Republic Act No. 132 June 14, 1947
AN ACT TO ALLOW THE MEMBERS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM OPTION TO CONVERT THEIR POLICIES INTO PAID-UP POLICIES AND APPLY FOR NEW INSURANCE
Section 1. Any provision of the existing law to the contrary notwithstanding, a member of the Government Service Insurance System whose policy therein was in force on December thirty-first, one thousand nine hundred forty-one, may convert within three months from the date of approval of this Act said policy into a paid-up policy as of December thirty-first, one thousand nine hundred forty-one.
Section 2. A member of the System who converts his policy pursuant to section one of this Act shall be insured again in the System in accordance with his application as approved by the System and without medical examination on the last day of the month he is re-employed in a Government entity or instrumentality and on said day the payment of the personal and the Government shares of the premiums on his insurance shall begin, provided that membership...
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Republic Acts
AN ACT TO ALLOW THE MEMBERS OP THE GOVERNMENT SERVICE INSURANCE SYSTEM OPTION TO CONVERT THEIR POLICIES INTO PAID-UP POLICIES AND APPLY FOR NEW INSURANCE.
Republic Act No. 132
Summary of Republic Act No. 132
Conversion of Existing Policies to Paid-Up Policies (Section 1):
- Members of the Government Service Insurance System whose policies were in force on December 31, 1941, may convert their policies into paid-up policies as of that date within 3 months from the approval of this Act.
Obtaining New Insurance (Section 2):
- Members who convert their policies under Section 1 can be insured again in the System without medical examination on the last day of the month they are re-employed in a government entity or instrumentality, provided that membership insurance is compulsory.
- Premium payments (personal and government shares) for the new insurance will begin on the day of re-employment.
- If not re-employed or if insurance continuance is not compulsory, a new insurance not exceeding the maximum allowed amount while in service may be issued upon application within the prescribed time and conditions.
Option for Lapsed or Surrendered Policies (Section 3):
- Members whose policies lapsed or were surrendered after December 31, 1941, but before the approval of this Act, may avail of the option to convert to a paid-up policy within 3 months after the approval of this Act.
- For surrendered policies, the cash surrender value received must be refunded with 4% interest per annum, or considered as a policy loan if not refunded when exercising the option.
- These members are also entitled to a new insurance as provided in Section 2.
Payment of Government Share of Premiums (Section 4):
- The national government, its agencies or entities, and local governments that had members who will not convert their insurance under Section 1 shall pay their corresponding share of premiums for the period from December 31, 1941, to February 28, 1945, within 15 years from the approval of this Act, either in one lump sum or in annual installments.
- These entities are required to include the necessary sums in their annual appropriations.
- All premiums due during the mentioned period shall bear 4% interest per annum from the due date.
Effectivity (Section 5):
- This Act shall take effect on its approval (June 14, 1947).
Conversion of Existing Policies to Paid-Up Policies (Section 1):
- Members of the Government Service Insurance System whose policies were in force on December 31, 1941, may convert their policies into paid-up policies as of that date within 3 months from the approval of this Act.
Obtaining New Insurance (Section 2):
- Members who convert their policies under Section 1 can be insured again in the System without medical examination on the last day of the month they are re-employed in a government entity or instrumentality, provided that membership insurance is compulsory.
- Premium payments (personal and government shares) for the new insurance will begin on the day of re-employment.
- If not re-employed or if insurance continuance is not compulsory, a new insurance not exceeding the maximum allowed amount while in service may be issued upon application within the prescribed time and conditions.
Option for Lapsed or Surrendered Policies (Section 3):
- Members whose policies lapsed or were surrendered after December 31, 1941, but before the approval of this Act, may avail of the option to convert to a paid-up policy within 3 months after the approval of this Act.
- For surrendered policies, the cash surrender value received must be refunded with 4% interest per annum, or considered as a policy loan if not refunded when exercising the option.
- These members are also entitled to a new insurance as provided in Section 2.
Payment of Government Share of Premiums (Section 4):
- The national government, its agencies or entities, and local governments that had members who will not convert their insurance under Section 1 shall pay their corresponding share of premiums for the period from December 31, 1941, to February 28, 1945, within 15 years from the approval of this Act, either in one lump sum or in annual installments.
- These entities are required to include the necessary sums in their annual appropriations.
- All premiums due during the mentioned period shall bear 4% interest per annum from the due date.
Effectivity (Section 5):
- This Act shall take effect on its approval (June 14, 1947).