Prohibition on Government Officials Acting as Insurance Agents
- Government offices or agencies tasked with implementing the provisions of the relevant chapter of the Insurance Code, including their officials and employees, are prohibited from acting as agents to procure the required insurance policies or surety bonds.
- This measure is to prevent conflicts of interest and ensure proper enforcement of insurance laws.
Liability for Violations of Commission Rate and Related Provisions
- In cases where corporations, associations, or government entities violate the commission rate provisions, the executive officers who knowingly permit or fail to prevent such violations shall be held personally liable as principals.
- This provision establishes accountability at the managerial level for compliance with the Insurance Code.
Scope and Application
- The circular specifically addresses non-life insurance companies engaged in compulsory motor vehicle liability insurance business within the Philippines.
- It reinforces compliance with Sections 387 and 389 of the Insurance Code relating to commission rates and prohibitions on government officials acting as agents.
Enforcement and Regulatory Guidance
- The Insurance Commission issues this circular to remind and guide insurance companies and related parties regarding the legal commission limits and associated prohibitions.
- Compliance with these provisions is mandatory and subject to regulatory scrutiny and penalties for violations.
Procedural Directive
- Insurance companies and their agents are directed to adhere strictly to the prescribed maximum commission of 10%.
- Government officials involved in insurance implementation must refrain from engaging in insurance agency activities under this law to avoid conflicts and potential legal sanctions.