Insurance Industry Regulation and Goverce

Any contingent or unknown event causing damage to a person with insurable interest may be insured.
Spouse's consent is not required for insurance on life or health of a married person or children.
Rights in life or health policies automatically vest in person insured upon original owner's death unless otherwise specified.
Insurance on lotteries or chance tickets is prohibited.
Corporations, partnerships, and associations authorized by law may be insurers.
Anyone except a public enemy may be insured.

Insurable interest includes life and health of oneself, spouse, children, persons dependent for support, or persons under legal obligation.
Insured has the right to change the beneficiary unless waived.
Beneficiary's interest is forfeited if beneficiary willfully causes the insured's death.
Property interest insurable includes existing, inchoate, and expectant interests.
Mere contingent or expectant interests unconnected with a valid right or contract are not insurable.
Insurable interest must exist when insurance becomes effective; for property, also at loss occurrence; for life or health, not necessarily at loss.
Insurance contracts without insurable interest in property are void.

Policy must be in printed form with specified blanks and endorsements properly noted.
Policies can be issued electronically under the Electronic Commerce Act standards.
Policy must specify parties, insured amount, premium, property or life insured, interest, risks insured against, and insurance period.
Cover notes can bind insurance temporarily; policies must replace within 60 days unless extended by Commissioner.
Policies cannot contain clauses limiting actions to under one year.
Non-life insurance policies cannot be cancelled except for specific grounds with prior written notice.

Marine insurance covers vessels, goods, freight, marine liabilities, and risks of navigation and transit.
Fire insurance covers fire and allied risks.
Casualty insurance covers losses or liability from accidents excluding fire or marine types.
Life insurance covers human lives and related annuities.
Microinsurance targets protection of the poor with capped premiums and benefits.

Includes partnerships, cooperatives, and corporations including government entities except mutual benefit associations.
Companies require certificate of authority; issuance contingent on qualifications and fit and proper management.
Minimum capital and net worth requirements set by Commissioner with phased increases specified.
Foreign insurers must have power of attorney in the Philippines and comply with investment reserve requirements.

Companies must maintain adequate solvency based on international standards.
Admitted assets include cash, investments, secured loans, policy loans, reinsurance recoverables.
Non-admitted assets include goodwill, prepaid charges, and furniture.
Investments must be secured by real estate mortgages, government bonds, corporate bonds, equities with specified limits.

Life insurers must annually value outstanding policies and hold reserves accordingly.
Non-life insurers maintain reserves for unearned premiums.
Limits on single risk retention not to exceed 20% of net worth.

Only authorized insurers can accept reinsurances within limits.
Reinsurance to foreign unauthorized insurers allowed under conditions including resident agents.
Ceding companies must notify the Commissioner of reinsurance treaties and changes.

Licensing required for agents, brokers, and adjusters, including passing competency exams.
Brokers must maintain bonds and professional liability insurance.
Fiduciary responsibility for premiums collected by agents and brokers.
Prohibitions against unlicensed solicitation and misrepresentations.

Unfair claims practices prohibited.
Life insurance proceeds payable within 60 days after death; other claims within 30/90 days depending on loss ascertainment.
Interest awarded for delayed payments unless based on fraud.
Fraudulent claims subject to fines and imprisonment.

Commissioner to examine companies annually or as needed.
Authority to suspend or revoke companies unable to maintain solvency or with hazardous operations.
Conservators can be appointed to preserve and restore companies.
Insolvency leads to receivership or liquidation following regulatory and judicial oversight.

Creation of Security Fund for claims against insolvent insurers, funded by contributions from insurers.
Compulsory motor vehicle liability insurance with set indemnity limits, penalties for non-compliance.
Self-regulatory organizations may be registered and regulated by the Commissioner with rules to ensure fairness and compliance.
Commissioner appointed for 6-year term with powers to enforce laws, supervise industry, impose sanctions, adjudicate claims.
Fees prescribed for licenses, certificates, renewals, and filings.
Penal provisions for offenses not otherwise provided with fines and imprisonment.