Law Summary

Purpose and Background

• Explanation: This circular aims to enhance the life insurance industry in the Philippines by promoting cooperation, discipline, and harmony among life insurance companies.
• Legal Principle: Establishes a mandate for all authorized life insurance companies to join the Philippine Life Insurance Association (PLIA).

Membership Requirements

• Explanation: Membership to the PLIA is compulsory for all life insurance companies authorized to conduct business in the Philippines.

• Key Definitions:

  • Life Insurance Company: Any entity authorized by the Commission to transact life insurance business in the Philippines.
  • Philippine Life Insurance Association (PLIA): An organization aimed at representing and serving the interests of life insurance companies.

• Important Requirements:

  • Existing life insurance companies that are not members of PLIA must apply for membership.
  • New life insurance companies must apply for membership within a specified timeframe.

Application Procedure and Timeframes

• Explanation: The process for applying for membership is clearly defined.

• Timeframes:

  • Existing companies: Must apply within 30 days from September 4, 2009.
  • New companies: Must apply for membership within 30 days from the issuance of their Certificate of Authority by the Commission.

• Consequences: Failure to comply with the application requirement may result in non-compliance with the Commission's mandate.

PLIA Services

• Explanation: The PLIA is required to provide its services to all members without discrimination.
• Key Details:
  • Services include resources and support to aid member companies in compliance and operational effectiveness.

Effective Date

• Explanation: The circular is effective immediately upon adoption.
• Adoption Date: September 4, 2009.

Key Takeaways

• All authorized life insurance companies in the Philippines are mandated to join the PLIA.
• Application for membership must be completed within 30 days of the circular's issuance for existing companies and within 30 days post-Certificate of Authority for new companies.
• PLIA must provide services equitably to all members.
• The directive aims to enhance cooperation and discipline within the life insurance sector, thereby strengthening the industry as a whole.