Title
Paid-up Capital and Solvency Margin Rules
Law
Ic Circular Letter No. 7-2004
Decision Date
Mar 29, 2004
Insurance companies must maintain unimpaired paid-up capital in accordance with specified minimum requirements based on their category, ensuring financial stability and compliance with solvency margin regulations.
A

Q&A (IC CIRCULAR LETTER NO. 7-2004)

Insurance companies are required to keep their paid-up capital intact or unimpaired at all times, meaning that the total net assets or stockholders' equity must be at least equal to the paid-up capital of the company.

Paid-up capital is considered intact or unimpaired if the total net assets or stockholders' equity is at least equal to the paid-up capital of the company.

The paid-up capital shall be taken to be equal to the minimum paid-up capital required of the company corresponding to the category in which it belongs.

The minimum paid-up capital is P50 million.

The minimum paid-up capital is P75 million.

The minimum paid-up capital is P75 million.

The minimum paid-up capital is P150 million.

The minimum paid-up capital is P250 million.

The circular took effect immediately upon its adoption on March 29, 2004.


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