June 16, 1960
CBP MEMORANDUM
TO : Authorized Agents
For the information and guidance of all concerned, the following are among the types of foreign exchange remittances that are covered by the term "contractual obligations" as contemplated under paragraph 2-(c) of Central Bank Circular No. 105, as defined and clarified by the Monetary Board and the Decontrol Program Committee:
1) Insurance Premia (both life and non-life) — We interpret the insurance policies involved as limited to dollar policies, since peso policies do not fall under the category of obligations calling for the payment of foreign exchange. Specifically, life insurance policies expressed in dollars or other foreign currency, as already authorized by the Monetary Board under M.B. Res. No. 673 dated May 10, 1960, may be licensed at the preferential rate. This rule would exclude life insurance policies of former nonresidents who became residents of the Philippines after December 9, 1949, premiums on which may only be licensed at the free market rate. In respect to non-life policies which, as a rule, cover a period of one year only, the...
