&((ii&ner hall '&rthith &r!er thec&(pan, t& ceae an! !eit 'r&( tranactin% buine in thehilippine an! hall !ei%nate a recei+er t& i((e!iatel, taechar%e &' it aet an! liabilitie* a e4pe!iti&ul, a p&iblec&llect an! %ather all the aet an! a!(initer the a(e '&r thebene'it &' it p&lic,h&l!er an! cre!it&r* an! e4ercie all thep&er necear, '&r thee purp&e inclu!in%* but n&t li(ite!t&* brin%in% uit an! '&recl&in% (&rt%a%e in the na(e &' theinurance c&(pan,.

The C&((ii&ner hall thereup&n !eter(ine ithin thirt, !a,hether the inurance c&(pan, (a, be re&r%ani>e! &r&therie place! in uch c&n!iti&n & that it (a, be per(itte! t&reu(e buine ith a'et, t& it p&lic,h&l!er an! cre!it&ran! hall precribe the c&n!iti&n un!er hich uch reu(pti&n&' buine hall tae place a ell a the ti(e '&r 'ul'ill(ent &'uch c&n!iti&n. In uch cae* the e4pene an! 'ee in thec&llecti&n an! a!(initrati&n &' the inurance c&(pan, hall be!eter(ine! b, the C&((ii&ner an! hall be pai! &ut &' theaet &' uch c&(pan,.

I' the C&((ii&ner hall !eter(ine an! c&n'ir( ithin the ai!peri&! that the inurance c&(pan, i &l+ent* a !e'ine!hereun!er* &r cann&t reu(e buine ith a'et, t& itp&lic,h&l!er an! cre!it&r* he hall* i' the public interetre


19/38

their le%al pri&rit,.

Sec. 51. The recei+er &r the li


20/38

#8$ Appr&+e! b, a (a2&rit, +&te &' all the p&lic,h&l!er &'the cla &r clae '&r h&e bene'it the t&c it& be ac


21/38

the pr&cee! there&'* the hare hel! b, uch trutee hall be!ip&e! &' in acc&r!ance ith an &r!er &' the c&urt &'c&(petent 2uri!icti&n in the 2u!icial !itrict in hich i l&cate!the principal &''ice &' uch inurer* (a!e up&n a +eri'ie! petiti&n&' the C&((ii&ner.

Sec. 5:;. An, uch plan &' (utuali>ati&n (a, pr&+i!e '&r thecreati&n &' a +&tin% trut un!er a trut a%ree(ent '&r the h&l!in%an! +&tin% b, three &r (&re trutee &' an, p&rti&n &r all &' thehare &' the inurer n&t re


22/38

the Secretar, &' Finance '&r that purp&e an! uch &r!er (a,pr&+i!e that up&n 'ailure &' uch hareh&l!er t& urren!er uchcerti'icate '&r cancellati&n uch &r!er hall tan! in lieu &' uchurren!er an! cancellati&n. #A a(en!e! b, rei!entialDecree N&. 15=6$.

Sec. 5;6. Such inurer* a'ter (utuali>ati&n* hall be ac&ntinuati&n &' the &ri%inal inurer* an! uch (utuali>ati&n halln&t a''ect uch inurer/ certi'icate &' auth&rit, n&r e4itin% uit*ri%ht &r c&ntract e4cept a pr&+i!e! in ai! plan '&r the

acati&n* hall e4ercie all the ri%ht an! p&er an!hall per'&r( all the !utie c&n'erre! &r i(p&e! b, la up&ninurer ritin% the clae &' inurance ritten b, it* an! t&pr&tect ri%ht an! c&ntract e4itin% pri&r t& (utuali>ati&n*ub2ect t& the e''ect &' ai! plan. The b&ar! &' !irect&r &' uchinurer* pri&r t& (utuali>ati&n* (a, a!&pt a(en!(ent t& it b,-la t& tae e''ect up&n (utuali>ati&n.

Sec. 5;1. #1$ An annual (eetin% &' (e(ber hall be hel! atten &/cl&c in the (&rnin% &' the '&urth Tue!a, &' March &'each ,ear at the principal &''ice &' the inurer* unle a !i''erentti(e &r place be pr&+i!e! in the b,-la.

#5$ Special (eetin% &' the (e(ber* '&r an, purp&e &rpurp&e hat&e+er* (a, be calle! at an, ti(e b, theprei!ent* &r b, the b&ar! &' !irect&r* &r b, &ne &r (&re(e(ber h&l!in% n&t le than &ne-'i'th &' the +&tin% p&er &'uch inurer* &r b, uch &ther &''icer &r per&n a the b,-laauth&ri>e.

#7$ N&tice &' all (eetin% &' (e(ber hether annual &r pecialhall be %i+en in ritin% t& the (e(ber entitle! t& +&te b, theecretar,* &r an aitant ecretar,* &r &ther per&n char%e!

ith that !ut,* &r i' there be n& uch &''icer* &r in cae &' hine%lect &r re'ual* b, an, !irect&r &r (e(ber. At the &pti&n &'the inurer uch n&tice (a, be i(printe! &n pre(iu( n&tice &'receipt &r &n b&th.

A n&tice (a, be %i+en b, uch inurer t& an, (e(ber eitherper&nall,* &r b, (ail* &r &ther (ean &' ritten c&((unicati&n*char%e prepai!* a!!ree! t& uch (e(ber at hi a!!reappearin% &n the b&& &' the inurer* &r %i+en b, hi( t& theinurer '&r the purp&e &' n&tice. I' a (e(ber %i+e n& a!!re*n&tice hall be !ee(e! t& ha+e been %i+en hi( i' ent b, (ail &r&ther (ean &' ritten c&((unicati&n a!!ree! t& the place

here the principal &''ice &' the inurer i ituate!* &r i'publihe! at leat &nce in &(e nepaper &' %eneralcirculati&n in the place in hich ai! &''ice i l&cate!.

N&tice &' an, (eetin% &' (e(ber hall be ent t& each(e(ber entitle! theret& n&t le than e+en !a, be'&re uch

(eetin%* unle the b,-la pr&+i!e &therie.N&tice &' an, (eetin% &' (e(ber hall peci', the place* the!a, an! the h&ur &' the (eetin% an! the %eneral nature &' thebuine t& be tranacte!.

N&tice &' an annual (eetin% t& be hel! at the ti(e an! placepeci'ie! in ub-para%raph &ne &' thi ecti&n hall beu''icientl, %i+en i' publihe! at leat &nce in each &' '&uruccei+e ee in a nepaper &' %eneral circulati&n in theplace in hich the principal &''ice &' uch inurer i l&cate!* an!i' & publihe! n& &ther n&tice &' uch (eetin% hall beree! a pr&+i!e! in thi chapter hall c&ntinue in &''iceuntil the 'irt annual (eetin% &' (e(ber. At the 'irt annual(eetin% &' (e(ber an! at each annual (eetin% therea'ter!irect&r hall be electe! b, the (e(ber '&r the ter( &r ter(auth&ri>e! b, thi chapter.

#;$ The article &' inc&rp&rati&n &r the ba,-la (a, pr&+i!ethat the !irect&r (a, be !i+i!e! int& t& &r (&re clae

h&e ter( &' &''ice hall e4pire at !i''erent ti(e* but n&ter( hall c&ntinue l&n%er than i4 ,ear. In the abence &'uch pr&+ii&n* each !irect&r* e4cept (e(ber &' the b&ar! &'!irect&r at the ti(e the inurer i (utuali>e!* hall be electe!'&r a ter( &' &ne ,ear. All !irect&r hall h&l! &''ice '&r a ter( '&r

hich the, are electe! an! until their ucce&r are electe!an!


23/38

buine in the hilippine. In the cae &' uch p&licie a areub2ect t& cancellati&n b, the ith!rain% c&(pan,* it (a,cancel uch p&licie puruant t& the ter( there&' in lieu &' uchreinurance an! au(pti&n &' liabilitie.

Sec. 5;:. The C&((ii&ner hall (ae an e4a(inati&n &' theb&& an! rec&r! &' the ith!rain% c&(pan,* an! i'* up&nuch e4a(inati&n* the C&((ii&ner 'in! that the inurer han& &uttan!in% liabilitie t& rei!ent &' the hilippine* it hallcancel the ith!rain% c&(pan,/ certi'icate &' auth&rit,* i'

une4pire!* an! hall per(it the inurer t& ith!ra. The c&tan! e4pene &' all uch e4a(inati&n hall be pai! aprecribe! in ecti&n '&ur hun!re! e+enteen.

Sec. 5;;. Up&n the 'ailure &' uch ith!rain% inurancec&(pan, &r it a%ent in the hilippine t& pa, the e4pene &'uch publicati&n ithin thirt, !a, a'ter the preentati&n &' thebill there'&re* the C&((ii&ner hall c&llect uch 'ee 'r&( the!ep&it 'urnihe! in acc&r!ance ith the pr&+ii&n &' ecti&n&ne hun!re! ninet,-&ne.

Sec. 5;=. A '&rei%n li'e inurance c&(pan, that ith!ra 'r&(the hilippine hall be c&ni!ere! a "servicing insurancecompany"i' it buine tranacti&n are c&n'ine! t& acceptin%peri&!ic pre(iu( pa,(ent 'r&(* &r %rantin% p&lic, l&an an!

pa,in% cah urren!er +alue &' &uttan!in% p&licie t&* &rre+i+in% lape! p&licie &'* hilippine p&lic,h&l!er* an! uch&ther relate! er+ice.

Sec. 5;9. N& c&(pan, hall act a a er+icin% inurancec&(pan, until a'ter it hall ha+e &btaine! a pecial certi'icati&n&' auth&rit, t& act a uch 'r&( the C&((ii&ner up&napplicati&n there'&re an! pa,(ent b, the c&(pan, &' the 'eehereina'ter precribe!. Such certi'icate hall e4pire &n the lat!a, &' une &' each ,ear an! hall be renee! annuall,* hilethe c&(pan, c&ntinue t& er+ice it p&lic,h&l!er* an! t&c&(pl, ith all the applicable pr&+ii&n &' la an! re%ulati&n.

Title 19

ROFESSIONAL REINSURERSSec. 5=6. E4cept a &therie pr&+i!e! in thi C&!e* n& per&n*partnerhip* a&ciati&n &r c&rp&rati&n hall tranact an,buine in the hilippine a a pr&'ei&nal reinurer until ithall ha+e &btaine! a certi'icate &' auth&rit, '&r that purp&e'r&( the C&((ii&ner up&n the applicati&n there'&re an!pa,(ent b, uch per&n* partnerhip* a&ciati&n &r c&rp&rati&n&' the 'ee hereina'ter precribe!. A ue! in thi C&!e* theter( "professionalreinsurer" hall (ean an, per&n* partnerhip*a&ciati&n &r c&rp&rati&n that tranact &lel, an! e4clui+el,reinurance buine in the hilippine.

The C&((ii&ner (a, re'ue t& iue a certi'icate &' auth&rit,t& an, uch per&n* partnerhip* a&ciati&n &r c&rp&rati&n i'* in

hi 2u!%(ent* uch re'ual ill bet pr&(&te public interet. N&uch certi'icate &' auth&rit, hall be %rante! t& an, uch per&n*partnerhip* a&ciati&n &r c&rp&rati&n unle an! until theC&((ii&ner hall ha+e ati'ie! hi(el' b, uch e4a(inati&na he (a, (ae an! uch e+i!ence a he (a, ree! inurer0

#!$ "ontrolled insurer"(ean an auth&ri>e! inurerc&ntr&lle! !irectl, &r in!irectl, b, a h&l!in% c&(pan,0

#e$ "ontrolled person"(ean an, per&n* &ther than ac&ntr&lle! inurer* h& i c&ntr&lle! !irectl, &r in!irectl,b, a h&l!in% c&(pan,0

#'$ "olding company system"(ean a h&l!in% c&(pan,t&%ether ith it c&ntr&lle! inurer an! c&ntr&lle!per&n.

Sec. 5=7. N&tithtan!in% para%raph #b$ &' ecti&n t& hun!re!ei%ht,-t&* the C&((ii&ner (a, !eter(ine a'ter n&tice an!&pp&rtunit, t& be hear!* that a per&n e4ercie !irectl, &rin!irectl, either al&ne &r puruant t& an a%ree(ent ith &ne &r

(&re &ther per&n uch a c&ntr&llin% in'luence &+er the(ana%e(ent &r p&licie &' an auth&ri>e! inurer a t& (ae itnecear, &r appr&priate in the public interet &r '&r thepr&tecti&n &' p&lic,h&l!er &r t&ch&l!er &' the inurer that theper&n be !ee(e! t& c&ntr&l the inurer.

Sec. 5=8. The C&((ii&ner (a, !eter(ine up&n applicati&nthat an, per&n* either al&ne &r puruant t& a%ree(ent ith &ne&r (&re &ther per&n* !&e n&t &r ill n&t up&n the tain% &'&(e pr&p&e! acti&n c&ntr&l an&ther per&n. The 'ilin% &' an

Ana Rhea Echavez

Insurance Code

23


24/38

applicati&n hereun!er in %&&! 'aith b, an, per&n hall relie+ethe applicant 'r&( an, &bli%ati&n &r liabilit, i(p&e! b, thi title

ith repect t& the ub2ect &' the applicati&n* e4cept ac&ntaine! in ecti&n t& hun!re! ninet,-'&ur* until theC&((ii&ner ha acte! up&n the applicati&n. ?ithin thirt, !a,&r uch 'urther peri&! a he (a, precribe* the C&((ii&ner(a, pr&pecti+el, re+&e &r (&!i', hi !eter(inati&n* a'tern&tice an! &pp&rtunit, t& be hear!* hene+er in hi 2u!%(entre+&cati&n &r (&!i'icati&n i c&nitent ith hi title.

Sec. 5=. N&tithtan!in% an, &ther pr&+ii&n &' thi title* the'&ll&in% hall n&t be !ee(e! h&l!in% c&(panie"

#a$ auth&ri>e! inurer &r reinurer &r their ubi!iarie0

#b$ the B&+ern(ent &' the hilippine* &r an, p&liticalub!i+ii&n* a%enc, &r intru(entalit, there&'* &r an,c&rp&rati&n hich i h&ll, &ne! !irectl, &r in!irectl,b, &ne &r (&re &' the '&re%&in%.

The C&((ii&ner (a, c&n!iti&nall, &r unc&n!iti&nall, e4e(ptan, peci'ie! per&n &r cla &' per&n 'r&( an, &' the&bli%ati&n &r liabilitie i(p&e! un!er thi title* i' an! t& thee4tent he 'in! the e4e(pti&n necear, t& appr&priate in thepublic interet &r n&t a!+ere t& the interet &' p&lic,h&l!er &r

t&ch&l!er an! c&nitent ith the purp&e &' thi title.Sec. 5=:. #1$ E+er, per&n h& &n the !ate thi C&!e taee''ect i a c&ntr&lle! inurer an! e+er, per&n h& therea'terbec&(e a c&ntr&lle! inurer* hall* ithin i4t, !a, therea'ter*&r ithin thirt, !a, a'ter bec&(in% a c&ntr&lle! inurer*

hiche+er i later* re%iter ith the C&((ii&ner. Suchre%itrati&n hall be a(en!e! ithin thirt, !a, '&ll&in% an,chan%e in the i!entit, &' it h&l!in% c&(pan,. TheC&((ii&ner (a, %rant &ne &r (&re rea&nable e4teni&n &'the ti(e t& re%iter.

#5$ E+er, re%itrant hall 'urnih the C&((ii&ner ith the'&ll&in% in'&r(ati&n c&ncernin% it h&l!in% c&(pan," #a$ a c&p,&' it charter &r article &' inc&rp&rati&n an! it b,-la* #b$ the

i!entitie &' it principal hareh&l!er* &''icer* !irect&r an!c&ntr&lle! per&n* an! #c$ in'&r(ati&n a t& it capital tructurean! 'inancial c&n!iti&n* an! a !ecripti&n &' it principalbuine acti+itie.

Sec. 5=;. E+er, c&ntr&lle! inurer hall 'ile ith theC&((ii&ner uch rep&rt &r (aterial a he (a, !irect '&r thepurp&e &' !icl&in% in'&r(ati&n c&ncernin% the &perati&n &'per&n ithin the h&l!in% c&(pan, ,te( hich (a,(ateriall, a''ect the &perati&n* (ana%e(ent &r 'inancialc&n!iti&n &' the inurer.

Sec. 5==. E+er, h&l!in% c&(pan, an! e+er, c&ntr&lle! per&nithin a h&l!in% c&(pan, ,te( hall be ub2ect t&

e4a(inati&n b, &r!er &' the C&((ii&ner i' he ha caue t&belie+e that the &perati&n &' uch per&n (a, (ateriall, a''ectthe &perati&n* (ana%e(ent &r 'inancial c&n!iti&n &' an,c&ntr&lle! inurer ith the ,te( an! that he i unable t& &btainrele+ant in'&r(ati&n 'r&( uch c&ntr&lle! inurer. The %r&un!relie! up&n b, the C&((ii&ner '&r uch e4a(inati&n hall betate! in hi &r!er* hich &r!er hall be ub2ect t& 2u!icial re+ie&nl, at the intance &' the per&n &u%ht t& be e4a(ine!. Suche4a(inati&n hall be c&n'ine! t& (atter peci'ie! in the &r!er.The c&t &' uch e4a(inati&n hall be aee! a%aint theper&n e4a(ine! an! n& p&rti&n there&' hall therea'ter berei(bure! t& it !irectl, &r in!irectl, b, the c&ntr&lle! inurer.

Sec. 5=9. The C&((ii&ner hall eep the c&ntent &' each

rep&rt (a!e puruant t& thi title an! an, in'&r(ati&n &btaine!b, hi( in c&nnecti&n thereith c&n'i!ential an! hall n&t (aethe a(e public ith&ut the pri&r ritten c&nent &' thec&ntr&lle! inurer t& hich it pertain unle the C&((ii&nera'ter n&tice an! an &pp&rtunit, t& be hear! hall !eter(ine thatthe interet &' p&lic,h&l!er* t&ch&l!er &r the public ill beer+e! b, the publicati&n there&'. In an, acti&n &r pr&cee!in% b,the C&((ii&ner a%aint the per&n e4a(ine! &r an, &therper&n ithin the a(e h&l!in% c&(pan, ,te( a rep&rt &'uch e4a(inati&n publihe! b, hi( hall be a!(iible a

e+i!ence &' the 'act tate! therein.

Sec. 596. Tranacti&n ithin a h&l!in% c&(pan, ,te( t&hich a c&ntr&lle! inurer i a part, hall be ub2ect t& the'&ll&in%"

#a$ The ter( hall be 'air an! ee &r per(itan, tranacti&n hich* in the cae &' a n&n-c&ntr&lle! inurer*

&ul! be &therie c&ntrar, t& la.

Sec. 597. The C&((ii&ner* in re+iein% tranacti&npuruant t& ecti&n t& hun!re! ninet,-&ne an! t& hun!re!ninet,-t&* hall c&ni!er hether the tranacti&n c&(pl, iththe tan!ar! et '&rth in ecti&n t& hun!re! ninet, an! hetherthe, (a, a!+erel, a''ect the interet &' p&lic,h&l!er. Thiecti&n hall n&t appl, t& tranacti&n ub2ect t& &ther ecti&n&' thi C&!e hich i(p&e n&tice &r appr&+al ree! inurer* hallac


25/38

the inurer0

#b$ the trut&rthine &' the ac


26/38

&ther than hi(el'* hall be an inurance br&er ithin the intent&' thi C&!e* an! hall thereb, bec&(e liable t& all the !utie*ree! t& bec&(euret, up&n &''icial rec&%ni>ance* tipulati&n* b&n! an!

un!ertain%. The b&n! hall be in uch a(&unt a (a, be'i4e! b, the C&((ii&ner* but in n& cae le than &nehun!re! th&uan! pe&* an! hall be c&n!iti&ne! up&n 'ullacc&untin% an! !ue pa,(ent t& the per&n entitle! theret& &''un! c&(in% int& the br&er/ p&ei&n thr&u%h inurancetranacti&n un!er licene. The b&n! hall re(ain in '&rce untilreleae! b, the C&((ii&ner* &r until cancelle! b, the uret,.?ith&ut pre2u!ice t& an, liabilit, pre+i&ul, incurre! thereun!er*the uret, (a, cancel the b&n! &n thirt, !a, a!+ance rittenn&tice t& b&th the br&er an! the C&((ii&ner.

Up&n appr&+al &' the applicati&n* the applicant (ut al& 'ile t&err&r an! &(ii&n #pr&'ei&nal liabilit, &r pr&'ei&nalin!e(nit,$ p&licie iue! eparatel, b, t& inurance

c&(panie auth&ri>e! t& !& buine in the hilippine*ati'act&r, t& the C&((ii&ner t& in!e(ni', the applicanta%aint an, clai( &r clai( '&r breach &' !ut, a inurancebr&er hich (a, be (a!e a%aint hi( b, rea&n &' an,ne%li%ent act* err&r &r &(ii&n* hene+er &r here+erc&((itte! &r alle%e! t& ha+e been c&((itte!* &n the part &' theapplicant &r an, per&n h& ha been* i n&* &r (a, herea'ter!urin% the ubitence &' the p&licie be e(pl&,e! b, the ai!applicant in hi capacit, a inurance br&er* pr&+i!e! that the'ilin% &' an, clai( &r clai( un!er &ne &' uch p&licie hallpreclu!e the 'ilin% &' the ai! clai( &r clai( un!er the &therp&lic,. The ai! p&licie hall be in uch a(&unt a (a, beprecribe! b, the Inurance C&((ii&ner* !epen!in% up&n the

i>e &r a(&unt &' the br&in% buine &' the applicant* but inn& cae hall the a(&unt &' each &' uch p&licie be le than'i+e hun!re! th&uan! pe&. #A a(en!e! b, rei!entialDecree N&. 18$.

Sec. 767. The C&((ii&ner hall* in &r!er t& !eter(ine thec&(petence &' e+er, applicant t& ha+e the in! &' liceneapplie! '&r* re


27/38

c&n+icti&n there&'* hall '&r each uch &''ene be punihe! b, a'ine &' ten th&uan! pe&* &r i(pri&n(ent &' i4 (&nth* &rb&th at the !icreti&n &' the c&urt" Provided,That the pr&+ii&n&' thi ecti&n hall n&t appl, t& reinurance.

Title 5REINSURANCE 3ROERS

Sec. 716. E4cept a pr&+i!e! in the ne4t uccee!in% title* n&per&n hall act a reinurance br&er in the hilippine unlehe i auth&ri>e! a uch b, the C&((ii&ner.

A reinurance br&er i &ne h&* '&r c&(penati&n* n&t bein% a!ul, auth&ri>e! a%ent* e(pl&,ee &r &''icer &' an inurer in hichan, reinurance i e''ecte!* act &r ai! in an, (anner inne%&tiatin% c&ntract &' reinurance* &r placin% ri &' e''ectin%reinurance* '&r an, inurance c&(pan, auth&ri>e! t& !&buine in the hilippine.

Sec. 711. Up&n applicati&n an! pa,(ent &' the c&rrep&n!in%'ee hereina'ter precribe!* an! the 'ilin% &' t& err&r an!&(ii&n #pr&'ei&nal liabilit, &r pr&'ei&nal in!e(nit,$p&licie hereina'ter !ecribe!* a per&n (a,* i' '&un!


28/38

the C&((ii&ner* an! n& i(ilar certi'icate hall therea'ter beiue! in hi 'a+&r.

Sec. 755. N& certi'icate &' re%itrati&n iue! t& an un!erriterhall be +ali! a'ter the thirtieth !a, &' une &' the ,ear '&ll&in%it iuance unle it i renee!.The C&((ii&ner (a,* a'ter !ue n&tice an! hearin%* al&upen! &r cancel uch certi'icate '&r +i&lati&n &' e4itin% la*rule an! re%ulati&n &r &' an, pr&+ii&n &' thi C&!e. #Aa(en!e! b, rei!ential Decree N&. 18$.

Title ADUSTERS

Sec. 757. N& per&n* partnerhip* a&ciati&n* &r c&rp&rati&nhall act a an a!2uter* a hereina'ter !e'ine!* unleauth&ri>e! & t& act b, +irtue &' a licene iue! &r renee! b,the C&((ii&ner puruant t& the pr&+ii&n &' thiC&!e" Provided,That in the cae &' a natural per&n* he (utbe a Filipin& citi>en an! in the cae &' a partnerhip* a&ciati&n&r c&rp&rati&n* at leat i4t, per centu( &' it capital (ut be&ne! b, citi>en &' the hilippine.

Sec. 758. An a!2uter (a, be an in!epen!ent a!2uter &r apublic a!2uter.

The ter( "independent ad&uster" (ean an, per&n*partnerhip* a&ciati&n &r c&rp&rati&n hich* '&r (&ne,*c&((ii&n &r an, &ther thin% &' +alue* act '&r &r &n behal' &'an inurer in the a!2utin% &' clai( ariin% un!er inurancec&ntract &r p&licie iue! b, uch inurer.

The ter( "pulic ad&uster"(ean an, per&n* partnerhip*a&ciati&n &r c&rp&rati&n hich* '&r (&ne,* c&((ii&n &r an,&ther thin% &' +alue* act &n behal' &' an inure! in ne%&tiatin%'&r* &r e''ectin%* the ettle(ent &' a clai( &r clai( &' the ai!inure! ariin% un!er inurance c&ntract &r p&licie* &r hicha!+ertie '&r &r &licit e(pl&,(ent a an a!2uter &' uchclai(.

Sec. 75. F&r e+er, line &' inurance clai( a!2ut(ent*a!2uter hall be licene! either a in!epen!ent a!2uter &r apublic a!2uter. N& a!2uter hall act &n behal' &' an inurerunle ai! a!2uter i licene! a an in!epen!ent a!2uter0 an!n& a!2uter hall act &n behal' &' an inure! unle ai! a!2uteri licene! a a public a!2uter" Provided, however,That hen a'ir( &r per&n ha been licene! a public a!2uter* he hall n&tbe %rante! an&ther licene a in!epen!ent a!2uter an! viceversa.

N& licene* h&e+er* hall be re


29/38

N& certi'icate &' re%itrati&n iue! un!er thi title hall be +ali!a'ter the thirtieth !a, &' une &' the ,ear '&ll&in% it iuanceunle it i renee!.#A a(en!e! b, rei!ential Decree N&.18$.

Sec. 77;. The '&ll&in% !&cu(ent* hich are 'r&( ti(e t& ti(eub(itte! t& the C&((ii&ner b, a li'e inurance c&(pan,auth&ri>e! t& !& buine in the hilippine* hall be !ul,certi'ie! b, an accre!ite! actuar, e(pl&,e! b, uch c&(pan,"

1. &lic, reer+e an! net !ue an! !e'erre! pre(iu(.

5. State(ent &' bae an! net pre(iu(* l&a!in% '&r%r& pre(iu(* an! &n n&n-'&r'eiture +alue an!reer+e* hen appl,in% '&r appr&+al &' %r& pre(iu(*reer+e an! n&n-'&r'eiture +alue.

7. &licie &' inurance un!er an, plan ub(itte! t& theC&((ii&ner a ree! t& !& buine inthe hilippine (a, e(pl&, an, per&n h& i n&t&''iciall, accre!ite! un!er either &' the


30/38

t& all pr&+ii&n &' thi title hich are applicable t& 'ilin%%enerall,. The C&((ii&ner (a, re+ie uch c&&perati+eacti+itie an! practice an! i' he 'in! that an, uch acti+it, &rpractice i un'air &r unrea&nable &r &therie inc&nitent iththe pr&+ii&n &' thi title* he (a, iue a ritten &r!erpeci',in% in hat repect uch acti+it, &r practice i un'air &runrea&nable &r &therie inc&nitent ith the pr&+ii&n &'thi title* an! reati&n0&r #8$ an, &ther rele+ant 'act&r.

Sec. 7. I' the C&((ii&ner 'in! that an, rate 'ilin%

theret&'&re 'ile! ith hi( !& n&t c&(pl, ith the pr&+ii&n &'thi title &r that the, pr&+i!e rate &r rule hich are ina!eati&n* &r t& the inurer* hich 'ile!the a(e. Such &r!er hall n&t a''ect an, c&ntract &r p&lic,(a!e &r iue! pri&r t& the e4pirati&n &' uch i4t, !a, peri&!.

Sec. 7:. N& (e(ber &r ubcriber &' a ratin% &r%ani>ati&n* an!n& inurance c&(pan, !&in% buine in the hilippine* &ra%ent* e(pl&,ee &r &ther repreentati+e &' uch c&(pan,* an!n& inurance br&er hall char%e &r !e(an! a rate &r recei+e apre(iu( hich !e+iate 'r&( the rate* ratin% plan*clai'icati&n* che!ule* rule an! tan!ar!* (a!e an! lat'ile! b, a ratin% &r%ani>ati&n &r b, &r &n behal' &' the inurancec&(pan,* &r hall iue &r (ae an, p&lic, &r c&ntract in+&l+in%+i&lati&n &' uch rate 'ilin%.

Sec. 7;. N&tithtan!in% an, &ther pr&+ii&n &' thi title* up&nthe ritten applicati&n &' the inurer* tatin% hi rea&nthere'&re* 'ile! ith an! appr&+e! b, the C&((ii&ner* a ratein e4ce &' that pr&+i!e! b, a 'ilin% &therie applicable (a,be ue! &n an, peci'ic ri.

Sec. 7=. ?hene+er the C&((ii&ner hall !eter(ine* a'ter

n&tice an! a hearin%* that the rate char%e! &r 'ile! &n an, cla&' ri are e4cei+e* !icri(inat&r,* ina!e


31/38

c&(penati&n inurance.

Sec. 7:1. N& inurance c&(pan, !&in% buine in thehilippine &r an, a%ent there&'* n& inurance br&er* an! n&e(pl&,ee &r &ther repreentati+e &' an, uch inurancec&(pan,* a%ent* &r br&er* hall (ae* pr&cure &r ne%&tiate an,c&ntract &' inurance &r a%ree(ent a t& p&lic, c&ntract* &therthan i plainl, e4pree! in the p&lic, &r &ther ritten c&ntractiue! &r t& be iue! a e+i!ence there&'* &r hall !irectl, &rin!irectl,* b, %i+in% &r harin% a c&((ii&n &r in an, (anner

hat&e+er* pa, &r all& &r &''er t& pa, &r all& t& the inure!&r t& an, e(pl&,ee &' uch inure!* either a an in!uce(ent t&the (ain% &' uch inurance &r a'ter uch inurance ha beene''ecte!* an, rebate 'r&( the pre(iu( hich i peci'ie! in thep&lic,* &r an, pecial 'a+&r &r a!+anta%e in the !i+i!en! &r&ther bene'it t& accrue there&n* &r hall %i+e &r &''er t& %i+ean, +aluable c&ni!erati&n &r in!uce(ent &' an, in!* !irectl, &rin!irectl,* hich i n&t peci'ie! in uch p&lic, &r c&ntract &'inurance0 n&r hall an, uch c&(pan,* &r an, a%ent there&'* at& an, p&lic, &r c&ntract &' inurance iue!* (ae an,!icri(inati&n a%aint an, Filipin& in the ene that he i %i+enle a!+anta%e&u rate* !i+i!en! &r &ther p&lic, c&n!iti&n &rpri+ile%e than are acc&r!e! t& &ther nati&nal becaue &' hirace.

Sec. 7:5. N& inurance c&(pan, !&in% buine in thehilippine* an! n& &''icer* !irect&r* &r a%ent there&'* an! n&inurance br&er &r an, &ther per&n* partnerhip &r c&rp&rati&nhall iue &r circulate &r caue &r per(it t& be iue! &rcirculate! an, literature* illutrati&n* circular &r tate(ent &' an,&rt (irepreentin% the ter( &' an, p&lic, iue! b, an,inurance c&(pan, &' the bene'it &r a!+anta%e pr&(ie!thereb,* &r an, (ilea!in% eti(ate &' the !i+i!en! &r hare &'urplu t& be recei+e! there&n* &r hall ue an, na(e &r title &'an, p&lic, &r cla &' p&licie (irepreentin% the true naturethere&'0 n&r hall an, uch c&(pan, &r a%ent there&'* &r an,&ther per&n* partnerhip &r c&rp&rati&n (ae an, (ilea!in%

repreentati&n &r inc&(plete c&(pari&n &' p&licie t& an,per&n inure! in uch c&(pan, '&r the purp&e &' in!ucin% &rten!in% t& in!uce uch per&n t& lape* '&r'eit* &r urren!er hiai! inurance.

Sec. 7:7. I' the C&((ii&ner* a'ter n&tice an! hearin%* 'in!that an, inurance c&(pan,* ratin% &r%ani>ati&n* a%ent* br&er&r &ther per&n ha +i&late! an, &' the pr&+ii&n &' thi title* ithall &r!er the pa,(ent &' a 'ine n&t t& e4cee! 'i+e hun!re!pe& '&r each uch &''ene* an! hall i((e!iatel, re+&e thelicene iue! t& uch inurance c&(pan,* ratin% &r%ani>ati&n*a%ent* &r br&er. The iuance* pr&cure(ent &r ne%&tiati&n &' ain%le p&lic, &r c&ntract &' inurance hall be !ee(e! aeparate &''ene.

Title =RO)ISION COMMON TO ABENTS* 3ROERS*AND ADUSTERS

Sec. 7:8. A licene iue! t& a partnerhip* a&ciati&n &rc&rp&rati&n t& act a an inurance a%ent* %eneral a%ent*inurance br&er* reinurance br&er* &r a!2uter hall auth&ri>e&nl, the in!i+i!ual na(e! in the licene h& halle! t& !& buine in the hilippine a pr&+i!e!in ecti&n t& hun!re! '&rt,-nine. In the e+ent &' nati&nale(er%enc, &r cala(it,* the Fun! (a, lieie be ue! t& pa,inure! clai( hich &therie &ul! n&t be c&(penableun!er the pr&+ii&n &' the p&lic,. N& pa,(ent 'r&( the Securit,Fun! hall* h&e+er* be (a!e t& an, per&n h& &n &rc&ntr&l ten per centu( &r (&re &' the +&tin% hare &' t&c &'the in&l+ent inurer an! n& pa,(ent &n an, &ne clai( halle4cee! tent, th&uan! pe&.

Sec. 7::. Such Fun! hall c&nit &' all pa,(ent (a!e t& theFun! b, inurance c&(panie auth&ri>e! t& !& buine inthe hilippine. a,(ent (a!e b, li'e inurance c&(paniehall be treate! eparatel, 'r&( th&e (a!e b, n&n-li'einurance c&(panie an! the c&rrep&n!in% 'un! hall becalle! "+ife $ccount"an! "on-+ife $ccount"* repecti+el,* an!hall be hel! an! a!(initere! a uch b, the C&((ii&ner inacc&r!ance ith the pr&+ii&n &' thi title. The "+ife

$ccount"hall be utili>e! e4clui+el, '&r !ibure(ent thatre'er t& li'e inurance c&(panie* hile the "on-+ife

$ccount" hall be utili>e! e4clui+el, '&r !ibure(ent thatre'er t& n&n-li'e inurance c&(panie.

Sec. 7:;. All inurance c&(panie !&in% buine in thehilippine hall c&ntribute t& the Securit, Fun!* Li'e &r N&n-Li'eAcc&unt* a the cae (a, be* &n &r be'&re the 'i'teenth !a, &'une* nineteen hun!re! an! e+ent,-'i+e* the a%%re%ate a(&unt&' 'i+e (illi&n pe& '&r each Acc&unt. The c&ntributi&n &' theli'e inurance c&(panie an! &' the n&n-li'e inurancec&(panie hall be in !irect pr&p&rti&n t& the rati& beteen aparticular li'e inurance c&(pan, &r a particular n&n-li'einurance c&(pan,/ net &rth an! the a%%re%ate net &rth &'all li'e inurance c&(panie &r all n&n-li'e inurance c&(panie*a the cae (a, be* a h&n in their latet 'inancial tate(ent

appr&+e! b, the C&((ii&ner. Thi pr&p&rti&n applie! t& the'i+e (illi&n pe& hall be the c&ntributi&n &' a particularc&(pan, t& the c&rrep&n!in% Acc&unt &' the Securit, Fun!.

The a(&unt &' 'i+e (illi&n pe& in each Acc&unt hall be in the'&r( &' a re+&l+in% trut 'un!. The repecti+e c&ntributi&n &' thec&(panie hall re(ain a a!(itte! aet in their b&& an!an, !ibure(ent there'r&( hall be !e!ucte! pr&p&rti&natel,'r&( the c&ntributi&n &' each c&(pan, hich ill be all&e! a!e!ucti&n '&r inc&(e ta4 purp&e. An, earnin% &' the Fun!hall be turne! &+er t& the c&ntributin% c&(panie in pr&p&rti&nt& their c&ntributi&n.

In the cae &' !ibure(ent &' 'un! 'r&( the Fun! apr&+i!e! in the '&re%&in% para%raph* the li'e an! n&n-li'e

c&(panie* a the cae (a, be* hall replenih the a(&unt!ibure! in !irect pr&p&rti&n t& the in!i+i!ual c&(pan,/ net

&rth an! the a%%re%ate net &rth &' the li'e &r n&n-li'ec&(panie* a the cae (a, be. @&e+er* in n& cae hall theFun! e4cee! the a%%re%ate a(&unt &' ten (illi&n pe&* &r 'i+e(illi&n pe& '&r each Acc&unt.Sh&ul! the Fun!* Li'e &' N&n-Li'e Acc&unt* a the cae (a, be*be ina!e


32/38

an, pa,(ent t& the Fun! &r t& the Acc&unt c&ncerne! hen!ue* hall thereb, '&r'eit t& ai! Fun! &r Acc&unt c&ncerne! apenalt, &' 'i+e per centu( &' the a(&unt !eter(ine! t& be !uea pr&+i!e! b, thi title* plu &ne per centu( &' uch a(&unt '&reach (&nth &' !ela, &r 'racti&n there&'* a'ter the e4pirati&n &'the 'irt (&nth &' uch !ela,* but the C&((ii&ner* i' ati'ie!that the !ela, a e4cuable* (a, re(it all &r an, part &' uchpenalt,. The C&((ii&ner* in hi !icreti&n* (a, upen! &rre+&e the certi'icate &' auth&rit, t& !& buine inthe hilippine &' an, inurance c&(pan, hich hall 'ail t&c&(pl, ith thi title &r t& pa, an, penalt, i(p&e! inacc&r!ance thereith.

Sec. 7:9. The Acc&unt create! b, thi title hall be eparatean! apart 'r&( each &ther an! 'r&( an, &ther 'un!. TheTreaurer &' the hilippine hall be the cut&!ian &' the Li'eAcc&unt an! N&n-Li'e Acc&unt &' the Securit, Fun!0 an! all!ibure(ent 'r&( an, Acc&unt hall be (a!e b, theTreaurer &' the hilippine up&n +&ucher i%ne! b, theC&((ii&ner &r hi !eput,* a hereina'ter pr&+i!e!. The(&ne, &' ai! Acc&unt (a, be in+ete! b, the C&((ii&ner&nl, in b&n! &r &ther e+i!ence &' !ebt &' the %&+ern(ent &'the hilippine &r it p&litical ub!i+ii&n &r intru(entalitie.The C&((ii&ner (a, ell an, &' the ecuritie in hich anAcc&unt i in +ete!* i' a!+iable* '&r it pr&per a!(initrati&n &rin the bet interet &' uch Acc&unt.

Sec. 7;6. a,(ent 'r&( either the Li'e Inurance Acc&unt &rN&n-Li'e Acc&unt* a the cae (a, be* hall be (a!e b, theTreaurer &' the hilippine t& the C&((ii&ner* up&n theauth&rit, &' appr&priate certi'icate 'ile! ith hi( b, theC&((ii&ner actin% in uch capacit,.

Sec. 7;1. The C&((ii&ner (a,* in hi !icreti&n* !ei%nate&r app&int a !ul, auth&ri>e! repreentati+e &r repreentati+e t&appear an! !e'en! be'&re an, c&urt &r &ther b&!, &r &''icialha+in% 2uri!icti&n an, &r all acti&n &r pr&cee!in% a%aintprincipal &r aure! &n inurance p&licie &r c&ntract iue!

t& the( here the inurer ha bec&(e in&l+ent &r unable t&(eet it inurance &bli%ati&n. The C&((ii&ner hall ha+e* a&' the !ate &' in&l+enc, &' uch inurer &r a &' the !ate &' itinabilit, (eet it inurance &bli%ati&n* &nl, the ri%ht hichuch inurer &ul! ha+e ha! i' it ha! n&t bec&(e in&l+ent &runable t& (eet it inurance &bli%ati&n. F&r the purp&e &' thititle the C&((ii&ner hall ha+e p&er t& e(pl&, uchc&unel* cler an! aitant a he (a, !ee( necear,.

Sec. 7;5. The e4pene &' a!(initerin% an Acc&unt hall bepai! &ut &' the Acc&unt c&ncerne!. The C&((ii&ner haller+e a a!(initrat&r &' the Fun! an! &' the Acc&unt ith&uta!!iti&nal c&(penati&n* but (a, be all&e! an! pai! 'r&( theAcc&unt c&ncerne! e4pene incurre! in the per'&r(ance &' hi

!utie in c&nnecti&n ith ai! Acc&unt. The c&(penati&n &'th&e per&n e(pl&,e! pa,able 'r&( the Acc&unt c&ncerne!.The C&((ii&ner hall inclu!e in hi annual rep&rt t& theSecretar, &' Finance a tate(ent &' the e4pene &'a!(initrati&n &' the Fun! an! &' the Li'e Acc&unt an! N&n-Li'eAcc&unt '&r the prece!in% ,ear.

Chapter )ICOMULSOR MOTOR )E@ICLELIA3ILITINSURANCE

Sec. 7;7. F&r purp&e &' thi chapter"#a$ "Motor ehicle" i an, +ehicle a !e'ine! in ecti&n three*para%raph #a$ &' Republic Act Nu(bere! F&ur Th&uan! One

@un!re! Thirt,-Si4* Otherie n&n a the "+andTransportation and Traffic ode#"

#b$ "Passenger"i an, 'are pa,in% per&n bein% tranp&rte! an!c&n+e,e! in an! b, a (&t&r +ehicle '&r tranp&rtati&n &'paen%er '&r c&(penati&n* inclu!in% per&n e4prel,auth&ri>e! b, la &r b, the +ehicle/ &perat&r &r hi a%ent t&ri!e ith&ut 'are.

#c$"Third-Party"i an, per&n &ther than a paen%er a!e'ine! in thi ecti&n an! hall al& e4clu!e a (e(ber &' the

h&ueh&l!* &r a (e(ber &' the 'a(il, ithin the ec&n! !e%ree&' c&nan%uinit, &r a''init,* &' a (&t&r +ehicle &ner &r lan!tranp&rtati&n &perat&r* a lieie !e'ine! herein* &r hie(pl&,ee in repect &' !eath* b&!il, in2ur,* &r !a(a%e t&pr&pert, ariin% &ut &' an! in the c&ure &' e(pl&,(ent. #Aa(en!e! b, rei!ential Decree N&. 1=18 an! 19=1$.

#!$ ".wner"&r "motor vehicle owner"(ean the actual le%al&ner &' a (&t&r +ehicle* in h&e na(e uch +ehicle i !ul,re%itere! ith the Lan! Tranp&rtati&n C&((ii&n0

#e$ "+and transportation operator"(ean the &ner &r &ner&' (&t&r +ehicle '&r tranp&rtati&n &' paen%er '&rc&(penati&n* inclu!in% ch&&l bue0

#'$ "!nsurance policy"&r "Policy" re'er t& a c&ntract &' inurancea%aint paen%er an! thirt,-part, liabilit, '&r !eath &r b&!il,in2urie an! !a(a%e! t& pr&pert, ariin% 'r&( (&t&r +ehicleacci!ent. #A a(en!e! b, rei!ential Decree N&. 18 an!1=18$.

Sec. 7;8. It hall be unla'ul '&r an, lan! tranp&rtati&n&perat&r &r &ner &' a (&t&r +ehicle t& &perate the a(e in thepublic hi%ha, unle there i in '&rce in relati&n theret& ap&lic, &' inurance &r %uarant, in cah &r uret, b&n! iue! in

acc&r!ance ith the pr&+ii&n &' thi chapter t& in!e(ni', the!eath* b&!il, in2ur,* an!&r !a(a%e t& pr&pert, &' a thir!-part,&r paen%er* a the cae (a, be* ariin% 'r&( the uethere&'. #A a(en!e! b, rei!ential Decree N&. 18 an!1=18$.

Sec. 7;. The C&((ii&ner hall 'urnih the Lan!Tranp&rtati&n C&((ii&ner ith a lit &' inurance c&(panieauth&ri>e! t& iue the p&lic, &' inurance &r uret, b&n!ree! capacit, &' 'r&( i4t& ele+en paen%er" Thirt, th&uan! pe&0

#!$ M&t&r +ehicle ith an auth&ri>e! capacit, &' 'i+e &rle paen%er" Fi+e th&uan! pe& (ultiplie! b, theauth&ri>e! capacit,.

Provided, however, That uch cah !ep&it (a!e t&* &r uret,b&n! p&te! ith* the C&((ii&ner hall be re&rte! t& b, hi(in cae &' acci!ent the in!e(nitie '&r hich t& thir!-partiean!&r paen%er are n&t ettle! acc&r!in%l, b, the lan!

Ana Rhea Echavez

Insurance Code

32


33/38

tranp&rtati&n &perat&r an!* in that e+ent* the ai! cah !ep&ithall be replenihe! &r uch uret, b&n! hall be ret&re! ithi4t, !a, a'ter i(pair(ent &r e4pir,* a the cae (a, be* b,uch lan! tranp&rtati&n &perat&r* &therie* he hall ecure theinurance p&lic, re


34/38

&r !&cu(ent releain% it 'r&( liabilit, un!er the p&lic, &'inurance &r uret, b&n! iue!. #A a(en!e! b, rei!entialDecree N&. 18$.

In cae &' an, !ipute in the en'&rce(ent &' the pr&+ii&n &'an, p&lic, iue! puruant t& thi chapter* the a!2u!icati&n &'uch !ipute hall be ithin the &ri%inal an! e4clui+e

2uri!icti&n &' the C&((ii&ner* ub2ect t& the li(itati&npr&+i!e! in ecti&n '&ur hun!re! i4teen.

Sec. 7=:. It hall be unla'ul '&r a lan! tranp&rtati&n &perat&r

&r &ner &' (&t&r +ehicle t& ree! alab&r uni&n hall be %&+erne! b, the Lab&r C&!en&tithtan!in% an, (utual bene'it 'eature pr&+ii&n in itcharter a inci!ent t& it &r%ani>ati&n.In n& cae hall a (utual bene'it a&ciati&n be &r%ani>e! an!auth&ri>e! t& tranact buine a a charitable &r bene+&lent

&r%ani>ati&n* an! hene+er it ha thi 'eature a inci!ent t& ite4itence* the c&rrep&n!in% charter pr&+ii&n hall be re+ie!t& c&n'&r( ith the pr&+ii&n &' thi ecti&n. Mutual bene'ita&ciati&n* alrea!, licene! t& tranact buine a uch &nthe !ate thi C&!e bec&(e e''ecti+e* ha+in% charitable &rbene+&lent 'eature hall aban!&n uch inci!ental purp&eup&n e''ecti+it, &' thi C&!e i' the, !eire t& c&ntinue &peratin%a uch (utual bene'it a&ciati&n. #A a(en!e! b,rei!ential Decree N&. 18$.

Sec. 791. A (utual bene'it a&ciati&n* be'&re it (a, tranact auch* (ut 'irt ecure a licene 'r&( the C&((ii&ner. Theapplicati&n '&r uch licene hall be 'ile! ith the C&((ii&nert&%ether ith certi'ie! true c&pie &' the article &' inc&rp&rati&n&r the c&ntituti&n an! b,-la &' the a&ciati&n* an! alla(en!(ent theret&* an! uch &ther !&cu(ent &r teti(&niea the C&((ii&ner (a, re


35/38

inurance c&(pan, auth&ri>e! t& tranact buine &r t& apr&'ei&nal reinurer auth&ri>e! t& accept li'e ri in thehilippine" Provided* That c&p, &' the !ra't &' uch reinurancea%ree(ent hall be ub(itte! t& the C&((ii&ner '&r hiappr&+al. The a&ciati&n (a, tae cre!it '&r the reer+e &nuch ce!e! ri t& the e4tent reinure!.

Sec. 79. The c&ntituti&n &r b,-la &' a (utual bene'ita&ciati&n (ut !itinctl, tate the purp&e '&r hich !uean!&r ae(ent are (a!e an! c&llecte! an! the p&rti&n

there&' hich (a, be ue! '&r e4pene.Death bene'it an! &ther relie' 'un! hall be create! an! ue!e4clui+el, '&r pa,in% bene'it !ue the (e(ber un!er theirrepecti+e (e(berhip certi'icate. A %eneral 'un! halllieie be create! an! ue! '&r e4pene &' a!(initrati&n &'the a&ciati&n.

Sec. 79:. E+er, &uttan!in% (e(berhip certi'icate (ut ha+e*a'ter three 'ull ,ear &' bein% c&ntinu&ul, in '&rce* an ein% the !i&luti&n* !ul,a!&pte! b, the a''ir(ati+e +&te &' t&-thir! &' the (e(ber ata (eetin% calle! '&r that purp&e* the 'inancial tate(ent a &'the !ate &' the re&luti&n* an! uch &ther paper &r !&cu(enta (a, be re


36/38

#c$ 'aile! t& c&(pl, ith an, &r!er* rulin%* intructi&n*re


37/38

appeal t& the Inter(e!iate Appellate C&urt in the (annerpr&+i!e! '&r in the Rule &' C&urt '&r appeal 'r&( the Re%i&nalTrial C&urt t& the Inter(e!iate Appellate C&urt. #A a(en!e! b,3ata a(bana 3l%. =;8$.

A &&n a a !ecii&n* &r!er &r rulin% ha bec&(e 'inalan! e4ecut&r,* the C&((ii&ner hall motu proprio&r &n(&ti&n &' the interete! part,* iue a rit &' e4ecuti&n re


38/38

'ee &' &ne th&uan! pe&.

#$ The C&((ii&ner (a, 'i4 an! c&llect 'ee &r char%e '&r!&cu(ent* trancript* &r &ther (aterial hich (a, be'urnihe! b, hi( n&t in e4ce &' rea&nable c&t. #A a(en!e!b, rei!ential Decree N&. 18$.

Sec. 81=. I' the t&tal e4pene &' the Inurance C&((ii&ner'&r e+er, 'ical ,ear e4cee! the a%%re%ate a(&unt &' the 'eec&llecte! un!er the pertinent pr&+ii&n &' thi C&!e* the e4cehall be char%e! a%aint the Inurance Fun!* hich hall

herea'ter be create! &ut &' the pr&cee! &' ta4e &n inurancepre(iu( (enti&ne! in ecti&n t& hun!re! 'i't,-'i+e &' theNati&nal Internal Re+enue C&!e* a a(en!e!" Provided,however* That pen!in% the creati&n &' ai! Inurance Fun!* thepr&+ii&n &' ecti&n t&* three an! '&ur &' Republic ActNu(bere! T& @un!re! Se+ent,-Fi+e* hall c&ntinue t& re(ainin '&rce an! e''ect.

MISCELLANEOUS RO)ISIONS

Sec. 819. An, per&n* c&(pan, &r c&rp&rati&n ub2ect t& theuper+ii&n an! c&ntr&l &' the C&((ii&ner h& +i&late an,pr&+ii&n &' thi C&!e* '&r hich n& penalt, i pr&+i!e!* hall be!ee(e! %uilt, &' a penal &''ene* an! up&n c&n+icti&n be

punihe! b, a 'ine n&t e4cee!in% ten th&uan! pe& &ri(pri&n(ent &' i4 (&nth* &r b&th* at the !icreti&n &' thec&urt.

I' the &''ene i c&((itte! b, a c&(pan, &r c&rp&rati&n* the&''icer* !irect&r* &r &ther per&n rep&nible '&r it &perati&n*(ana%e(ent* &r a!(initrati&n* unle it can be pr&+e! thatthe, ha+e taen n& part in the c&((ii&n &' the &''ene* halllieie be %uilt, &' a penal &''ene* an! up&n c&n+icti&n bepunihe! b, a 'ine n&t e4cee!in% ten th&uan! pe& &ri(pri&n(ent &' i4 (&nth* &r b&th* at the !icreti&n &' thec&urt.

Sec. 856. All cri(inal acti&n '&r the +i&lati&n &' an, &' thepr&+ii&n &' thi C&!e hall precribe! a'ter three ,ear 'r&(

the !ic&+er, &' uch +i&lati&n" Provided,That uch acti&nhall in an, e+ent precribe a'ter ten ,ear 'r&( the c&((ii&n&' uch +i&lati&n.

Sec. 851. An, per&n* partnerhip* a&ciati&n &r c&rp&rati&nheret&'&re auth&ri>e!* licene! &r re%itere! b, the InuranceC&((ii&ner hall be !ee(e! t& ha+e been auth&ri>e!*licene! &r re%itere! un!er the pr&+ii&n &' thi C&!e an!hall be %&+erne! b, the pr&+ii&n there&'" Provided,however, That here an, uch per&n* partnerhip* a&ciati&n&r c&rp&rati&n i a''ecte! b, the ne re

3rd Exam Insurance

Documents