QuestionsQuestions (IC LICENSING OF INSURANCE AGENTS AND GENERAL AGENTS)
An “insurance agent” is any person who, for compensation, solicits or obtains insurance on behalf of an insurance company, transmits an application to or from such company for a person other than himself, or offers or assumes to act in the negotiation of insurance.
A “general agent” is an insurance agent for compensation who is empowered by the insurance company (under a general agency agreement) to do additional acts for and on its behalf in the conduct of its business, beyond mere solicitation or obtaining/negotiation.
No insurance company in the Philippines, or its agent, may pay any commission/compensation for obtaining insurance unless the person has first procured a license from the Insurance Commissioner to act as an insurance agent or general agent.
No. Under Section 2.2, no person shall act without first procuring the required license from the Insurance Commissioner.
A license is valid until midnight of the 30th day of June of the year following its issuance, unless earlier revoked or suspended. It may be renewed annually on January 1 or within six (6) months thereafter.
The license authorizes only the individual or individuals named in the license. Exercise or attempted exercise by an individual not named—at the licensee’s knowledge or consent—constitutes cause for revocation or suspension.
A licensed agent/general agent may not receive commissions unless he secures/places with the company at least an equal amount of outside business during the license period. The rule also applies to partnerships/corporations and their members/stockholders.
A person may not be licensed to act as an insurance agent or general agent of more than one (1) life insurance company; and cannot be a general agent of more than one (1) non-life insurance company, nor an insurance agent of more than seven (7) other non-life insurance companies.
No. The circular prohibits a person licensed as an insurance agent/general agent from being licensed as an insurance broker, and likewise prohibits a broker from being licensed as an agent/general agent in the same kind of insurance business.
No person shall be licensed to act as general agent unless he has been licensed as an ordinary agent and actively engaged as such for at least one year.
No official or employee of an insurance brokerage or an adjustment company, and no individual adjuster, shall be licensed to act as an insurance agent or general agent.
No employee with the rank of manager and above of an insurance company shall be licensed to act as an insurance agent or general agent.
The applicant must: (1) be a resident of the Philippines; (2) be trustworthy; and (3) pass the required written examination unless otherwise exempt.
It must be domiciled in the Philippines and empowered under its articles of incorporation to transact the kind of business applied for; the individual named in the license must also meet the personal qualifications.
A grade of 70% is necessary to pass the examination.
Examples include: willful violation of the Insurance Code/Circular/rules; intentional material misstatement in the application; obtaining the license by fraud/misrepresentation; fraud/dishonest practices; misappropriation/illegal withholding of fiduciary money; material misrepresentation of policy terms; failure to pass the required examination (if not exempt); or being declared insolvent or bankrupt.
A license shall not be renewed if the holder has not been actively engaged as such agent.
It means the license holder must have earned commissions or other compensation for services as insurance agent/general agent amounting to at least P3,600 during the year following the issuance of the license.