Question & AnswerQ&A (IC CIRCULAR LETTER NO. 24-94)
The purpose is to determine compliance with the margin of solvency requirement for non-life insurance companies.
Premiums due from the Government of the Philippines, its political subdivisions or instrumentalities including government-owned or controlled corporations, premiums receivable within 90 days from inception, and Marine Hull premiums covered by Deferred Premiums Clause "I" payable in quarterly installments within 90 days.
The premiums must be due from the Government or its instrumentalities whether as insured, general agent, insurance broker, mortgagee or trustee. If acting as trustee, proof must be presented that such premiums are held as trustee for the insurance company.
An aging schedule detailing each policy and copies of the policies along with other pertinent documents must be made available for examiner verification.
Unverified accounts will be disallowed and cannot be considered as admitted assets.
Premiums receivable covering policies within 90 days from inception as of the cut-off date can be considered as admitted assets.
Only quarterly installments due within 90 days as of the cut-off date under the Deferred Premiums Clause "I" are admissible as assets, including any installments not yet due but within that period, with support of aging schedules and verification documents.
No, after-date transactions are not allowed.
This circular applies as of December 31, 1993 and thereafter.
It supersedes the Circular Letter dated November 20, 1981.