Law Summary
Requirements for Compliance
- Insurance entities must follow the prescribed fire tariff without deviation.
- Rates and regulations in the tariff manual are binding and form the basis for fire insurance policy premiums and terms.
Penalties for Violations
- The law imposes escalating penalties for breach of the prescribed fire tariff rules:
- First Offense: A fine of PHP 500.00 per day for each policy involved, accompanied by a stern warning.
- Second Offense: Suspension of the license to write fire insurance for a period of fifteen (15) days.
- Third Offense: Revocation of the license to write fire insurance, effectively prohibiting the insurer from engaging in fire insurance business.
Enforcement and Authority
- The Insurance Commissioner is vested with authority to enforce compliance and impose penalties.
- The circular letter serves as an official directive to all affected parties to adhere to the revised tariff and uphold regulatory standards.
Legal Effectiveness
- The directive was adopted and promulgated on November 6, 1997, formalizing its effectivity and enforceability.
- This regulatory framework ensures uniformity and fairness in the fire insurance market, protecting both insurers and insured parties by maintaining standardized pricing and practices.