Eligibility to Apply for an Adjuster's License
- Applicants: Individuals, partnerships, associations, or corporations.
- Citizenship and Ownership: Individuals must be Filipino citizens; corporate entities must have at least 60% Filipino ownership.
Licensing Requirements for New Adjusters
- For Natural Persons:
- Good moral character and no final conviction for crimes involving moral turpitude.
- At least 10 years of experience in adjustment or completion of an accredited insurance adjuster course or passing the Commission's exam.
- Paid-up capital of at least PHP 250,000.
- For Juridical Persons:
- President/GM/COO with good moral character and no disqualifying convictions.
- Same 10-year experience or equivalent educational/training requirements.
- Paid-up capital of at least PHP 500,000.
- Common Requirements:
- Submission of a 3-year business plan.
- Potential referral to industry associations for assessment of moral integrity and trustworthiness.
- Pre-licensing inspection of premises, accounting records, and bank deposits.
Renewal of Adjuster's License
- Annual submission of updated information showing ownership, partnerships, stockholders, directors, and officers.
- Active engagement requirement: must have earned fees of at least PHP 500,000 (partnership/corporation) or PHP 250,000 (individual) in claim adjustment services in the year preceding renewal.
Capitalization Requirements Upon Change of Ownership
- New owners of existing adjuster entities must comply with capitalization requirements as prescribed.
Licensing of Employees Representing Licensed Firms
- Employees may act on behalf of licensed firms if they:
- Are of good moral character and free from convictions involving moral turpitude.
- Have at least 5 years experience or equivalent educational qualifications.
Surety Bond Requirements
- A PHP 50,000 surety bond required for each line of insurance claim adjustment.
- The bond must run concurrently with the validity of the adjuster's license.
Reportorial Requirements
- To Insurance Companies:
- Adjustment reports must be under oath and notarized.
- Fees or salaries for adjustment services may only be paid after submission of a final report within 60 days from claim filing unless prevented by uncontrollable causes.
- Failure to submit the report in time is not a valid ground for withholding payment of claims.
- To the Insurance Commission:
- Quarterly reports submitted as required by Section 331 of the Insurance Code.
- Independent adjusters must report adjustment fees for fire insurance and related lines to compute the 2% levy under the Fire Code.
Establishment of Branch or Regional Offices
- Prior notice and approval required before establishing new branches or regional offices.
- Each branch must have licensed adjusters qualified in all lines of insurance claims it intends to handle.
Prohibited Acts and Grounds for Suspension/Revocation
- Acts warranting license suspension or revocation include:
- Receiving or demanding money or other consideration from claimants for expedited or favorable settlement.
- Fraudulent or dishonest acts causing untrustworthiness.
- Company adjusters found guilty must be immediately terminated.
- Adjusters are prohibited from personally delivering checks or cash to claimants.
- Adjustment companies and insurance companies must not hold equity interests in one another.
Clearance and Other Requirements for Licensing
- Clearances required include:
- National Intelligence Coordinating Agency (NICA) clearance showing no derogatory information.
- Bureau of Internal Revenue (BIR) clearance.
- National Bureau of Investigation (NBI) clearance.
- Clearance from previous employer.
- These clearances apply to independent and public adjusters, and company adjusters must secure prior NICA clearance before appointment.
Effectivity and Supersession
- This circular supersedes previous related circulars and takes effect upon approval on December 24, 1993.