Monitoring and Reporting Requirements
- Insurance companies must submit compliance reports to the Insurance Commission quarterly.
- Reports are based on a rolling 12-month aggregate as of March 31, June 30, September 30, and December 31 each year.
- The initial report covers the period up to December 31, 2004 and must be submitted within 45 days after the reporting date.
Documentation and Proof of Compliance
- Companies are required to submit copies of their reinsurance contracts annually to the Insurance Commission.
- Alongside contracts, the security ratings of the reinsurers must also be provided.
- The deadline for submission of these documents is March 31 annually; however, an extension to April 30, 2005 was granted for the initial compliance.
Verification and Enforcement
- The Insurance Commission reserves the right to examine company records to verify the accuracy of submitted reports.
- Compliance with this circular is mandatory for the renewal of the company’s certificate of authority.
Legal and Administrative Provisions
- The circular takes effect immediately following its adoption on 2 March 2005.
- Non-compliance may result in regulatory actions, including denial of certificate of authority renewal.
- Insurance Commissioner Benjamin S. Santos officially issued the directive.