Question & AnswerQ&A (IC CIRCULAR LETTER NO. 24-2009)
The main purpose is to mandate every life insurance company authorized to transact business in the Philippines to become a member of the Philippine Life Insurance Association (PLIA) in order to promote the best interests of the life insurance industry and foster cooperation, discipline, and harmony among life insurance companies.
Every life insurance company authorized to transact business in the Philippines is required to become a member of the Philippine Life Insurance Association (PLIA).
Membership to the PLIA is governed by the rules and regulations of the Philippine Life Insurance Association.
Existing life insurance companies not yet members of the PLIA must apply for membership within 30 days from the issuance date of the circular.
New life insurance companies must apply for PLIA membership within 30 days from the date of issuance of their Certificate of Authority by the Insurance Commission.
Yes, the PLIA is required to provide and make available its services to all members without any discrimination.
The circular took effect immediately upon adoption on September 4, 2009.
The enforcement is based on the authority of the Insurance Commission as decreed in the circular to ensure industry cooperation and discipline among life insurance companies operating in the Philippines.
While the circular does not explicitly state penalties, failure to comply with the mandatory membership requirement may result in regulatory sanctions or refusal to authorize or continue business operations by the Insurance Commission.