QuestionsQuestions (Act No. 2867)
It amends Act No. 2427 to strengthen/clarify the capital and deposit requirements for foreign insurance companies wishing to do business in the Philippines.
Section 178.
It must be possessed of paid-up unimpaired capital or assets and reserves not less than those required of domestic insurance companies.
They must deposit with the Insurance Commissioner securities (for the benefit and security of policyholders and creditors in the Philippines) to an actual market value of at least P100,000.
Policyholders and creditors in the Philippines.
Government bonds of the United States or the Government of the Philippines or authorized political subdivisions of the Philippines, bonds of the government where the company is organized, or other good securities approved/satisfactory to the Insurance Commissioner.
Actual market value of one hundred thousand pesos (P100,000).
At least fifty percent (50%) of the securities or bonds must consist of securities of the Philippines.
Yes. Compliance is sufficient if the required deposit is made with the Chief of the Bureau of Insular Affairs of the War Department in Washington or with a safe deposit company designated by that officer.
They must be held subject to the control of the Chief of the Bureau of Insular Affairs, acting as the representative of the Insurance Commissioner of the Philippines.
The proviso in the amended Section 178 that begins with “And provided, further,”.
January 1, 1920.
That the company’s capital or assets must be fully paid up and not impaired (i.e., not diminished in a way that would undermine the required financial standing).
Yes. It requires not less than the reserves required of domestic insurance companies as well.
The deposit requirement is expressly tied to companies “organized or existing under the government or laws other than those of the Philippines or any state of the United States.”
It requires foreign insurers to meet domestic-level paid-up capital/asset and reserve requirements, and in certain cases additionally mandates a P100,000 deposit of acceptable securities for policyholder and creditor security.