IC CIRCULAR LETTER NO. 6/88

: The maximum commission rate allowed for agents procuring compulsory motor vehicle liability insurance is ten percent (10%) of the amount of the premiums therefor, as stated in Section 387 of the Insurance Code.
: No, government offices or agencies having the duty of implementing the provisions of this chapter, nor any official or employee thereof, shall not act as agents in procuring the insurance policy or surety bond as provided in Section 387.
: The subject is the commission rate under Chapter VI of the Insurance Code on compulsory motor vehicle liability insurance, specifically addressing unauthorized commission rates exceeding the allowed maximum.
: Sections 387 and 389 of Chapter VI of the Insurance Code are cited in the circular letter.
: The executive officer or officers of the corporation, association, or government office or entity who knowingly permitted or failed to prevent the violation shall be held liable as principals.
: It applies to compulsory motor vehicle liability insurance.
: No, it is not legal. Commission rates must not exceed 10% as per Section 387 of the Insurance Code.
: They can be held liable as principals if they knowingly permit or fail to prevent violations, as per Section 389.
: Section 387 prohibits government employees or officials responsible for implementing the provisions of the chapter from acting as agents in procuring insurance policies or surety bonds for compulsory motor vehicle liability insurance.