What is the role of Insurance Commission?
The Insurance Commission is a
government agency under the Department of Finance.
The Commission supervises and regulates the operations
of life and non-life companies, mutual benefit
associations, and trusts for charitable uses.
It issues licenses to insurance agents, general
agents, resident agents, underwriters, brokers,
adjusters and actuaries. It has also the authority
to suspend or revoke such licenses.
Why does the Government supervise the operations
of insurance companies and their representatives?
Insurance business exists to serve the public.
It is therefore charged with public interest
What is the address of the Insurance Commission?
The Insurance Commission is located
at 1071 United Nations Avenue, Ermita, Manila,
with Tel. # 523-84-61 up to 70 (Trunk Line), 525-20-15
(Office of the Insurance Commissioner), 524-47-84
(Office of the Deputy Commissioner), Fax # 522-14-34,
and E-mail firstname.lastname@example.org.
Who heads the Insurance Commission?
Insurance Commissioner – Atty. Emmanuel F. Dooc
Does the Commission have the power to adjudicate
insurance claims and complaints involving any
loss, damage or liability?
Yes. The Insurance Code, as amended,
empowers the Commission to adjudicate insurance
claims and complaints involving any loss, damage
or liability where the amount involved does not
P 100,000.00 for any single claim. Decisions or
orders of the Insurance Commission may be appealed
to the Appelate Courts.
What other complaints can be filed with the Commission?
Informal and administrative complaints
against malpractices of insurance companies or
agents may also be filed with the Commission.
The Commission is ready at all times to render
assistance in settling any controversy between
an insurance company and a policyholder relating
Are pre-need companies offering memorial service
plans, educational plans and pension plans fall
under the jurisdiction of the Insurance Commission?
Yes, pre-need companies offering
products similar to insurance are now under the
jurisdiction of the Insurance Commission by virtue of Republic Act No. 9829 known as the Pre-Need Code of the Philippines as approved on December 3, 2009.
What are the minimum qualifications required of
applicants for insurance agents’ examination?
They must be of good moral character
and must not have been convicted of any crime
involving moral turpitude and also have been trained
in the kind of insurance presently contemplated
in the license applied for.
Who may be exempted from taking the agents’
+ One who holds a valid and subsisting
certificate of authority issued by the Commissioner
+ One who has successfully completed an academic
course and/or training program satisfactory to
the Insurance Commissioner, in the kind or kinds
of insurance contemplated in the license applied
+ One who, because of his previous connection
with any insurance company, or with any office
or firm handling insurance matters is found by
the Insurance Commissioner to be trustworthy and
competent to transact the business contemplated
in the license applied for.
Who may be insured?
Anyone except a public enemy may be insured
What may be an insurable interest in life insurance
Every person has an insurable
interest in the life and health:
+ Of himself, of his spouse
and his children;
+ Of any person on whom he depends wholly or in
part for education or support; or in whom he has
a pecuniary interest;
+ Of any person under legal obligation to him
for the payment of money, or respecting property
or services, of which death or illness might delay
or prevent performance; and
+ Of any person upon whose life any estate or
interest vested in him depends.
What are the two (2) essential policy conditions
which if violated will void the entire policy?
a) Willful concealment or misrepresentation
by the insured of any material fact or circumstance
concerning the subject thereof or the interest
of the insured therein; and
b) Any fraud or false swearing by the insured
What is the difference between suretyship and
In suretyship, three persons
or entities are involved: the surety, the principal
and the obligee. In insurance, there are only
two: the insurer and the insured.
In insurance, there is a theoretical
distribution of losses over a group or classification
of risks, the insurance company assuming the losses
of the individual insured. In suretyship, no losses
is anticipated as the surety guarantees the obligation
of the principal.
In property insurance, is the insured entitled
to a return of premium if he should decide to
discontinue his policy?
Yes, to a proportionate amount corresponding
to the unexpired term of the policy; generally
under the short period scale provided for in the
May the insurance company cancel a policy? If
so, how? May the insured cancel a policy?
Yes, upon prior notice thereof
to the insured. However, no notice of cancellation
is effective unless it is based on the occurrence,
after the effective date of the policy, of one
or more of the following:
+ Non-payment of premium;
+ Conviction of a crime arising out of acts increasing
the hazard insured against;
+ discovery of fraud or material misrepresentation;
+ discovery of willful or reckless act or omission
increasing the hazard insured against;
+ physical changes in the property insured which
result in the property becoming uninsurable; or
+ determination by the Commissioner that the continuation
of the policy would place the insurer in violation
of this Code.
The insured may cancel a policy
upon notice to the insurer under the terms of
How soon may the amount of any loss or damage
for which an insurer may be liable under a non-life
policy be paid? If the insurer refuses or fails
to; pay the claim within the time prescribed by
law, may the insured collect interest for the
duration of the delay?
The amount of any loss or damage
shall be paid within 30 days after proof of loss
is received by the insurer and ascertainment of
the loss or damage is made either by agreement
between the insured and the insurer or by arbitration;
but if such ascertainment is not paid or made
within 60 days after such receipt by the insurer
of the proof of loss, then the loss or damage
shall be paid within 90 days after such receipt.
Refusal or failure to pay the loss or damage will
entitle the assured to collect interest on the
proceeds of the policy for the duration of the
delay at the rate of twice the ceiling prescribed
by the Monetary Board, unless such failure or
refusal to pay is based on the ground the claim
If the insured has any right of recovery against
another party, may he be required to assign such
right to the insurance company?
Yes, the company may require from the insured
an assignment of all rights of recovery against
any party for loss to the extent that payment
therefore is made by the company.
Once a property is insured, must the insured inform
the company of any change of the description,
occupation or construction of the property insured.
The insured must inform the company of any change
thereto, otherwise, the company would be relieved
from liability unless the insured before the occurrence
of any loss or damage obtained the sanction of
the company signified by an endorsement upon the
What is the basis of the value of the insured
property at the time of loss?
The actual cash value at the time of loss, that
is, what it would cost to replace the property.
Is it the duty of an agent to determine the value
of the property insured and the amount of insurance
to be carried? Explain.
No, the value of the property should be determined
by the insured, rather than the agent. However,
the agent should guard as far as possible against
over insurance and should check the amount of
insurance in relation to the actual value with
What are the effects of non-payment of premium?
Forfeiture of all rights under the policy.
What is Compulsory Motor Vehicle Liability Insurance?
The Insurance Code (as amended) requires this
coverage for the registration of motor vehicles.
This insurance covers passengers or third parties
who may be killed or injured as a result of accidents
arising from the use of operation of such vehicles.
The maximum amount of benefit under this policy
What is the meaning of “Authorized Driver”
in a motor vehicle policy?
An authorized driver within
the meaning of the policy is any of the following:
+ The insured; or
+ Any person driving on the Insured’s order
or with his permission.
What is the purpose of the errors and omissions
insurance policy (professional liability or professional
indemnity policy) required of insurance or reinsurance
broker before a license could be issued.
To indemnify the applicant against any claim for
breach of duty as insurance broker or reinsurance
broker, as the case may be, which may be available
against such applicant by reason of any negligent
act, error or omission.
What do you understand by the “no fault
An insurance company issuing the cover shall
pay any claim for death or bodily injuries sustained
by a passenger or third party without the necessity
of proving fault or negligence of any kind. Immediate
payment shall be made provided that the total
indemnity shall not exceed P10,000.00 upon presentation
of the following proofs of loss, namely:
1. police report of accident, and
2. death certificate and evidence sufficient to
establish the proper payee, or medical report
and evidence of medical or hospital disbursement
in respect of which refund is being claimed.
Does the “no fault claim” apply to
claims on property wherein the insurance company
is under obligation to make payment immediately?
No, because the “no fault claim”
applies only to death or bodily injuries and does
not respond to claims for third party property