Question & AnswerQ&A (JOINT IC-CDA-SEC MEMORANDUM CIRCULAR NO. 01-2010)
Entities must secure a Certificate of Authority from the Insurance Commission before transacting insurance business.
Insurance activity involves regularly collecting contributions or premiums prior to a contingent event and providing guaranteed benefits upon the occurrence of that event.
No, these risk pooling practices are excluded because benefits are contingent on amounts collected and membership and contributions are voluntary without pre-determined benefits.
They must terminate informal insurance or insurance-like activities within one (1) year from the effectivity of the Circular.
They may enter into formal arrangements with authorized insurance providers by partnering with commercial insurance companies or having their members join authorized cooperative insurance providers or mutual benefit associations.
Within two (2) years from the effectivity of the Circular.
They may register as a Life or Non-Life Insurance Company, Cooperative Insurance Provider, or Mutual Benefit Association.
The Insurance Commission (IC), Securities and Exchange Commission (SEC), and Cooperative Development Authority (CDA).
They can collaborate, exchange information, and issue cease and desist orders after due notice and hearing to ensure compliance with the Insurance Code and related laws.
Fifteen (15) days after its publication in a newspaper of general circulation in the Philippines.