QuestionsQuestions (PROCLAMATION NO. 1180)
PD No. 1270 authorizes the organization and licensing of a professional reinsurer in the Philippines, the “National Reinsurance Corporation of the Philippines,” and designates it as the national institution that will subscribe to the Philippine allotment in the Asian Reinsurance Corporation, to promote stronger and more coordinated national reinsurance capacity.
The Insurance Commissioner.
It is to be organized under Act No. 1459 (Corporation Law) and licensed as a professional reinsurer under Presidential Decree No. 612 (Insurance Code).
The “National Reinsurance Corporation of the Philippines.”
The Insurance Commissioner must approve them to ascertain that the purposes under PD No. 1270 are carried out.
The Insurance Commissioner shall forward them to the Securities and Exchange Commission for registration.
It is designated as the national institution authorized to subscribe to the portion of the Asian Reinsurance Corporation’s capital stock allotted to the Republic of the Philippines.
US $500,000.
The Insurance Commissioner.
They must cede at least ten percent (10%) of their outward reinsurance placed with unauthorized foreign reinsurers to the National Reinsurance Corporation of the Philippines.
They must cede at least ten percent (10%) of all new reinsurance placed which would otherwise be outward foreign reinsurance, and renewals of such new reinsurance placements, to the National Reinsurance Corporation of the Philippines.
It refers to foreign reinsurers that are not authorized/recognized under Philippine regulatory requirements; the law specifically targets outward reinsurance placed with such unauthorized foreign reinsurers.
They must be accorded the “best terms and conditions afforded by the existing treaties.”
Yes. Section 5 states that the decree shall take effect immediately.
To promote and develop a strong national insurance industry; provide well-coordinated and efficient reinsurance machinery; achieve higher national retention; utilize regional retention capacity through regional/international cooperation; enable participation in the Asian Reinsurance Corporation and other arrangements.
Article III, Section 2 of the Asian Reinsurance Corporation agreement allows a Member-State to designate a national institution to subscribe to and purchase shares allotted to the Member-State; PD No. 1270 designates the National Reinsurance Corporation as that national institution.
All new reinsurance that would otherwise be outward foreign reinsurance, plus renewals of such new reinsurance placements.