Question & AnswerQ&A (IC CIRCULAR LETTER NO. 27-05)
The purpose is to expedite the approval of traditional life insurance products in the Philippines by implementing Section 226 of Presidential Decree No. 1460, known as the Insurance Code of 1978, under the powers of the Insurance Commissioner.
The submission must include all documents required by Circular Letter No. 11-90, a transmittal letter addressed to the Insurance Commissioner, a duly accomplished Checklist and Evaluation Sheet, and a Deed of Undertaking executed by an authorized senior officer or the President of the insurance company.
The Deed of Undertaking must be executed by the President, Head of the company, or any authorized senior officer whose name has been submitted to the Insurance Commission.
The Deed must declare that the product substantially contains mandatory provisions under Sections 227 to 231 of the Insurance Code, complies with all substantive requirements and guidelines issued by the Insurance Commission, the Checklist and Evaluation Sheet are correctly completed, and the company accepts responsibility for any willful misrepresentation or violation.
It applies to traditional life insurance products on standard policy provisions and/or asset share format, traditional policies not on standard provisions or asset share format, and other traditional life insurance products. It does not apply to variable contracts as defined in Title 10 of the Insurance Code.
The Insurance Commission reserves the right to conduct post-audit inspections even after product issuance to ensure compliance with the Insurance Code and related circulars and guidelines.
The Insurance Commissioner may recall the approval, impose penalties under Section 415 of the Insurance Code, and other administrative sanctions. The company may also be ordered to take corrective actions while protecting the insured's interest.
Yes, they may institute appropriate actions to recover damages suffered due to any misrepresentation, deficiency, or violation despite any actions taken by the Insurance Commissioner.
Submissions should be sent directly to the Actuarial Division of the Insurance Commission which will issue an acknowledgment and proceed with verification before granting approval.
The PLIA is deputized to disseminate the Circular, along with all attachments, to its member-companies to ensure wide dissemination and compliance.