Obligations Imposed on Insurance Offices and Branches
- Insurance offices and branches are directed to prominently post the list of insurance companies under CDO.
- Posting must be done in the most conspicuous places to ensure maximum public awareness.
- This is to aid customers and stakeholders in identifying companies that are prohibited from operating.
Purpose and Effectivity of the Circular Letter
- The circular serves as a preventive and consumer protection measure to stop unauthorized issuance of insurance policies by companies under CDO.
- It aims to inform the public and prevent fraudulent or invalid insurance transactions.
- The Circular Letter takes effect immediately upon issuance.
Signatory and Authority
- The Circular Letter was signed by Benjamin S. Santos, then Insurance Commissioner.
- It carries the authority of the Insurance Commission of the Philippines, thereby imposing mandatory compliance.
Legal Implications and Enforcement
- Issuance of policies by companies under a CDO is unauthorized and likely carries legal penalties.
- The Circular supports enforcement by way of public knowledge and internal compliance within insurance offices.
- Continuous issuance despite CDO may lead to further sanctions or legal action against the companies and involved personnel.