Purposes and Objectives of Cooperative Insurance Societies
- Provide members with various insurance types including life insurance (with group coverage), loan protection, retirement plans, endowment, health and accident coverage.
- Cover fire insurance, motor vehicle coverage, bonding, crop and livestock protection, and equipment insurance.
- Align with the objectives under Articles 6 and 7 of the Cooperative Code.
Organization
- Only duly registered cooperatives, federations, or unions may organize cooperative insurance societies.
Membership
- Open to duly registered cooperatives of all kinds, their federations and unions.
- Includes cooperative-oriented societies and organizations which promote, organize, and develop cooperatives and cooperativism, typically non-profit entities.
Registration
- Applications must comply with R.A. 6938 and these rules.
- Filed with the Cooperative Development Authority and require favorable recommendation from the Insurance Commission.
- Existing cooperative insurance societies with proper registration must comply with these updated rules as applicable.
Capitalization
- Minimum paid-up capitalization required is Ten Million Pesos (P10,000,000) for stock and mutual life insurance companies.
- Capitalization may be lowered to not less than half of the Commission's required amount, subject to consultation with the Authority and cooperative sector.
Investments and Reserves
- Investment and reserve requirements may be adjusted liberally but cannot be reduced below half of those mandated by the Insurance Commission.
- Adjustments are made upon consultation with the Authority and cooperative sector.
Authorization
- No cooperative insurance society may transact insurance business without a Certificate of Authority from the Insurance Commission.
- The Certificate of Authority is valid until June 30 of the year following issuance unless renewed.
Suspension or Revocation of Certificate of Authority
- The Insurance Commission may suspend or revoke the Certificate of Authority after due notice and hearing for any violations of laws or regulations including provisions of the Insurance Code.
Jurisdiction of the Insurance Commission
- The Insurance Commission has jurisdiction over the organization and operation of cooperative insurance societies in regard to their insurance business.
Joint Committee
- A Joint Committee is formed for implementing these rules, composed of two representatives each from the Cooperative Development Authority and the Insurance Commission, plus one representative from the cooperative insurance sector.
- The committee is chaired by the highest-ranking representative from the Cooperative Development Authority.
Effectivity
- This Department Order takes effect 15 days after publication in two newspapers of general circulation.