Law Summary
Assessment to Cover Excess Expenses
- The Office of the Insurance Commissioner will assess insurance companies to cover any excess expenses beyond income from designated fees.
- The excess is calculated after excluding expenses unrelated to insurance companies, their agents, and insurance matters.
- Fees referenced come from specific sections of the Insurance Act (Act No. 2427).
- The assessment will be applied pro rata to all domestic and foreign insurance companies operating in the Philippines.
- Assessment is based on gross premiums and other considerations from policies or reinsurance covering property or risks located in the Philippines.
- A minimum assessment amount of three hundred pesos per company is mandated.
- No deduction is allowed for premiums and considerations on reinsurance placed with unauthorized insurance companies.
Procedure for Assessment and Collection
- Assessments are to be levied and collected twice a year, in July and January.
- Collected amounts are paid into the National Treasury.
- The Insurance Commissioner has authority to issue rules, regulations, and require reports and documents to enforce the Act effectively.
Obligations of Insurance Companies
- All domestic and foreign insurance companies operating in the Philippines are required to pay the assessments within the prescribed periods.
Effectivity
- The Act takes effect upon the formal opening of the Central Bank of the Philippines.