IC CIRCULAR LETTER NO. 11/91

: Net life insurance premiums due from October 1 to December 31 which have not been recorded as paid as of December 31 are considered admitted assets for policies classified as premium paying with regular payment modes, provided the initial premiums are received and reserves are set up.
: The conditions include receipt of initial premium payments, setup of corresponding reserves, and no notice of cancellation or withdrawal from the policyholder.
: A policy or contract of insurance is valid and binding only when the premium has been paid or during the grace period provision.
: Policies classified as premium paying on the company's valuation records with regular premium payment modes or under a monthly salary deduction scheme.
: The corresponding reserves must be set up by the company for the premiums to be considered admitted assets.
: Yes, the initial premium payments must be received by the company.
: It took effect beginning the calendar/valuation year 1991.
: It supersedes Circular Letter No. 1 dated November 20, 1981.
: If there has been a notice of cancellation or withdrawal from the policyholder, then the unpaid premiums cannot be considered as admitted assets.