QuestionsQuestions (LETTER OF INSTRUCTION NO. 36)
No. Actions to enforce any judgment, attachment, or other provisional remedies are suspended. However, any final and executory judgment of a competent authority is treated by the conservator or receiver as a non-disputed claim.
The company is prohibited from selling, encumbering, transferring, or disposing of its properties, except in the ordinary course of business and/or when approved by the Insurance Commissioner upon the favorable recommendation of the appointed conservator/receiver and/or the CRL Division.
The company is prohibited from making any payment of its liabilities as of the date of issuance of the Stay Order, except for approved administrative expenses and/or payments approved by the Insurance Commissioner upon the favorable recommendation of the appointed conservator/receiver and/or the CRL Division.
No. The Stay Order does not diminish or impair their rights; it only suspends their right to enforce the claims during the term of the Stay Order.
The Stay Order does not apply to criminal or administrative actions against individual owner(s), partner(s), director(s), or officer(s) of the company.
The Stay Order does not apply to cases already pending appeal in the Supreme Court at the time of issuance. Any final and executory judgment arising from such appeal must be referred to the conservator or receiver for appropriate action.
Yes. The Stay Order does not apply to cases specifically ordered excluded by the Insurance Commissioner upon the favorable recommendation of the conservator/receiver and/or the CRL Division, and the recommendation must be supported by findings that exclusion is necessary to achieve financial rehabilitation objectives and/or preserve assets for the benefit of stakeholders.
Attempts by policyholders, members, planholders, and/or creditors to seek legal or other recourse against the distressed company outside the conservatorship or receivership proceedings are considered indirect contempt of the Insurance Commission.
It refers to Sections 255 and 256 of Republic Act No. 10607 (Amended Insurance Code); Sections 49 and 50 of Republic Act No. 9829 (Pre-Need Code); and it also notes Section 4(i) of Executive Order No. 192, s. 2015.
A copy must be posted at the entrance or conspicuous place at the company’s main office and branches. Publication in a newspaper of general circulation in the Philippines must be made once a week for three (3) consecutive weeks, with the first publication within ten (10) days from issuance, observing Circular Letter No. 2016-34 (21 June 2016). It must also be published in the Insurance Commission’s website.
It takes effect immediately.
It prohibits creditors/stakeholders from seeking recourse outside the conservatorship or receivership proceedings; such attempts constitute indirect contempt punishable under the cited provisions (Section 437(g) of the Amended Insurance Code or Section 6(f) of the Pre-Need Code).