Title
Corporate Goverce Code for Insurance Sector
Law
Ic Circular Letter No. 31-2005
Decision Date
Sep 26, 2005
The Insurance Commission mandates all insurance companies and intermediaries to adopt a revised Code of Corporate Governance, emphasizing enhanced board roles, rigorous director appointment procedures, and mandatory self-assessment for compliance.
A

Role Definitions in Corporate Governance

  • Clearly defines the roles of the board of directors, chairman, and non-executive directors.
  • Emphasizes the distinct functions and responsibilities of each position to enhance governance effectiveness.

Director Appointment and Evaluation Procedures

  • Introduces a rigorous procedure for the appointment of directors to ensure qualified leadership.
  • Requires a formal evaluation of the board’s overall performance and that of individual directors.

Self-Assessment and Reporting Requirements

  • Incorporates a Self-Assessment Questionnaire focused on adherence to various principles of good governance.
  • Insurance companies and intermediaries must submit the completed questionnaire to the Insurance Commission within one (1) month after each semester.

Enforcement and Compliance

  • The code is issued by the Insurance Commission and is mandated for strict compliance by all covered entities.
  • Non-compliance may lead to regulatory actions, ensuring adherence to established governance standards.

Additional Notes

  • The Code replaces an earlier issuance on corporate governance for the insurance sector.
  • The full text is available at the Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

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