Question & AnswerQ&A (IC CIRCULAR LETTER NO. 13/95 CL)
Section 245 requires every insurance company doing business in the Philippines to keep its books, records, accounts, and vouchers in a manner that allows the Commissioner or his authorized representative to readily verify its annual statements to ensure solvency and compliance with the Insurance Code and related regulations.
The Commissioner or his authorized representative has the authority to verify the annual statements of insurance companies.
Insurance companies must maintain the book records and documents supporting their Annual Statement for at least five (5) years following the date of approval of such statement.
The purpose is to preserve historical data and ensure the availability of these records for verification at all times.
The Circular took effect immediately upon adoption on June 9, 1995.
Insurance companies must keep books, records, accounts, vouchers, and documents supporting their annual statements.
To ascertain whether the company is solvent and has complied with the provisions of the Insurance Code or related circulars, instructions, rulings, or decisions.
The Circular specifies that the records should be maintained in such a manner that the Commissioner or his representative may readily verify the annual statements, but it does not specify a particular format.
Maintaining historical data ensures that records regarding financial condition and significant operational or ownership changes are available for verification at all times, supporting transparency and regulatory compliance.