8/13/2019 sec 273 - 322

1/33

PD 612 RA 10607Title 18

WITHDRAWAL OF FOREIGN INSURANCE COMPANIESSection 273. A foreign insurancecompany doing business in the

Philippines, upon payment of thefee hereinafter prescribed andsurrender to the Commissionerof its certificate of authority, mayapply to withdraw from thePhilippines. Such applicationshall be duly executed in writing,accompanied by eidence of dueauthority for such execution,properly ac!nowledged.

Section 27". #he Commissionershall publish the application forwithdrawal dail !"# a $e#i"d"! "%e &ee' i% t&"%e&($a$e#( "! )e%e#al*i#*+lati"% i% t,e Cit "!Ma%ila- "%e i% E%)li(, a%dt,e "t,e# i% Pili$i%".#heexpenses of such publicationshall be paid by the insurance

company filing such application.

Section 27$. %ery foreigninsurance company desiring towithdraw from the Philippinesshall, prior to such withdrawal,discharge its liabilities topolicyholders and creditors inthis country. &n case of itspolicies insuring residents of thePhilippines, it shall cause theprimary liabilities under suchpolicies to be reinsured andassumed by another insurancecompany authori'ed to transactbusiness in the Philippines. &n thecase of such policies as aresub(ect to cancellation by thewithdrawing company, it maycancel such policies pursuant tothe terms thereof in lieu of such

reinsurance and assumption ofliabilities.

Section 2)*. A foreign insurancecompany doing business in the

Philippines, upon payment of thefee hereinafter prescribed andsurrender to the Commissionerof its certificate of authority, mayapply to withdraw from thePhilippines. Such applicationshall be duly executed in writing,accompanied by eidence of dueauthority for such execution,properly ac!nowledged.

Section 2)2. #he Commissionershall publish the application forwithdrawal "%*e a &ee' !"#t,#ee / *"%(e*+tie &ee'(i% a %e&($a$e# "! )e%e#al*i#*+lati"% i% t,e P,ili$$i%e(.#he expenses of such publicationshall be paid by the insurancecompany filing such application.

Section 2)3. %ery foreigninsurance company desiring towithdraw from the Philippinesshall, prior to such withdrawal,discharge its liabilities topolicyholders and creditors inthis country. &n case of itspolicies insuring residents of thePhilippines, it shall cause theprimary liabilities under suchpolicies to be reinsured andassumed by another insurancecompany authori'ed to transactbusiness in the Philippines. &n thecase of such policies as aresub(ect to cancellation by thewithdrawing company, it maycancel such policies pursuant tothe terms thereof in lieu of suchreinsurance and assumption of

liabilities.

8/13/2019 sec 273 - 322

2/33

Section 27+. #he Commissionershall 3a'ean examination ofthe boo!s and records of thewithdrawing company, and if,

upon such examination, theCommissioner finds that theinsurer has no outstandingliabilities to #e(ide%t( "! t,eP,ili$$i%e(, it shall cancel thewithdrawing companyscertificate of authority, ifunexpired, and shall permit theinsurer to withdraw. #he cost andexpenses of all such examinationshall be paid as prescribed in(e*ti"% !"+# ,+%d#ed(ee%tee%.

Section 277. -pon the failure of

such withdrawing insurancecompany or its agents in thePhilippines to pay the expensesof such publication within thirtydays after the presentation ofthe bill therefor, theCommissioner shall collect suchfee from the deposit furnished inaccordance with the proisionsof (e*ti"% "%e ,+%d#ed%i%et4"%e.

Section 27). A foreign lifeinsurance company thatwithdraws from the Philippinesshall be considered a 5sericinginsurance company5if itsbusiness transactions areconfined to accepting periodicpremium payments from, orgranting policy loans and paying

cash surrender alues ofoutstanding policies to, or

Section 2)". #he Commissionershall *a+(ean examination ofthe boo!s and records of thewithdrawing company, and if,upon such examination, the

Commissioner finds that theinsurer has no outstandingliabilities to $"li*,"lde#( a%d*#edit"#( i% t,e P,ili$$i%e(-a%d %" $"li*ie( +%*a%*elled"# it( $#i3a# liailitie( ,aeee% #ei%(+#ed "# a((+3ed a%"t,e# i%(+#a%*e*"3$a% a+t,"#ied t"t#a%(a*t +(i%e(( i% t,eP,ili$$i%e(- a( #e9+i#ed i%t,e $#e*edi%) (e*ti"%, it shallcancel the withdrawingcompanys certificate ofauthority, if unexpired, and shallpermit the insurer to withdraw.#he cost and expenses of allsuch examination shall be paidas prescribed in Se*ti"% ::0.

Section 2)$. -pon the failure of

such withdrawing insurancecompany or its agents in thePhilippines to pay the expensesof such publication within thirty/301 days after the presentationof the bill therefor, theCommissioner shall collect suchfee from the deposit furnished inaccordance with the proisions ofSe*ti"% 1;7.

Section 2)+. A foreign lifeinsurance company thatwithdraws from the Philippinesshall be considered a sericinginsurance company if itsbusiness transactions areconfined to accepting periodicpremium payments from, orgranting policy loans and paying

cash surrender alues ofoutstanding policies to, or

8/13/2019 sec 273 - 322

3/33

reiing lapsed policies of,Philippine policyholders, andsuch other related serices.

Section 27. o company shall

act as a sericing insurancecompany until after it shall haeobtained a special *e#ti!i*ati"%"! a+t,"#itto act as such fromthe Commissioner uponapplication therefor and paymentby the company of the feeshereinafter prescribed. Suchcertificate shall expire on thela(t da "!

8/13/2019 sec 273 - 322

4/33

any such $e#("%- $a#t%e#(,i$-a(("*iati"% "# *"#$"#ati"% i!-i% ,i( >+d)3e%t- (+*, #e!+(al&ill e(t $#"3"te $+li*i%te#e(t.o such certificate of

authority shall be granted to any(+*, $e#("%- $a#t%e#(,i$-a(("*iati"% "# *"#$"#ati"%unless and until theCommissioner shall haesatisfied himself by suchexamination a( ,e 3a 3a'eand such eidence as ,e 3a#e9+i#e t,at (+*, $e#("%-$a#t%e#(,i$- a(("*iati"% "#*"#$"#ati"%is 6ualified by thelaws of the Philippines totransact business therein as aprofessional reinsurer.

efore issuing such *e#ti!i*ate"! a+t,"#it "! t,eC"33i((i"%e#must besatisfied that the name of theapplicant is not that of any other!nown company transacting

insurance or reinsurancebusiness in the Philippines, or aname so similar as to becalculated to mislead the public.

Such certificate of authority shallexpire on the la(t da "!

8/13/2019 sec 273 - 322

5/33

sub(ect to the proisions of thisCode and other related laws, andto the (urisdiction andsuperision of the Commissioner.

Section 2)*. Any $e#("%,partnership, association, orcorporation authori'ed totransact solely reinsurancebusiness 3+(t ,ae a $aid4+$*a$ital (t"*' "! at lea(t te%3illi"% $e("(- t&e%t4!ie $e#*e%t+3 "! &,i*, 3+(t ei%e(ted i% (e*+#itie((ati(!a*t"# t" t,eC"33i((i"%e#- *"%(i(ti%) "!"%d( "# "t,e# eide%*e( "!det "! t,e G"e#%3e%t "!t,e P,ili$$i%e( "# it( $"liti*al(+dii(i"%( "#i%(t#+3e%talitie(- "# "!)"e#%3e%t4"&%ed "#*"%t#"lled *"#$"#ati"%( a%de%titie(- i%*l+di%) t,eCe%t#al ?a%' "! t,eP,ili$$i%e(- a%d de$"(ited

&it, t,e C"33i((i"%e#- a%dt,e #e3ai%i%) (ee%t4!ie$e# *e%t+3 i% (+*, "t,e#(e*+#itie( a( 3a e all"&eda%d $e#3itted t,eC"33i((i"%e#- &,i*,(e*+#itie( (,all at all ti3e(e 3ai%tai%ed !#ee !#"3 a%lie% "# e%*+3#a%*eP#"ided- T,at #ei%(+#e#(al#ead d"i%) +(i%e(( a(

(+*, i% t,e P,ili$$i%e( (,all*"3$l &it, t,e #e9+i#e3e%t"! t,i( (e*ti"% i%*#ea(i%)t,ei# #e($e*tie *a$ital a(,e#ei% $#"ided %"t late#t,a% De*e3e# t,i#t4"%e-%i%etee% ,+%d#ed ei),tP#"ided- F+#t,e#- T,at t,e$#"i(i"%( "! t,i( *,a$te#a$$li*ale t" i%(+#a%*e

*"3$a%ie( (,all (" !a# a($#a*ti*ale e li'e&i(e

(urisdiction and superision ofthe Commissioner.

Section 2). Any partnership,association, or corporation

authori'ed to transact solelyreinsurance business 3+(t ,aea *a$italiati"% "! at lea(tT,#ee illi"% $e("(/ P -000-000-000.00 $aid i%*a(, "! &,i*, at lea(t !i!t$e#*e%t /@0 i( $aid4+$ a%dt,e #e3ai%i%) $"#ti"%t,e#e"! i( *"%t#i+ted(+#$l+(- &,i*, i% %" *a(e(,all e le(( t,a% F"+#,+%d#ed 3illi"% $e("(/ P :00-000-000.00 "# (+*,*a$italiati"% a( 3a edete#3i%ed t,e Se*#eta#"! Fi%a%*e- +$"% t,e#e*"33e%dati"% "! t,eC"33i((i"%e#BProvided-T,at t&e%t4!ie $e#*e%t/2@ "! t,e $aid4+$ *a$ital3+(t e i%e(ted i%

(e*+#itie( (ati(!a*t"# t" t,eC"33i((i"%e# *"%(i(ti%) "!"%d( "# "t,e# i%(t#+3e%t("! det "! t,e G"e#%3e%t "!t,e P,ili$$i%e( "# it( $"liti*al(+dii(i"%( "#i%(t#+3e%talitie(- "# "!)"e#%3e%t4"&%ed "#4*"%t#"lled *"#$"#ati"%( a%de%titie(- i%*l+di%) t,e?a%)'" Se%t#al %) Pili$i%a(-

a%d de$"(ited &it, t,eC"33i((i"%e#- a%d t,e#e3ai%i%) (ee%t4!ie$e#*e%t /7@ i% (+*, "t,e#(e*+#itie( a( 3a e all"&eda%d $e#3itted t,eC"33i((i"%e#- &,i*,(e*+#itie( (,all at all ti3e(e 3ai%tai%ed !#ee !#"3 a%lie% "#

e%*+3#a%*eB Provided,further, T,at t,e a!"#e(aid

8/13/2019 sec 273 - 322

6/33

a$$li*ale t" $#"!e((i"%al#ei%(+#e#(. /A( a3e%ded P#e(ide%tial De*#ee N".1:@@

*a$ital #e9+i#e3e%t i(&it,"+t $#e>+di*e t" "t,e##e9+i#e3e%t( t" e i3$"(ed+%de# a% #i('4a(ed *a$ital3et,"d t,at 3a e ad"$ted

t,eC"33i((i"%e#B Provided,finally,T,at t,e $#"i(i"%( "!t,i( *,a$te# a$$li*ale t"i%(+#a%*e *"3$a%ie( (,all a(!a# a( $#a*ti*ale e li'e&i(ea$$li*ale t" $#"!e((i"%al#ei%(+#e#(.

Title 20HOLDING COMPANIES

Section 2)2. As used in this title,the following terms shall haethe respectie meaningshereinafter set forth unless thecontext shall otherwise re6uire8

/a1 4Person4 means anindiidual, partnership,firm, association,corporation, trust, any

similar entity or anycombination of theforegoing acting in concert9

/b1 4Control4, including theterms 4controlling4,4controlled by4 and 4undercommon control with4,means the possessiondirectly or indirectly of thepower to direct or causethe direction of themanagement and policiesof a person, whetherthrough the ownership ofoting securities by acontract other than acommercial contract forgoods or non:managementserices or otherwise.Sub(ect to (e*ti"% t&"

,+%d#ed ei),t4!"+#,control shall be presumed

Section 20. As used in this title,the following terms shall haethe respectie meaningshereinafter set forth unless thecontext shall otherwise re6uire8

4/a1 Personmeans anindiidual, partnership,firm, association,corporation, trust, any

similar entity or anycombination of theforegoing acting in concert.

4/b1 Control, including theterms controlling,controlled byand undercommon controlwith,means the possessiondirectly or indirectly of thepower to direct or causethe direction of themanagement and policiesof a person, whetherthrough the ownership ofoting securities by acontract other than acommercial contract forgoods or non:managementserices or otherwise.Sub(ect to Se*ti"% 2;2,

control shall be presumedto exist if any person

8/13/2019 sec 273 - 322

7/33

to exist if any persondirectly or indirectly owns,controls or holds with thepower to ote forty percentum or more of the

oting securities of anyother person9 Proided,#hat no person shall bedeemed to control anotherperson solely by reason ofhis being an officer ordirector of such otherperson9

/c1 4;olding company4means any person whodirectly or indirectlycontrols any authori'edinsurer9

/d1 4Controlled insurer4means an authori'edinsurer controlled directlyor indirectly by a holdingcompany9

/e1 4Controlled person4means any person, otherthan a controlled insurer,who is controlled directlyor indirectly by a holdingcompany9

/f1 4;olding companysystem4 means a holdingcompany together with itscontrolled insurers and

controlled persons.

Section 2)3. otwithstandingparagraph /b1 of (e*ti"% t&",+%d#ed ei),t4t&", theCommissioner may determineafter notice and opportunity tobe heard, that a personexercises directly or indirectlyeither alone or pursuant to an

agreement with one or moreother persons such a controlling

directly or indirectly owns,controls or holds with thepower to ote forty percent/"0

8/13/2019 sec 273 - 322

8/33

influence oer the managementor policies of an authori'edinsurer as to ma!e it necessaryor appropriate in the publicinterest or for the protection of

policyholders or stoc!holders ofthe insurer that the person bedeemed to control the insurer.

Section 2)". #he Commissionermay determine upon applicationthat any person, either alone orpursuant to agreement with oneor more other persons, does notor will not upon the ta!ing ofsome proposed action controlanother person. #he filing of anapplication hereunder in goodfaith by any person shall relieethe applicant from any obligationor liability imposed by this titlewith respect to the sub(ect of theapplication, except as containedin (e*ti"% t&" ,+%d#ed%i%et4!"+#, until theCommissioner has acted upon

the application. =ithin thirtydays or such further period as hemay prescribe, theCommissioner may prospectielyreo!e or modify hisdetermination, after notice andopportunity to be heard,wheneer in his (udgmentreocation or modification isconsistent with his title.

Section 2)$. otwithstandingany other proisions of this title,the following shall not bedeemed holding companies8

/a1 authori'ed insurers orreinsurers or theirsubsidiaries9/b1 the >oernment of thePhilippines, or any politicalsubdiision, agency or

instrumentality thereof, orany corporation which is

management or policies of anauthori'ed insurer as to ma!e itnecessary or appropriate in thepublic interest or for theprotection of policyholders or

stoc!holders of the insurer thatthe person be deemed to controlthe insurer.

Section 22. #he Commissionermay determine upon applicationthat any person, either alone orpursuant to agreement with oneor more other persons, does notor will not upon the ta!ing ofsome proposed action controlanother person. #he filing of anapplication hereunder in goodfaith by any person shall relieethe applicant from any obligationor liability imposed by this titlewith respect to the sub(ect of theapplication, except as containedin Se*ti"% 02, until theCommissioner has acted upon

the application. =ithin thirty /301days or such further period as hemay prescribe, the Commissionermay prospectiely reo!e ormodify his determination, afternotice and opportunity to beheard, wheneer in his (udgment,reocation or modification isconsistent with this title.

Section 23. otwithstandingany other proisions of this title,the following shall not bedeemed holding companies8

4/a1 Authori'ed insurers orreinsurers or theirsubsidiaries9 and4/b1 #he >oernment of thePhilippines, or any politicalsubdiision, agency or

instrumentality thereof, orany corporation which is

8/13/2019 sec 273 - 322

9/33

wholly owned directly orindirectly by one or moreof the foregoing.

#he Commissioner mayconditionally or unconditionallyexempt any specified person orclass of persons from any of theobligations or liabilities imposedunder this title, if and to theextent he finds the exemptionnecessary to appropriate in thepublic interest or not aderse tothe interests of policyholders orstoc!holders and consistent withthe purposes of this title.

Section 2)+. /1%ery personwho on the date this Code ta!eseffect is a controlled insurer andeery person who thereafterbecomes a controlled insurer,shall, within sixty daysthereafter, or within thirty daysafter becoming a controlled

insurer, whicheer is later,register with the Commissioner.Such registration shall beamended within thirty daysfollowing any change in theidentity of its holding company.#he Commissioner may grantone or more reasonableextensions of the time toregister.

/2%ery registrant shall furnishthe Commissioner with thefollowing information concerningits holding company8

/a1 a copy of its charter orarticles of incorporation and itsby:laws,/b1 the identities of its principalshareholders, officers, directors

and controlled persons, and/c1 information as to its capital

wholly owned directly orindirectly by one or moreof the foregoing.

#he Commissioner may

conditionally or unconditionallyexempt any specified person orclass of persons from any of theobligations or liabilities imposedunder this title, if and to theextent he finds the exemptionnecessary or appropriate in thepublic interest or not aderse tothe interests of policyholders orstoc!holders and consistent withthe purposes of this title.

Section 2". /a%ery personwho on the date this Code ta!eseffect is a controlled insurer andeery person who thereafterbecomes a controlled insurer,shall, within sixty /+01 daysthereafter, or within thirty /301days after becoming a controlledinsurer, whicheer is later,

register with the Commissioner.Such registration shall beamended within thirty /301 daysfollowing any change in theidentity of its holding company.#he Commissioner may grantone or more reasonableextensions of the time toregister.

4/ %ery registrant shall

furnish the Commissioner withthe following informationconcerning its holding company8

4/*1 A copy of its charter orarticles of incorporationand its bylaws94/21 #he identities of itsprincipal shareholders,officers, directors andcontrolled persons9 and

4/31 &nformation as to itscapital structure and

8/13/2019 sec 273 - 322

10/33

structure and financial condition,and a description of its principalbusiness actiities.

Section 2)7. %ery controlledinsurer shall file with theCommissioner such reports ormaterial as he may direct for thepurpose of disclosing informationconcerning the operations ofpersons within the holdingcompany system which maymaterially affect the operations,management or financialcondition of the insurer.

Section 2)). %ery holdingcompany and eery controlledperson within a holding companysystem shall be sub(ect toexamination by order of theCommissioner if he has cause tobeliee that the operations ofsuch persons may materiallyaffect the operations,

management or financialcondition of any controlledinsurer with the system and thathe is unable to obtain releantinformation from such controlledinsurer. #he grounds relied uponby the Commissioner for suchexamination shall be stated inhis order, which order shall besub(ect to (udicial reiew only atthe instance of the person

sought to be examined. Suchexamination shall be confined tomatters specified in the order.#he cost of such examinationshall be assessed against theperson examined and no portionthereof shall thereafter bereimbursed to it directly orindirectly by the controlledinsurer.

Section 2). #he Commissioner

financial condition, and adescription of its principalbusiness actiities.

Section 2$. %ery controlled

insurer shall file with theCommissioner such reports ormaterial as he may direct for thepurpose of disclosing informationconcerning the operations ofpersons within the holdingcompany system which maymaterially affect the operations,management or financialcondition of the insurer.

Section 2+. %ery holdingcompany and eery controlledperson within a holding companysystem shall be sub(ect toexamination by order of theCommissioner if he has cause tobeliee that the operations ofsuch persons may materiallyaffect the operations,management or financial

condition of any controlledinsurer with the system and thathe is unable to obtain releantinformation from such controlledinsurer. #he grounds relied uponby the Commissioner for suchexamination shall be stated inhis order, which order shall besub(ect to (udicial reiew only atthe instance of the personsought to be examined. Such

examination shall be confined tomatters specified in the order.#he cost of such examinationshall be assessed against theperson examined and no portionthereof shall thereafter bereimbursed to it directly orindirectly by the controlledinsurer.

Section 27. #he Commissionershall !eep the contents of each

8/13/2019 sec 273 - 322

11/33

shall !eep the contents of eachreport made pursuant to this titleand any information obtained byhim in connection therewithconfidential and shall not ma!e

the same public without the priorwritten consent of the controlledinsurer to which it pertainsunless the Commissioner afternotice and an opportunity to beheard shall determine that theinterests of policyholders,stoc!holders or the public will besered by the publicationthereof. &n any action orproceeding by the Commissioneragainst the person examined orany other person within thesame holding company system areport of such examinationpublished by him shall beadmissible as eidence of thefacts stated therein.

Section 20. #ransactions withina holding company system to

which a controlled insurer is aparty shall be sub(ect to thefollowing8

/a1 #he terms shall be fairand e6uitable9

/b1 charges or fees forserices performed shallbe reasonable9

/c1 expenses incurred andpayments receied shall beallocated to the insurer onan e6uitable basis inconformity with customaryinsurance accountingpractices consistentlyapplied.

#he boo!s, accounts and records

of each party to all suchtransactions shall be maintained

report made pursuant to this titleand any information obtained byhim in connection therewithconfidential and shall not ma!ethe same public without the prior

written consent of the controlledinsurer to which it pertainsunless the Commissioner afternotice and an opportunity to beheard shall determine that theinterests of policyholders,stoc!holders or the public will besered by the publicationthereof. &n any action orproceeding by the Commissioneragainst the person examined orany other person within thesame holding company system areport of such examinationpublished by him shall beadmissible as eidence of thefacts stated therein.

Section 2). #ransactions withina holding company system towhich a controlled insurer is a

party shall be sub(ect to thefollowing8

4/a1 #he terms shall be fairand e6uitable9

4/b1 Charges or fees forserices performed shall bereasonable9

4/c1 %xpenses incurred andpayments receied shall be

allocated to the insurer onan e6uitable basis inconformity with customaryinsurance accountingpractices consistentlyapplied.

4#he boo!s, accounts andrecords of each party to all suchtransactions shall be maintained

as to clearly and accuratelydisclose the nature and details of

8/13/2019 sec 273 - 322

12/33

as to clearly and accuratelydisclose the nature and details ofthe transactions including suchaccounting information as isnecessary to support the

reasonableness of the charges orfees to the respectie parties.

Section 2*. #he prior writtenapproal of the Commissionershall be re6uired for thefollowing transactions between acontrolled insurer and anyperson in its holding companysystem8 sales, purchases,exchanges, loans or extensionsof credit, or inestments,inoling fie per centum ormore of the insurers admittedassets as of the thirty:first day of?ecember next preceding.

Section 22. #he followingtransactions between acontrolled insurer and anyperson in its holding company

system may not be entered intounless the insurer has notifiedthe Commissioner in writing ofits intention to enter into anysuch transaction at least thirtydays prior thereto, or suchshorter period as he may permit,and he has not disapproed itwithin such period8

/a1 sales, purchases,

exchanges, loans orextensions of credit, orinestments, inolingmore than one:half of oneper centum but less thanfie per centum of theinsurers admitted assetsas of the thirty:first day of?ecember next preceding9

/b1 reinsurance treaties oragreements9

the transactions including suchaccounting information as isnecessary to support thereasonableness of the charges orfees to the respectie parties.

Section 2. #he prior writtenapproal of the Commissionershall be re6uired for thefollowing transactions between acontrolled insurer and anyperson in its holding companysystem8 sales, purchases,exchanges, loans or extensionsof credit, or inestments,inoling fie percent /$

8/13/2019 sec 273 - 322

13/33

/c1 rendering of serices ona regular or systematicbasis9 or

/d1 any materialtransaction, specified byregulation, which theCommissioner determinesmay adersely affect theinterest of the insurerspolicyholders orstoc!holders or of thepublic.

othing herein contained shallbe deemed to authori'e orpermit any transaction which, inthe case of a non:controlledinsurer, would be otherwisecontrary to law.

Section 23. #he Commissioner,in reiewing transactionspursuant to (e*ti"%( t&",+%d#ed %i%et4"%e a%d t&"

,+%d#ed %i%et4t&", shallconsider whether thetransactions comply with thestandard set forth in (e*ti"%t&" ,+%d#ed %i%etandwhether they may aderselyaffect the interests ofpolicyholders. #his section shallnot apply to transactions sub(ectto other sections of this Codewhich impose notice or approal

re6uirements greater than thoseprescribed by this title.

Section 2". /*1 o person, otherthan an authori'ed insurer, shallac6uire control of any domesticinsurer, whether by purchase ofits securities or otherwise,except

/a1 after twenty days writtennotice to its insurer or such

on a regular or systematicbasis9 or

4/d1 Any materialtransaction, specified by

regulation, which theCommissioner determinesmay adersely affect theinterest of the insurerspolicyholders orstoc!holders or of thepublic.

4othing herein contained shallbe deemed to authori'e orpermit any transaction which, inthe case of a non:controlledinsurer, would be otherwisecontrary to law.

Section 30*. #he Commissioner,in reiewing transactionspursuant to Se*ti"%( 2;; a%d00, shall consider whether thetransactions comply with thestandard set forth in Se*ti"%

2;8and whether they mayadersely affect the interests ofpolicyholders. #his section shallnot apply to transactions sub(ectto other sections of this Codewhich impose notice or approalre6uirements greater than thoseprescribed by this title.

Section 302. /a1 o person, otherthan an authori'ed insurer, shallac6uire control of any domesticinsurer, whether by purchase ofits securities or otherwise,except8

4/*1 After twenty /201 dayswritten notice to its insureror such shorter period as

the Commissioner maypermit, of its intention to

8/13/2019 sec 273 - 322

14/33

shorter period as theCommissioner may permit, of itsintention to ac6uire control, and

/b1 with the prior writtenapproal of the Commissioner.

/21 #he Commissioner shalldisapproe the ac6uisition ofcontrol of a domestic insurer ifhe determines, after notice andan opportunity to be heard, thatsuch action is reasonablynecessary to protect the interestof the people of this country. #hefollowing shall be the onlyfactors to be considered by himin reaching the foregoingdetermination8

/a1 the financial conditionof the ac6uiring person "#a%dthe insurer9

/b1 the trustworthiness ofthe ac6uiring person orany of its officers ordirectors9

/c1 a plan for the properand effectie conduct ofthe insurers operations9

/d1 the source of the fundsor assets for the

ac6uisition9

/e1 the fairness of anyexchange of stoc!, assets,cash or other considerationfor the stoc! or assets tobe receied9

/f1 whether the effect ofthe ac6uisition may be

substantially to lessencompetition in any line of

ac6uire control9 and

4/21 =ith the prior writtenapproal of theCommissioner.

4/b1 #he Commissioner shalldisapproe the ac6uisition ofcontrol of a domestic insurer ifhe determines, after notice andan opportunity to be heard, thatsuch action is reasonablynecessary to protect the interestof the people of this country. #hefollowing shall be the only factorsto be considered by him inreaching the foregoingdetermination8

4/*1 #he financial conditionof the ac6uiring persona%dthe insurer9

4/21 #he trustworthiness ofthe ac6uiring person or anyof its officers or directors9

4/31 A plan for the properand effectie conduct ofthe insurers operations9

4/"1 #he source of thefunds or assets for theac6uisition9

4/$1 #he fairness of anyexchange of stoc!, assets,

cash or other considerationfor the stoc! or assets tobe receied9

4/+1 =hether the effect ofthe ac6uisition may besubstantially to lessencompetition in any line ofcommerce in insurance orto tend to create a

monopoly therein9 and

8/13/2019 sec 273 - 322

15/33

commerce in insurance orto tend to create amonopoly therein9 and

/g1 whether the ac6uisition

is li!ely to be ha'ardous orpre(udicial to the insurerspolicyholders orstoc!holders.

/31 #he following conditionsaffecting any controlled insurer,regardless of when such controlhas been ac6uired, are iolationsof this title8

/a1 the controlling personor any of its officers ordirectors haedemonstrateduntrustworthiness9 and

/b1 the effect of retentionof control may besubstantially to lessencompetition in any line of

commerce in insurance inthis country or to tend tocreate a monopoly therein.&f, after notice and anopportunity to be heard,the Commissionerdetermines that any of theforegoing iolations exists,he shall reduce his findingsto writing and shall issuean order based thereon

and cause the same to besered upon the insurerand upon all personsaffected thereby directingany person found to be iniolation thereof to ta!eappropriate action to curesuch iolation. -pon thefailure of any such personto comply with such order,

(e*ti"% t&" ,+%d#ed%i%et4ei),tshall

4/71 =hether theac6uisition is li!ely to beha'ardous or pre(udicial tothe insurers policyholdersor stoc!holders.

/c1 #he following conditionsaffecting any controlled insurer,regardless of when such controlhas been ac6uired, are iolationsof this title8

4/*1 #he controlling personor any of its officers ordirectors haedemonstrateduntrustworthiness9 and

4/21 #he effect of retentionof control may besubstantially to lessencompetition in any line ofcommerce in insurance inthis country or to tend tocreate a monopoly therein.&f, after notice and an

opportunity to be heard,the Commissionerdetermines that any of theforegoing iolations exists,he shall reduce his findingsto writing and shall issuean order based thereonand cause the same to besered upon the insurerand upon all personsaffected thereby directing

any person found to be iniolation thereof to ta!eappropriate action to curesuch iolation. -pon thefailure of any such personto comply with such order,Se*ti"% 06shall becomeapplicable.

4/d1 #he Commissioner mayre6uire the submission of such

8/13/2019 sec 273 - 322

16/33

become applicable.

/"1 #he Commissioner mayre6uire the submission of suchinformation as he deems

necessary to determine whetherany ac6uisition or retention ofcontrol complies with this titleand may re6uire, as a conditionof approal of such ac6uisition orretention of control, that all orany portion of such informationbe disclosed to the insurersstoc!holders.

/$1 -nless sub(ect to registrationunder (e*ti"% t&" ,+%d#edei),t4(i=or unless ac6uisitionof its control is sub(ect toparagraphs one and two hereof,eery authori'ed insurer shall,"% "# e!"#e t,e !i#(t da "!

8/13/2019 sec 273 - 322

17/33

an authori'ed insurer fromhaing or sharing a commonmanagement or cooperatie or(oint use of personnel, propertyor serices with one or more

other persons underarrangements meeting thestandards of (e*ti"% t&",+%d#ed %i%et.

Section 2+. #o the extent thatany information or material is setforth in forms or other matter onfile with any goernment agencyor in a registration form filedwith the Commissioner byanother person within the sameholding company system, thecontrolled insurer may complywith the registration or reportingre6uirements of this title byreferring in its registration formor report to such other filedmatter and attaching a copythereof certified by the insureras a true and complete copy, to

such registration form or reportor, if such other filed matter is onfile with the Commissioner,incorporating such matter byreference.

Section 27. o holdingcompany or controlled personshall directly or indirectly orthrough another person do orcause to be done for or in behalf

of the controlled insurer any actintended to affect the insuranceoperations of the insurer which,if done by the insurer, wouldiolate any proision of thisCode.

Section 2). &n addition to anyother penalty proided by law,the Commissioner may, upon the

willful failure of any personwithin a holding company system

with one or more other personsunder arrangements meeting thestandards of Se*ti"% 2;8.

Section 30". #o the extent that

any information or material is setforth in forms or other matter onfile with any goernment agencyor in a registration form filed withthe Commissioner by anotherperson within the same holdingcompany system, the controlledinsurer may comply with theregistration or reportingre6uirements of this title byreferring in its registration formor report to such other filedmatter and attaching a copythereof certified by the insurer asa true and complete copy, tosuch registration form or reportor, if such other filed matter is onfile with the Commissioner,incorporating such matter byreference.

Section 30$. o holding companyor controlled person shall directlyor indirectly or through anotherperson do or cause to be donefor or in behalf of the controlledinsurer any act intended to affectthe insurance operations of theinsurer which, if done by theinsurer, would iolate anyproision of this Code.

4Section 30+. &n addition to anyother penalty proided by law,the Commissioner may, upon thewillful failure of any personwithin a holding company systemto comply with this title or anyregulation or order promulgatedhereunder8

4/a1 Proceed under #itle *"

or #itle *$, Chapter &&& ofthis Code with respect to

8/13/2019 sec 273 - 322

18/33

to comply with this title or anyregulation or order promulgatedhereunder8

/a1 proceed under title

fourteen or title fifteen,Chapter &&&, of this Codewith respect to insurerwithin the holdingcompany system9 or

/b1 reo!e or refuse torenew the authority to dobusiness in this country ofan insurer within theholding company systemor refuse to issue suchauthority to any otherinsurer in the system9 or

/c1 direct that, in additionto any other penaltyproided by law, suchperson forfeit to the peopleof this country a sum %"te=*eedi%) !ie ,+%d#ed

$e("(for a first iolationand t&" t,"+(a%d !ie,+%d#ed $e("(for anysubse6uent iolation. Anadditional sum %"te=*eedi%) t&" t,"+(a%d!ie ,+%d#ed $e("(shallbe imposed for each monthduring which any suchiolation shall continue.

insurer within the holdingcompany system9 or

4/b1 eo!e or refuse torenew the authority to do

business in this country ofan insurer within theholding company systemor refuse to issue suchauthority to any otherinsurer in the system9 or

4/c1 ?irect that, in additionto any other penaltyproided by law, suchperson forfeit to the peopleof this country a sum %"tle(( t,a% Fie t,"+(a%d$e("( / P @-000.00 for afirst iolation and T&e%t4!ie t,"+(a%d $e("(/ P 2@-000.00 for anysubse6uent iolation. Anadditional sum %"t le((t,a% T&e%t4!iet,"+(a%d $e("(

/ P 2@-000.00 shall beimposed for each monthduring which any suchiolation shall continue.

C,a$te# I

SALES AGENCIES AND TECHNICAL SERICES44444444444444444444444444444444444444444444444444444444444444444444444444444444

Title 1INSURANCE AGENTS AND INSURANCE ?ROERS

Section 2. o insurancecompany doing business in thePhilippines, nor any agentthereof, shall pay anycommission or othercompensation to any person for

serices in obtaining insurance,unless such person shall hae

Section 307. o insurancecompany doing business in thePhilippines, nor any agentthereof, shall pay anycommission or othercompensation to any person for

serices in obtaining insurance,unless such person shall hae

8/13/2019 sec 273 - 322

19/33

first procured from theCommissioner a license to act asan insurance agent of suchcompany or as an insurancebro!er as hereinafter proided.

o person shall act as aninsurance agent or as aninsurance bro!er in thesolicitation or procurement ofapplications for insurance, orreceie for serices in obtaininginsurance, any commission orother compensation from anyinsurance company doingbusiness in the Philippines, orany agent thereof, without firstprocuring a license to act fromthe Commissioner, which mustbe renewed a%%+all "% t,e!i#(t da "!

8/13/2019 sec 273 - 322

20/33

Section 300. Any person who forcompensation solicits or obtainsinsurance on behalf of anyinsurance company or transmitsfor a person other than himselfan application for a policy orcontract of insurance to or fromsuch company or offers orassumes to act in the negotiatingof such insurance shall be aninsurance agent within the intentof this section and shall therebybecome liable to all the duties,re6uirements, liabilities and

penalties to which an insuranceagent is sub(ect.

Section 30*. Any person who for

any compensation, commissionor other thing of alue acts or

#e$#e(e%ted (+*, a)e%t(-a%d i% t,e *a(e "! i%(+#a%*e#"'e#(- +$"% t,e a$$li*ati"%"! t,e (aid #"'e#(-t,e3(ele(.

Section 30).T,e $#"i(i"%( "!Se*ti"%( 07 a%d 0; (,alla$$l t" a% e3$l"ee &,"(,all e e%)a)ed t" (elli%(+#a%*e $#"d+*t( a%i%(+#a%*e *"3$a%.

Section 30. Any person who forcompensation solicits or obtainsinsurance on behalf of anyinsurance company or transmitsfor a person other than himselfan application for a policy orcontract of insurance to or fromsuch company or offers orassumes to act in the negotiatingof such insurance shall be aninsurance agent within the intentof this section and shall therebybecome liable to all the duties,

re6uirements, liabilities andpenalties to which an insuranceagent is sub(ect.

A% i%(+#a%*e a)e%t i( a%i%de$e%de%t *"%t#a*t"# a%d%"t a% e3$l"ee "! t,e*"3$a% #e$#e(e%ted.I%(+#a%*e a)e%t i%*l+de( a%a)e%* leade#- a)e%*3a%a)e#- "# t,ei# e9+iale%t.

5Si%*e t,e i%(+#a%*e i%d+(t#i( i3+ed &it, $+li*i%te#e(t- t,e i%(+#a%*e*"3$a%ie( +$"% a$$#"al "!t,e C"33i((i"%e# 3ae=e#*i(e &ide latit+de i%(+$e#i(i%) t,e a*tiitie( "!t,ei# i%(+#a%*e a)e%t( t"e%(+#e t,e $#"te*ti"% "! t,e

i%(+#i%) $+li*.

8/13/2019 sec 273 - 322

21/33

aids in any manner in soliciting,negotiating or procuring thema!ing of any insurance contractor in placing ris! or ta!ing outinsurance, on behalf of an

insured other than himself, shallbe an insurance bro!er withinthe intent of this Code, and shallthereby become liable to all theduties, re6uirements, liabilitiesand penalties to which aninsurance bro!er is sub(ect.

Section 302. %ery applicant foran insurance bro!ers licenseshall file with the application andshall thereafter maintain in forcewhile so licensed, a bond in faorof the people of the epublic ofthe Philippines executed by acompany authori'ed to becomesurety upon officialrecogni'ances, stipulations,bonds and underta!ings. #hebond shall be in such amount asmay be fixed by the

Commissioner, but in no casele(( t,a% "%e ,+%d#edt,"+(a%d $e("(, and shall beconditioned upon full accountingand due payment to the personentitled thereto of funds cominginto the bro!ers possessionthrough insurance transactionsunder license. #he bond shallremain in force until released bythe Commissioner, or until

cancelled by the surety. =ithoutpre(udice to any liabilitypreiously incurred thereunder,the surety may cancel the bondon thirty days adance writtennotice to both the bro!er and theCommissioner.

-pon approal of the application,

the applicant must also file twoerrors and omissions

Section 3*0. Any person who forany compensation, commissionor other thing of alue acts oraids in any manner in soliciting,negotiating or procuring the

ma!ing of any insurance contractor in placing ris! or ta!ing outinsurance, on behalf of aninsured other than himself, shallbe an insurance bro!er withinthe intent of this Code, and shallthereby become liable to all theduties, re6uirements, liabilitiesand penalties to which aninsurance bro!er is sub(ect.

Section 3**. %ery applicant foran insurance bro!ers licenseshall file with the application andshall thereafter maintain in forcewhile so licensed, a bond in faorof the people of the epublic ofthe Philippines executed by acompany authori'ed to becomesurety upon officialrecogni'ances, stipulations,

bonds and underta!ings. #hebond shall be in such amount asmay be fixed by theCommissioner, but in no casele(( t,a% Fie ,+%d#edt,"+(a%d $e("(/ P @00-000.00, and shall beconditioned upon full accountingand due payment to the personentitled thereto of funds cominginto the bro!ers possession

through insurance transactionsunder license. #he bond shallremain in force until released bythe Commissioner, or untilcancelled by the surety. =ithoutpre(udice to any liabilitypreiously incurred thereunder,the surety may cancel the bondon thirty /301 days adancewritten notice to both the bro!er

and the Commissioner.

8/13/2019 sec 273 - 322

22/33

/professional liability orprofessional indemnity1 policiesissued separately by twoinsurance companies authori'edto do business in the Philippines,

satisfactory to the Commissionerto indemnify the applicantagainst any claim or claims forbreach of duty as insurancebro!er which may be madeagainst him by reason of anynegligent act, error or omission,wheneer or whereercommitted or alleged to haebeen committed, on the part ofthe applicant or any person whohas been, is now, or mayhereafter during the subsistenceof the policies be employed bythe said applicant in his capacityas insurance bro!er, proidedthat the filing of any claim orclaims under one of such policiesshall preclude the filing of thesaid claim or claims under theother policy. #he said policies

shall be in such amounts as maybe prescribed by the I%(+#a%*eCommissioner, depending uponthe si'e or amount of the bro!ingbusiness of the applicant, but inno case shall the amount of eachof such policies be less than fiehundred thousand pesos. /Asamended by Presidential ?ecreeo. *"$$1

Section 303. #he Commissionershall, in order to determine thecompetence of eery applicantto hae the !ind of licenseapplied for, re6uire suchapplicant to submit to a writtenexamination and to pass thesame to the satisfaction of theCommissioner. S+*,e=a3i%ati"% (,all e ,eld at

(+*, ti3e( a%d $la*e( a( t,eC"33i((i"%e# (,all !#"3

-pon approal of the application,the applicant must also file two/21 errors and omissions/professional liability orprofessional indemnity1 policies

issued separately by two /21insurance companies authori'edto do business in the Philippines,satisfactory to the Commissionerto indemnify the applicantagainst any claim or claims forbreach of duty as insurancebro!er which may be madeagainst him by reason of anynegligent act, error or omission,wheneer or whereercommitted or alleged to haebeen committed, on the part ofthe applicant or any person whohas been, is now, or mayhereafter during the subsistenceof the policies be employed bythe said applicant in his capacityas insurance bro!er8 Provided,#hat the filing of any claim orclaims under one of such policies

shall preclude the filing of thesaid claim or claims under theother policy. #he said policiesshall be in such amounts as maybe prescribed by theCommissioner, depending uponthe si'e or amount of the bro!ingbusiness of the applicant, but inno case shall the amount of eachof such policies be less than Biehundred thousand pesos

/P$00,000.001.

Section 3*2. #he Commissionershall, in order to determine thecompetence of eery applicant tohae the !ind of license appliedfor, re6uire such applicant tosubmit to a written examinationand to pass the same to the

satisfaction of the Commissioner.T,e C"33i((i"%e# 3a

8/13/2019 sec 273 - 322

23/33

ti3e t" ti3e dete#3i%e.

Section 30". An applicant for thewritten examination mentioned

in the preceding section must beof good moral character andmust not hae been conicted ofany crime inoling moralturpitude. ;e must satisfactorilyshow to the Commissioner thathe has been trained in the !indof insurance contemplated in thelicense applied for. Suchexamination may be waied if itis shown to the satisfaction ofthe Commissioner that theapplicant has undergoneextensie education andortraining in insurance.

Section 30$. An application forthe issuance or renewal of alicense to act as an insuranceagent or insurance bro!er may

be refused, or such license, ifalready issued or renewed, shallbe suspended or reo!ed if theCommissioner finds that theapplicant for, or holder of, suchlicense8

/a1 has willfully iolatedany proision of this Code9or

/b1 has intentionally madea material misstatement inthe application to 6ualifyfor such license9 or

/c1 has obtained orattempted to obtain alicense by fraud ormisrepresentation9 or

/d1 has been guilty offraudulent or dishonest

dele)ate "# a+t,"#ie t,ead3i%i(t#ati"% "! t,ee=a3i%ati"% t" a%i%de$e%de%t "#)a%iati"%-(+>e*t t" (+*, *"%diti"%(

t,at t,e C"33i((i"%e# 3a$#"ide.Section 3*3. An applicant for thewritten examination mentionedin the preceding section must beof good moral character andmust not hae been conicted ofany crime inoling moralturpitude. ;e must satisfactorilyshow to the Commissioner thathe has been trained in the !indof insurance contemplated in thelicense applied for. Suchexamination may be waied if itis shown to the satisfaction ofthe Commissioner that theapplicant has undergoneextensie education andortraining in insurance.

Section 3*". An application forthe issuance or renewal of alicense to act as an insuranceagent or insurance bro!er maybe refused, or such license, ifalready issued or renewed, shallbe suspended or reo!ed if theCommissioner finds that theapplicant for, or holder of, suchlicense8

4/a1 ;as willfully iolatedany proision of this Code9or

4/b1 ;as intentionally madea material misstatement inthe application to 6ualifyfor such license9 or

4/c1 ;as obtained or

attempted to obtain alicense by fraud or

8/13/2019 sec 273 - 322

24/33

practices9 or

/e1 has misappropriated orconerted to his own useor illegally withheld

moneys re6uired to beheld in a fiduciarycapacity9/f1 has not demonstratedtrustworthiness andcompetence to transactbusiness as an insuranceagent or insurance bro!erin such manner as tosafeguard the public9 or

/g1 has materiallymisrepresented the termsand conditions of policiesor contracts of insurancewhich he see!s to sell orhas sold9 or

/h1 has failed to pass thewritten examinationprescribed, if not otherwise

exempt from ta!ing thesame.

&n addition to the foregoingcauses, no license to act asinsurance agent or insurancebro!er shall be renewed if theholder thereof has not beenactiely engaged as such agentor bro!er in accordance withsuch rules as the Commissioner

may prescribe. /As amended byPresidential ?ecree o. *)*"1

Section 30+. #he premium, orany portion thereof, which aninsurance agent or insurancebro!er collects from an insuredand which is to be paid to aninsurance company because ofthe assumption of liability

through the issuance of policiesor contracts of insurance, shall

misrepresentation9 or

4/d1 ;as been guilty offraudulent or dishonestpractices9 or

4/e1 ;as misappropriatedor conerted to his ownuse or illegally withheldmoneys re6uired to be heldin a fiduciary capacity9 or4/f1 ;as not demonstratedtrustworthiness andcompetence to transactbusiness as an insuranceagent or insurance bro!erin such manner as tosafeguard the public9 or

4/g1 ;as materiallymisrepresented the termsand conditions of policiesor contracts of insurancewhich he see!s to sell orhas sold9 or

4/h1 ;as failed to pass thewritten examinationprescribed, if not otherwiseexempt from ta!ing thesame.

4&n addition to the foregoingcauses, no license to act asinsurance agent or insurancebro!er shall be renewed if theholder thereof has not been

actiely engaged as such agentor bro!er in accordance withsuch rules as the Commissionermay prescribe.

Section 3*$. #he premium, orany portion thereof, which aninsurance agent or insurance

bro!er collects from an insuredand which is to be paid to an

8/13/2019 sec 273 - 322

25/33

be held by the agent or bro!er ina fiduciary capacity and shall notbe misappropriated or conertedto his own use or illegallywithheld by the agent or bro!er.

Any insurance company whichdeliers to an insurance agent orinsurance bro!er a policy orcontract of insurance shall bedeemed to hae authori'ed suchagent or bro!er to receie on itsbehalf payment of any premiumwhich is due on such policy orcontract of insurance at the timeof its issuance or deliery orwhich becomes due thereon.

Section 307. Any proision ofexisting laws to the contrarynotwithstanding, no person shall,within the Philippines, sell oroffer for sale a ariable contractor do or perform any act or thingin the sale, negotiation, ma!ing

or consummating of any ariablecontract other than for himselfunless such person shall hae aalid and current license fromthe Commissioner authori'ingsuch person to act as a ariablecontract agent. o such licenseshall be issued unless and untilthe Commissioner is satisfied,after examination that such

person is by training, !nowledge,ability and character 6ualified to

insurance company because ofthe assumption of liabilitythrough the issuance of policiesor contracts of insurance, shallbe held by the agent or bro!er in

a fiduciary capacity and shall notbe misappropriated or conertedto his own use or illegallywithheld by the agent or bro!er.

Any insurance company whichdeliers to an insurance agent orinsurance bro!er a policy orcontract of insurance shall bedeemed to hae authori'ed suchagent or bro!er to receie on itsbehalf payment of any premiumwhich is due on such policy orcontract of insurance at the timeof its issuance or deliery orwhich becomes due thereon.

I% "#de# t" e%(+#e !ait,!+l$e#!"#3a%*e t,ei%(+#a%*e a)e%t "# i%(+#a%*e#"'e# "! t,e(e !id+*ia#

#e($"%(iilitie(- t,eI%(+#a%*e C"33i((i"%e# (,all$#e(*#ie t,e 3i%i3+3 te#3(a%d *"%diti"%( "% (+*,3atte#( i% t,e (ta%da#da)e%* "# #"'e#( a)#ee3e%tet&ee% t,e a)e%t( a%d"#t,e #"'e# &it, t,e i%(+#a%*e*"3$a%ie(.

Section 3*+. Any proision of

existing laws to the contrarynotwithstanding, no person shall,within the Philippines, sell oroffer for sale a ariable contractor do or perform any act or thingin the sale, negotiation, ma!ingor consummating of any ariablecontract other than for himselfunless such person shall hae aalid and current license from

the Commissioner authori'ingsuch person to act as a ariable

8/13/2019 sec 273 - 322

26/33

act as such agent. Any suchlicense may be withdrawn andcancelled by the Commissionerafter notice and hearing, if heshall find that the holder thereof

does not then hae the6ualifications re6uired for theissuance of such license.

Section 30). &t shall be unlawfulfor any person, company orcorporation in the Philippines toact as general agent of anyinsurance company unless he isempowered by a written powerof attorney duly executed bysuch insurance company, andregistered with theCommissioner to receie notices,summons and legal processes forand in behalf of the insurancecompany concerned inconnection with actions or otherlegal proceedings against saidinsurance company. &t shall bethe duty of said general agent to

notify the Commissioner of hispost office address in thePhilippines, or any changethereof. otices, summons, orprocesses of any !ind sent byregistered mail to the lastregistered address of suchgeneral agent of the companyconcerned or to theCommissioner shall be sufficientserice and deemed as if sered

on the insurance company itself.

Section 30. %xcept as otherwiseproided by law or treaty, it shallbe unlawful for any person,partnership, association orcorporation in the Philippines, forhimself or itself, or for someother person, partnership,association or corporation, either

to procure, receie or forwardapplications of insurance in, or to

contract agent. o such licenseshall be issued unless and untilthe Commissioner is satisfied,after examination that suchperson is by training, !nowledge,

ability and character 6ualified toact as such agent. Any suchlicense may be withdrawn andcancelled by the Commissionerafter notice and hearing, if heshall find that the holder thereofdoes not then hae the6ualifications re6uired for theissuance of such license.

Section 3*7. &t shall be unlawfulfor any person, company orcorporation in the Philippines toact as general agent of anyinsurance company unless he isempowered by a written powerof attorney duly executed bysuch insurance company, andregistered with theCommissioner to receie notices,summons and legal processes for

and in behalf of the insurancecompany concerned inconnection with actions or otherlegal proceedings against saidinsurance company. &t shall bethe duty of said general agent tonotify the Commissioner of hispost office address in thePhilippines, or any changethereof. otices, summons, orprocesses of any !ind sent by

registered mail to the lastregistered address of suchgeneral agent of the companyconcerned or to theCommissioner shall be sufficientserice and deemed as if seredon the insurance company itself.

Section 3*). %xcept as otherwiseproided by law or treaty, it shall

be unlawful for any person,partnership, association or

8/13/2019 sec 273 - 322

27/33

issue or to delier or acceptpolicies or contracts of insuranceof or for, any insurance companyor companies not authori'ed totransact business in the

Philippines, coering ris!s, life ornonlife, situated in thePhilippines9 and any such person,partnership, association orcorporation iolating theproisions of this section shall bedeemed guilty of a penaloffense, and upon conictionthereof, shall for each suchoffense be punished by a fine ofte% t,"+(a%d $e("(- "#i3$#i("%3e%t "! (i= 3"%t,(-"# "t, at t,e di(*#eti"% "!t,e *"+#t9 Proided, #hat theproisions of this section shallnot apply to reinsurance.

corporation in the Philippines, forhimself or itself, or for someother person, partnership,association or corporation, eitherto procure, receie or forward

applications of insurance in, or toissue or to delier or acceptpolicies or contracts of insuranceof or for, any insurance companyor companies not authori'ed totransact business in thePhilippines, coering ris!s, life ornon:life, situated in thePhilippines9 and any such person,partnership, association orcorporation iolating theproisions of this section shall bedeemed guilty of a penal offense,and upon coniction thereof,shall for each such offense bepunished by a fine of T&",+%d#ed !i!t t,"+(a%d $e("(/ P 2@0-000.00- "#i3$#i("%3e%t "! (i= /63"%t,(- "# "t,- at t,edi(*#eti"% "! t,e

*"+#t8 Provided, #hat theproisions of this section shallnot apply to reinsurance.

Title 2REINSURANCE ?ROERS

Section 3*0. %xcept as proidedin the next succeeding title, noperson shall act as reinsurancebro!er in the Philippines unlesshe is authori'ed as such by theCommissioner.

A reinsurance bro!er is one who,for compensation, not being aduly authori'ed agent, employeeor officer of an insurer in whichany reinsurance is effected, actor aids in any manner innegotiating contracts ofreinsurance, or placing ris!s ofeffecting reinsurance, for any

insurance company authori'ed todo business in the Philippines.

Section 3*. %xcept as proidedin the next succeeding title, noperson shall act as reinsurancebro!er in the Philippines unlesshe is authori'ed as such by theCommissioner.

4A reinsurance bro!er is onewho, for compensation, not beinga duly authori'ed agent,employee or officer of an insurerin which any reinsurance iseffected, acts or aids in anymanner in negotiating contractsof reinsurance, or placing ris!s ofeffecting reinsurance, for any

insurance company authori'ed todo business in the Philippines.

8/13/2019 sec 273 - 322

28/33

Section 3**. -pon applicationand payment of thecorresponding fee hereinafterprescribed, and the filing of two

errors and omissions/professional liability orprofessional indemnity1 policieshereinafter described, a personmay, if found 6ualified, be issueda license to act as reinsurancebro!er by the Commissioner. osuch license shall be alid a!te#t,e t,i#tiet, da "!

8/13/2019 sec 273 - 322

29/33

amount of the bro!ing businessof the applicant, but in no caseshall the amount of each of suchpolicies be less than fie hundredthousand pesos. /As amended by

Presidential ?ecree o. *"$$1

Section 3*2. #he Commissionermay recall, suspend or reo!ethe license granted to areinsurance bro!er for iolationof any existing law, rule andregulation, or any proision ofthis Code after due notice andhearing.

amount of the bro!ing businessof the applicant, but in no caseshall the amount of each of suchpolicies be less than Biehundred thousand pesos

/P$00,000.001.

Section 32*. #he Commissionermay recall, suspend or reo!ethe license granted to areinsurance bro!er for iolationof any existing law, rule andregulation, or any proision ofthis Code after due notice andhearing.

Title RESIDENT AGENTS

Section 3*3. o person shall actas resident agent, as hereinafterdefined, unless he is registeredas such with the Commissioner.

Section 3*". #he term 4residentagent4, as used in this title, is

one duly appointed by a foreigninsurer or bro!er not authori'edto do business in the Philippinesto receie in its behalf notices,summons and legal processes inconnection with actions or otherlegal proceedings against suchforeign insurer or bro!er.

Section 3*$. #he application fora certificate of registration asresident agent filed with theCommissioner must beaccompanied with8 /a1 a copy ofthe power of attorney, dulynotari'ed and authenticated bythe Philippine Consul in the placewhere such foreign insurer orbro!er is domiciled, empoweringthe applicant to act as residentagent and to receie notices,

summons and legal processes forand in behalf of such foreign

Section 322. o person shall actas resident agent, as hereinafterdefined, unless he is registeredas such with the Commissioner.

Section 323. #he term residentagent, as used in this title, is one

duly appointed by a foreigninsurer or bro!er not authori'edto do business in the Philippinesto receie in its behalf notices,summons and legal processes inconnection with actions or otherlegal proceedings against suchforeign insurer or bro!er.

Section 32". #he application fora certificate of registration asresident agent filed with theCommissioner must beaccompanied with a copy of thepower of attorney, duly notari'edand authenticated by thePhilippine Consul in the placewhere such foreign insurer orbro!er is domiciled, empoweringthe applicant to act as residentagent and to receie notices,

summons and legal processes forand in behalf of such foreign

8/13/2019 sec 273 - 322

30/33

insurer or bro!er in connectionwith any action or legalproceeding against such foreigninsurer or bro!er9 a%d / a*"$ "! t,e *"##e($"%di%)

*e#ti!i*ate i((+ed t,e?"a#d "! I%e(t3e%t( a(#e9+i#ed +%de# Se*ti"% : "!Re$+li* A*t N". @:@@- i!(+*, !"#ei)% i%(+#e# "##"'e# i( %"t "t,e#&i(ee=e3$t !#"3 (+*,#e9+i#e3e%t.

Section 3*+. &t shall be the dutyof such resident agent to notifyimmediately the Commissionerof any change of his officeaddress.

Section 3*7. A certificate ofregistration issued to a residentagent shall expire "% t,et,i#tiet, da "!

8/13/2019 sec 273 - 322

31/33

retentions, under which suchris!s are to be accepted by thecompany, unless suchunderwriter is registered as suchwith the Commissioner.

Section 3*. %ery non:lifeinsurance company doingbusiness in the Philippines mustmaintain at all times a register ofris!s accepted and a claimsregister for each line of ris!sengaged in by such non:lifeinsurance company with suchentries therein as are now or asmay hereafter be re6uired by theCommissioner, and it shall be theresponsibility of the underwriteron the particular line or ris!inoled to see to it that the saidregisters are well maintained and!ept, and that all entries thereinare properly and correctlyrecorded. Such registers shall beopen to inspection andexamination of duly authori'ed

representatie of theCommissioner at all times duringbusiness hours.

Section 320. o person shall beregistered with theCommissioner, unless suchperson shall be at least twenty:one years of age on the date ofsuch registration9 a resident ofthe Philippines9 of good moral

character and with no conictionof any crime inoling moralturpitude9 has had at the timesuch registration is made at leasttwo years of underwriting wor! inthe particular line or ris!inoled9 and has passed such6ualifying written examinationthat the Commissioner shallconduct at such time and in such

place as he may decide to holdfor applicants desiring to act as

retentions, under which suchris!s are to be accepted by thecompany, unless suchunderwriter is registered as suchwith the Commissioner.

Section 32). %ery non:lifeinsurance company doingbusiness in the Philippines mustmaintain at all times a register ofris!s accepted and a claimsregister for each line of ris!sengaged in by such non:lifeinsurance company with suchentries therein as are now or asmay hereafter be re6uired by theCommissioner, and it shall be theresponsibility of the underwriteron the particular line of ris!inoled to see to it that the saidregisters are well maintained and!ept, and that all entries thereinare properly and correctlyrecorded. Such registers shall beopen to inspection andexamination of duly authori'ed

representaties of theCommissioner at all times duringbusiness hours.

Section 32. o person shall beregistered with theCommissioner, unless suchperson shall be at least twenty:one /2*1 years of age on the dateof such registration9 a resident ofthe Philippines9 of good moral

character and with no conictionof any crime inoling moralturpitude9 has had at the timesuch registration is made at leasttwo /21 years of underwritingwor! in the particular line of ris!inoled9 and has passed such6ualifying written examinationthat the Commissioner shallconduct at such time and in such

place as he may decide to holdfor applicants desiring to act as

8/13/2019 sec 273 - 322

32/33

underwriters.

Such examination shall not bere6uired of any person who hassered as non:life company

underwriter for a period of atleast fie years, if theCommissioner is satisfied of theapplicants competence asshown by the results of hisunderwriting wor! in the non:lifeinsurance company orcompanies that employed him inthat capacity. #he minimumunderwriting experience hereinre6uired may be reduced orwaied if it is shown to thesatisfaction of the Commissionerthat the non:life companyunderwriter has undergoneextensie education andortraining in insurance.

Section 32*. Any applicant whomisrepresents or omits anymaterial fact in his application

for registration as a non:lifecompany underwriter, orcommits any dishonest act inta!ing or in connection with the6ualifying written examinationfor underwriters, shall be barredfrom being registered as suchnon:life company underwriterand, if already registered, hisregistration shall be cancelledand the certificate of registration

issued in his faor shall berecalled immediately by theCommissioner.

&n the eent that the certificateof authority of a non:lifeinsurance company to transactbusiness is suspended orreo!ed due to business failurearising largely from the

imprudent and in(udiciousacceptance of ris!s by the

underwriters.

4Such examination shall not bere6uired of any person who hassered as non:life company

underwriter for a period of atleast fie /$1 years, if theCommissioner is satisfied of theapplicants competence asshown by the results of hisunderwriting wor! in the non:lifeinsurance company orcompanies that employed him inthat capacity. #he minimumunderwriting experience hereinre6uired may be reduced orwaied if it is shown to thesatisfaction of the Commissionerthat the non:life companyunderwriter has undergoneextensie education andortraining in insurance.

Section 330. Any applicant whomisrepresents or omits anymaterial fact in his application

for registration as a non:lifecompany underwriter, orcommits any dishonest act inta!ing or in connection with the6ualifying written examinationfor underwriters, shall be barredfrom being registered as suchnon:life company underwriterand, if already registered, hisregistration shall be cancelledand the certificate of registration

issued in his faor shall berecalled immediately by theCommissioner.

4&n the eent that the certificateof authority of a non:lifeinsurance company to transactbusiness is suspended orreo!ed due to business failurearising largely from the

imprudent and in(udiciousacceptance of ris!s by the

8/13/2019 sec 273 - 322

33/33

underwriter concerned, theregistration of such underwritershall li!ewise be cancelled andhis certificate of registration shallbe recalled by the Commissioner,

and no similar certificate shallthereafter be issued in his faor.

Section 322. o certificate ofregistration issued to anunderwriter shall be alid a!te#t,e t,i#tiet, da "!