INSURANCE CODE

Case Overview and Summary

GENERAL PROVISIONS

• Defines key terms such as "contract of insurance", "doing an insurance business", and "Commissioner" (Sections 2-3)

THE CONTRACT OF INSURANCE

• Outlines what may be insured, including contingent or unknown events that may cause loss or liability (Section 3)
• Prohibits insurance for lotteries or games of chance (Sections 4-5)
• Specifies parties who can be insurers or insured (Sections 6-8)
• Defines insurable interest and requirements for it to exist (Sections 10-25)
• Outlines provisions related to concealment, representation, warranties, and premiums (Sections 26-82)
• Covers loss, notice of loss, double insurance, and reinsurance (Sections 83-98)

CLASSES OF INSURANCE

Marine Insurance:
• Defines marine insurance and insurable interests (Sections 99-106)
• Outlines provisions related to concealment, representation, warranties, voyage and deviation, loss, abandonment, and measure of indemnity (Sections 107-166)

Fire Insurance:
• Defines fire insurance and provisions related to alterations, valuation, and pledging of policies (Sections 167-173)

Casualty Insurance:
• Defines casualty insurance (Section 174)

Suretyship:
• Defines suretyship and provisions related to liability, premiums, and application of Civil Code (Sections 175-178)

Life Insurance:
• Defines life insurance and provisions related to transfer, notice, measure of indemnity, and policy requirements (Sections 179-183)

Variable Contracts:
• Defines variable contracts and outlines requirements for issuance, filing, reserves, and investments (Sections 232-240)

Claims Settlement:
• Prohibits unfair claim settlement practices and outlines penalties (Section 241)
• Specifies time limits for payment of life insurance and non-life insurance claims (Sections 242-243)
• Outlines provisions for litigation, including attorney's fees and interest (Section 244)

Examination of Companies:
• Authorizes the Commissioner to examine insurance companies and impose penalties for non-compliance (Sections 245-247)

Appointment of Conservator:
• Allows the Commissioner to appoint a conservator to manage an insurance company in certain circumstances (Section 248)

Proceedings upon Insolvency:
• Outlines the process for the Commissioner to order an insolvent insurance company to cease operations, appoint a receiver or liquidator, and distribute assets (Section 249-251)

Consolidation and Merger of Insurance Companies:
• Outlines the process for consolidation or merger of insurance companies (Sections 252-261)

Mutualization of Stock Life Insurance Companies:
• Outlines the process for a stock life insurance company to convert to a mutual life insurer (Sections 262-272)

Withdrawal of Foreign Insurance Companies:
• Outlines the process for a foreign insurance company to withdraw from the Philippines (Sections 273-279)

Professional Reinsurers:
• Defines professional reinsurers and outlines requirements for authorization and capitalization (Sections 280-281)

Holding Companies:
• Defines holding companies and outlines provisions related to registration, examination, transactions, and penalties (Sections 282-298)

SALES AGENCIES AND TECHNICAL SERVICES

Insurance Agents and Insurance Brokers:
• Outlines licensing requirements, duties, and penalties for insurance agents and brokers (Sections 299-309)

Reinsurance Brokers:
• Outlines licensing requirements and penalties for reinsurance brokers (Sections 310-312)

Resident Agents:
• Outlines registration requirements for resident agents of foreign insurers or brokers (Sections 313-317)

Non-Life Company Underwriter:
• Outlines registration requirements and duties for non-life company underwriters (Sections 318-322)

Adjusters:
• Defines independent and public adjusters and outlines licensing requirements, duties, and penalties (Sections 323-334)

Actuaries:
• Outlines accreditation requirements for actuaries employed by life insurance companies (Sections 335-338)

Rating Organization and Rate Making:
• Defines rating organizations and outlines provisions related to licensing, rate making, and penalties (Sections 339-363)

Provision Common to Agents, Brokers, and Adjusters:
• Outlines provisions related to licensing and renewal of licenses for agents, brokers, and adjusters (Section 364)

SECURITY FUND

• Establishes a Security Fund for payment of claims against insolvent insurers, funded by contributions from insurance companies (Sections 365-372)

COMPULSORY MOTOR VEHICLE LIABILITY INSURANCE

• Defines key terms related to motor vehicle liability insurance (Section 373)
• Requires motor vehicle owners and operators to maintain liability insurance or other security (Sections 374-377)
• Outlines provisions related to claims, cancellation, and penalties (Sections 378-389)

MUTUAL BENEFIT ASSOCIATIONS AND TRUSTS FOR CHARITABLE USES

Mutual Benefit Associations:
• Defines mutual benefit associations and outlines licensing, reserve, and investment requirements (Sections 390-399)
• Outlines provisions related to examination, annual statements, benefits, consolidation or merger, conversion to mutual life insurer, dissolution, and penalties (Sections 399-409)

Trusts for Charitable Uses:
• Defines trusts for charitable uses and outlines registration requirements (Sections 410-413)

THE INSURANCE COMMISSIONER

Administrative and Adjudicatory Powers:
• Outlines the duties and powers of the Insurance Commissioner, including rulemaking, enforcement, and adjudication of claims up to ₱100,000 (Sections 414-416)

Fees and Other Sources of Funds:
• Outlines fees to be collected by the Commissioner for various licenses, filings, and examinations (Section 417)
• Establishes an Insurance Fund to cover excess expenses of the Commissioner (Section 418)

MISCELLANEOUS PROVISIONS

• Outlines penalties for violations of the Code (Section 419)
• Specifies the prescription period for criminal actions (Section 420)
• Provides for transition and compliance periods for existing entities (Section 421)
• Repeals inconsistent laws and includes a separability clause (Sections 422-423)
• Specifies the effective date of the Code (Section 424)