Date FiledRef NoSubject NoSubject TitleDate Adopted

Circular Letter: 2013-25Advisory Committees for the Implementation of R.A. No. 10607 Date: 13 September 2013

Circular Letter: 2013-26Amendment to the Revised Template of Trust Agreement Date: 16 September 2013

Circular Letter: 2013-32Adoption and Implementation of the 2013 Dispute Settlement Procedures in Relation to the Recruitment and Transfers of Employees and Sales Producers

Date: 04 November 2013

Circular Letter: 2013-33Adoption and Implementation of the 2013 Market Conduct GuidelinesDATE: 04 November 2013

Circular Letter: 2013-37No Gifts Policy DATE: 06 December 2013

Circular Letter: 2013-25

Category: Insurance Commissioner

Date: 13 September 2013

CIRCULAR LETTERTO: All Insurance Companies and Covered Persons and Entitites

SUBJECT: Advisory Committees for the Implementation of R.A. No. 10607

I. INTRODUCTION The Insurance Commissioner is given the power to issue rules and regulations for details therein for the effective implementation of the RA 10607. II. APPLICABLE LAW

RA 10607III. CONTENTS Main Purpose

In the absence of an Over-all Implementing Rules and Regulations, the Advisory Committee in each area of concern was hereby created. The said group was formed mainly give advice to the Insurance Commission on the substance of the proposed rules and regulations and the proper use of action to be taken. Coverage

Members of the Advisory Committees are officers and personnel of the Insurance Commission, officers of insurance companies or supervised entities, and other persons whose valuable expertise is needed in the formulation of the rules. Areas of Concern Solvency

Financial Statements and Reporting

Self-Regulatory Organization

Bancassurance

Trust Business

Electronic Policy Form and Processes

Premium Deposit Fund

Adjudication of Cases

Assets, Investments and Valuation

Capitalization (fixed capital and risk-based capital framework)**Circular Letter: 2013-26

Category: Trust

Date: 16 September 2013

CIRCULAR LETTERTO: All Pre-need Companies & Trust Entities Authorized to Act as Trustee for Pre-need Trust Funds

SUBJECT: Amendment to the Revised Template of Trust Agreement I. INTRODUCTION

Trust Fund is at all times for the sole benefit of the planholders. Hence, to maintain the said purpose, the template for trust agreement is revised. II. HISTORY Supersedes to Circular Letter No. 2-2013 regarding the Revised Template of Trust Agreement III. APPLICABLE LAW Chapter 8, Section 30 of the Pre-Need Code

Rule 8 Section 32 of the Implementing Rules and Regulations of the Pre-Need Code IV. CONTENTS

The phrase contributions of cancelled plans to the Fund has been deleted.

The said Article shall now read as

ARTICLE III WITHDRAWAL AND PAYMENTS MADE OUT OF THE TRUST FUND. No withdrawal shall be made from the Trust Fund except for paying the Benefits such as monetary consideration, the cost of services rendered or property delivered, trust fees, bank charges and investment expenses in the operation of the Trust Fund, termination values payable to the Planholders, annuities, and taxes on Trust Funds. Furthermore, only reasonable withdrawal for minor repairs and costs of ordinary maintenance of trust fund assets shall be allowed. Except as otherwise provided under this Article, the Pre-Need Code and its Implementing Rules and Regulations, no withdrawal shall be made from the TRUST FUND unless approved by the Commission. The TRUST FUND shall be at all times be sufficient to cover the required pre-need reserve. **Circular Letter: 2013-32

Category: Sales Agents

Date: 04 November 2013

CIRCULAR LETTERTO: All Life Insurance Companies Doing Business In the Philippines and their Agents

SUBJECT: Adoption and Implementation of the 2013 Dispute Settlement Procedures in Relation to the Recruitment and Transfers of Employees and Sales ProducersI. INTRODUCTION Dispute Settlement Procedures is to encourage the early and expeditious settlement of disputes, to provide an alternative, and less adversarial, mode of dispute resolution, and to ensure confidentiality of the proceedings for the protection of the interest of all Members. The circular covers the provisions regarding conciliation, mediation and arbitration. II. HISTORY Supersedes of the Insurance Commission Circular Letter 6-2002, dated 02 March 2002 III. APPLICABLE LAW Pursuant to Sec 438 of the 2013 Amended Insurance Code, non-compliant companies, officers or agents shall be subject to the disciplinary sanctions provided under the said section.

The provisions of the Labor Code are applicable as the case may be.

The provisions of Republic Act No. 876 (Arbitration Law) shall apply suppletory. Specifically, Section 24 thereof regarding grounds for vacating an award shall likewise apply. IV. CONTENTS Term The recruiting company of the sales producers is given a maximum period of sixty (60) days before the start of the new contract to retain the employee so as to allow the employer therein to have adequate time to take remedial steps to avoid work or service interruption. Definition of Terms Conciliation

refers to the informal process where a neutral third party (Conciliator) brokers an amicable settlement between the disputants

If dispute should arise, the parties shall attempt to reconcile through Conciliation. If Conciliation fails, the parties shall enter into Mediation. If Mediation fails, the parties shall enter into Arbitration. Mediation voluntary process in which a Mediator, who is selected by the disputant parties, facilitates communication and negotiation, and assists the parties in reaching a voluntary agreement regarding a dispute. Arbitration

refers to a voluntary process in which one or more arbitrators, appointed in facilitates communication and negotiation, and assists the parties in reaching a voluntary agreement regarding a dispute accordance with these rules, resolve a dispute by rendering an award

The request for Arbitration shall be submitted to Philippine Life Insurance Association (PLIA), through the PLIA General Manager who shall act as the Secretary of the proceedings. Within 15 days therefrom, the other party shall file an Answer, copy furnished the other party.

The Arbitral Panel shall be composed of 3 arbitrators. Conciliator shall be chosen from the roster of PLIA-Accredited Mediators and Arbitrators. Proceedings

Preliminary Conference The issues to be resolved must be specified and clarified. The uncontested facts must also be stipulated. The identification of the witnesses and the extent of, and schedule for, presentation of material and relevant documents as evidenced and other information shall be considered so as to expedite the arbitration proceedings. Hearing Privacy of the hearing shall be maintained by having only persons with direct interest to attend therein.

Full and equal opportunity to present material and relevant evidence shall be afforded the parties to the dispute. Decision based on the merits of the case

Remedy or relief that they may deem just and equitable including but not not limited to specific performance may be granted the parties.

Fees, expenses and compensation in favor of any party may be assessed and also awarded. Conclusion of Proceedings Arbitration proceedings are generally concluded with the transmittal of the decision to all parties.

**

Circular Letter: 2013-33

Category: Market Conduct Guidelines pursuant to Section 374 of RA 10607

Date: 04 November 2013

CIRCULAR LETTERTO: All Life Insurance Companies Doing Business In the Philippines and their Agents

SUBJECT: Adoption and Implementation of the 2013 Market Conduct GuidelinesI. INTRODUCTION Pursuant to Section 374 of RA 10607, the main objective is to adopt and promulgate a code of conduct to promote integrity, honesty and ethical business practices among insurance agents, distributors and other intermediaries by ensuring the effective implementation of the MARKET CONDUCT GUIDELINES II. HISTORY Supersedes to Circular No. 16-2007III. APPLICABLE LAW RA 10607

IV. CONTENTS Definition

a consolidation of all the applicable provisions of the Insurance Code and other rules and regulations of the Insurance Commission Applicability

to all agents and general agents who have been issued Certificates of Authority by the Commissioner

to all agency leaders

to those who perform the functions in the selling of life insurance products and services regardless of their given names or designations Obligations of the Agents

Duty of agents not to Advance or Finance of premium payments in behalf of their clients

Duty of agents to not give any discount, rebate and inducement in favor of their clients

DUTY OF AGENTS TO THE INSURANCE PROFESSION

Duty of Strict compliance with the guidelines as well as local laws such as the Insurance Code, Anti-Money Laundering Act and the Terrorism Financing Prevention and Suppression Act

Duty to Report another's Agent Misconduct

Duty to Practice ethical market conduct and periodically participate in Business Conduct training sessions as part of the Continuing Professional Development requirement

Duty to disclose any actual or potential conflicts of interest to the Company

DUTY OF AGENTS TO THE CLIENTS

Duty to not co-mingle the personal funds with the premium payments of the clients and to encourage their clients to pay such directly to the Company's Office

Duty to not manipulate sales for purpose of qualifying for incentives, contests or awards

Duty to comply with the Best Practices on Documents and with the Procedure for Delivery of Policies and other Documents

Duty of agents to not make and name themselves as trustees, assignees, owners or beneficiaries of any of their client's policies

DUTY OF AGENTS TO THE COMPANY

Duty to use only the approved advertisement, marketing and sales materials of the company

Duty to keep the client's information and data private

Duty to not commit breach of trust and misappropriate of premiums

Duty to cooperate and render full assistance in investigation, inspection and audit

DUTY OF AGENCY LEADERS

Duty to recruit, select and appoint only those prospects that are qualified in accordance with the Insurance Code and other pertinent laws. Disciplinary Sanctions Subject to the discretion of the Commissioner in accordance with the laws herein, as provided under Section 438 of RA 10607, the following are the sanctions: (a) Fines not less than Five thousand pesos (P5,000.00) and not more than Two hundred thousand pesos (P200,000.00); and (b) Suspension, or after due hearing, removal of directors and/or officers and/or agents. Penalties (NOTE: Letter of Warning must first be given) Suspension of Selling Privileges

Termination of agent's contract

Issuance of Release Order once a suspended agent is cleared** Circular Letter: 2013-37

Category: Insurance Commissioner

Date: 06 December 2013

CIRCULAR LETTERTO: All Insurance Commission Officials and Employees, Companies and Individuals under the Supervision of the Insurance Commission and all Others Concerned

SUBJECT: No Gifts Policy I. INTRODUCTION

So as to uphold honesty and integrity in serving the public and to take affirmative and effective measures against graft and corruption, the 'No Gifts Policy' is hereby implemented to provide a more transparent and effective framework. It is aimed to promote the ethical business practices and high standards of corporate governance. II. HISTORY

Supersedes to Circular No. 12-2012 or the Gifts Policy dated 01 June 2012III. APPLICABLE LAW

Section 27, Article II and Section 1, Article XI of the 1987 Constitution

Section 1 and Section 3 of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act

Section 2 and Section 7(d) Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees

Rule II of Department Order No. 21-2010 of the Department of Finance or the Policy on Gift Giving and Acceptance of Gifts, Donations and Sponsorship IV. CONTENTS

Definition of 'gift'

First and foremost, gift refers to a thing disposed of gratuitously in favor of another, and shall include a simulated sale or a disposition onerous to the giver and/or unduly beneficial to the recipient. Gift shall also include a right, privilege, entertainment, exemption, or any other similar act of liberality in favor of another. This shall also include invitation for breakfast, lunch, snacks or dinner outside the premises of the Office.

Coverage

The said Policy covers ALL officials and employees, including contractual and job order employees of the Insurance Commission as well as consultants, conservators, receivers, and liquidators appointed by the Commissioner with respect to the Company assigned them. This shall also cover the agents or any person who acts in representation of the persons mentioned above.

Prohibitions

The Commission, its officers and employees, shall NOT SOLICIT, DIRECTLY OR INDIRECTLY, any gifts, gratuity, favor, entertainment, loan or use, anything of pecuniary value from a person, groups, associations, suppliers, or juridical entitites, whether from the public or the private sectors, at any time, on or off the work premises, in the course of their official duties or in connection with any operation being regulated by, or any transaction which may be affected by the functions of their office.

The Insurance Commission officials and employees shall NOT accept any remuneration BEYOND what they are legally entitled to receive in their official capacity in accordance with law.

Exemptions

The acceptance of emergency contributions or assistance of reasonable value or amount in case of death, illness, disaster, and other similar situations

The acceptance of corporate gifts as token of gratitude during anniversary and special occassions

The acceptance of seminar bags and contents, partaking moderately priced meals and beverages at official events, provided that everyone in the said event was given the same

The acceptance of books, pamphlets, publications and data useful to the Commission

The acceptance of scholarship or fellowship grant, travel grants or expense for travel

The acceptance or availment by the Commission of grants from local or foreign institutions in the pursuit of the mandates, projects and activities such as those coming from Asian Development Bank (ADB), World Bank (WB), etc.

The acceptance of performance-based reward and similar benefits in accordance with law

Procedures

The gifts which are considered inappropriate or impractical to return shall be immediately handed over to the Deputy Commissioner for Management Support Services. Then, the said gifts shall be subsequently forwarded to the Records Section of the Administrative Division for proper recording or storage.

A Registry Book of Gifts shall be maintained in the Records Section to keep track of the gifts not returned to the giver.

Sanctions

Penalty Clause provides that any violation of the policy will be subject to the administrative sanctions provided under the Civil Service Law and Rules, Revised Rules on Administrative Cases in the Civil Service, and other applicable laws. Insofar practicable and deemed proper, all cases must first be resolved by the Commission. **