Law Summary
Capital and Surplus Requirements for Joint Venture Insurance Companies
- Joint ventures formed after this Order must have at least P75 million paid-up capital and P25 million contributed surplus.
- Applies to collaborations between existing companies and non-Philippine stockholders.
- New joint ventures (not involving existing companies) must meet the same capital and surplus thresholds.
Capitalization for New Insurance Companies
- New insurance companies, whether life or non-life, must possess at least P75 million paid-up capital and P25 million contributed surplus.
Capital Requirements for New Composite Insurance Companies
- New composite companies must have a paid-up capital of at least P150 million.
- Capital is divided equally: P75 million for life insurance and P75 million for non-life insurance.
- Contributed surplus must total at least P50 million, split evenly between life and non-life accounts (P25 million each).
Capitalization of New Reinsurance Companies
- New reinsurance companies must have a minimum paid-up capital of P120 million.
- A contributed surplus of at least P30 million is required.
Mandatory Investment of Paid-up Capital
- Domestic insurance or reinsurance companies, whether new or joint venture, must invest 25% of the required paid-up capital.
- Investment must comply with Section 203 of the Insurance Code and Section 281 for reinsurance companies.
- Required securities shall be deposited with the Insurance Commission.
Effectivity
- The Order takes effect immediately upon promulgation on March 17, 1992.