Question & AnswerQ&A (HDMF CIRCULAR NO. 331)
An insurance agent is any person who, for compensation, solicits or obtains insurance on behalf of any insurance company or transmits an application for a policy to or from such company or acts in the negotiation of such insurance.
A general agent is any person who, for compensation, solicits or obtains insurance and is empowered by an insurance company to perform acts on its behalf in the conduct of its business as specified in the general agency agreement.
No. No insurance company or any agent thereof shall pay commissions or compensation to any person for obtaining insurance unless such person has first procured a license from the Insurance Commissioner.
No. No person shall be licensed as an insurance agent or general agent of more than one life insurance company.
No. A person licensed as an insurance agent or general agent shall not be licensed as an insurance broker in the same kind of insurance business and vice versa.
The applicant must be a resident of the Philippines, be trustworthy, and pass the required written examination unless exempted.
The renewal of their license may be denied. Being actively engaged means earning at least three thousand six hundred pesos in commissions or compensation during the licensed year.
Grounds include willful violation of the Insurance Code or regulations, fraud, dishonest practices, misappropriation of funds, incompetence, material misrepresentation, insolvency, failure to pass exams, among others.
Not always. Certain applicants who held a license in the last 10 years, completed an approved insurance course or are found competent by the Insurance Commissioner are exempted from the examination.
Licenses are valid until midnight of June 30 of the year following issuance unless revoked or suspended, and may be renewed annually on January 1 or within six months thereafter.
Yes, provided the alien had been licensed before September 30, 1968, and has submitted proof of compliance with the Board of Investments report as required by law.
For issuance or renewal, P100.00 is paid for an insurance agent's license and P200.00 for a general agent's license. Additional fees apply for partnerships or corporations naming multiple individuals.
They must be domiciled in the Philippines, empowered by their articles of incorporation to transact such business, and designate the individual(s) exercising the licensed authority.
The license shall be immediately cancelled without prior notice, and the parties responsible shall be dealt with as provided in the circular.