Question & AnswerQ&A (IC INSURANCE MEMORANDUM CIRCULAR NO. 2-86)
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 or contract of insurance to or from such company or offers or assumes to act in the negotiation of such insurance.
The term person includes any individual, partnership, association, or corporation unless the context otherwise requires.
The applicant must be a resident of the Philippines, trustworthy, and pass the required written examination unless exempted.
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 agent must secure or place with the company at least an equal amount of outside business during the period covered by his license.
Willful violation of the Insurance Code or rules, fraud or dishonest practices, misappropriation of fiduciary funds, failure to pass exams if required, insolvency or bankruptcy, or failure to be actively engaged are among the causes.
The license holder must have earned commission or other compensation for services rendered as such agent or broker amounting to at least three thousand six hundred pesos during the year following the issuance of the license.
No, insurance companies or their agents cannot pay any commission or compensation to any person not first licensed by the Insurance Commissioner.
The application for a new license shall be refused unless after one year the applicant shows proof of undergoing at least 40 hours of training in the appropriate insurance business within the last six months prior to application.