Insurance Code of Phil

8/13/2019 Insurance Code of Phil

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PRESIDENTIAL DECREE NO. 612

December 18, 1974

ORDAINING AND INSTITUTING AN INSURANCE CODE OF THE PHILIPPINES

I, Ferdinnd E! "rc#$, Pre$iden% #& %'e P'i(i))ine$, b* +ir%e #& %'e )#-er$ in

me +e$%ed b* %'e C#n$%i%%i#n, d# 'ereb* decree nd #rder %'e

((#-in./c'nr#b(e$+ir%((-(ibrr*

GENERAL PRO0ISIONS

Sec! 1! T'i$ Decree $'(( be n#-n $ "The Insurance Code".

Sec! 2! 3'ene+er $ed in %'i$ C#de, %'e ((#-in. %erm$ $'(( '+e %'e

re$)ec%i+e menin.$ 'erein&%er $e% r%' #r indic%ed, n(e$$ %'e c#n%e%

#%'er-i$e re5ire$/c'nr#b(e$+ir%((-(ibrr*

61 A "contract of insurance" i$ n .reemen% -'ereb* #ne nder%e$ r

c#n$ider%i#n %# indemni&* n#%'er .in$% (#$$, dm.e #r (ibi(i%* ri$in. &r#m

n nn#-n #r c#n%in.en% e+en%!A c#n%rc% #& $re%*$'i) $'(( be deemed %# be n in$rnce c#n%rc%, -i%'in %'e

menin. #& %'i$ C#de, #n(* i& mde b* $re%* -'# #r -'ic', $ $c', i$ d#in.

n in$rnce b$ine$$ $ 'erein&%er )r#+ided!

62 T'e %erm "doing an insurance business" #r"transacting an insurance

business", -i%'in %'e menin. #& %'i$ C#de, $'((

inc(de/c'nr#b(e$+ir%((-(ibrr*

6 min. #r )r#)#$in. %# me, $ in$rer, n* in$rnce c#n%rc%

6b min. #r )r#)#$in. %# me, $ $re%*, n* c#n%rc% #& $re%*$'i) $

+#c%i#n nd n#% $ mere(* inciden%( %# n* #%'er (e.i%im%e b$ine$$ #r c%i+i%*

#& %'e $re%*6c d#in. n* ind #& b$ine$$, inc(din. rein$rnce b$ine$$, $)eci&ic((*

rec#.nied $ c#n$%i%%in. %'e d#in. #& n in$rnce b$ine$$ -i%'in %'e

menin. #& %'i$ C#de

6d d#in. #r )r#)#$in. %# d# n* b$ine$$ in $b$%nce e5i+(en% %# n* #& %'e

re.#in. in mnner de$i.ned %# e+de %'e )r#+i$i#n$ #& %'i$ C#de!

In %'e ))(ic%i#n #& %'e )r#+i$i#n$ #& %'i$ C#de %'e &c% %'% n# )r#&i% i$ deri+ed

&r#m %'e min. #& in$rnce c#n%rc%$, .reemen%$ #r %rn$c%i#n$ #r %'% n#

$e)r%e #r direc% c#n$ider%i#n i$ recei+ed %'erer, $'(( n#% be deemed

c#nc($i+e %# $'#- %'% %'e min. %'ere#& d#e$ n#% c#n$%i%%e %'e d#in. #r

%rn$c%in. #& n in$rnce b$ine$$!6: A$ $ed in %'i$ c#de, %'e %erm "Commissioner"men$ %'e "Insurance

Commissioner"!chanrobles virtual la librar!

C')%er 1

THE CONTRACT OF INSURANCE

Ti%(e 1

3HAT "A;


2/106

dmni&* )er$#n '+in. n in$rb(e in%ere$%, #r cre%e (ibi(i%* .in$% 'im,

m* be in$red .in$%, $b=ec% %# %'e )r#+i$i#n$ #& %'i$ c')%er!

T'e c#n$en% #& %'e '$bnd i$ n#% nece$$r* r %'e +(idi%* #& n in$rnce

)#(ic* %en #% b* mrried -#mn #n 'er (i&e #r %'% #& 'er c'i(dren!

An* min#r #& %'e .e #& ei.'%een *er$ #r m#re, m*, n#%-i%'$%ndin. $c'

min#ri%*, c#n%rc% r (i&e, 'e(%' nd cciden% in$rnce, -i%' n* in$rnce

c#m)n* d(* %'#ried %# d# b$ine$$ in %'e P'i(i))ine$, )r#+ided %'e

in$rnce i$ %en #n 'i$ #-n (i&e nd %'e bene&icir* ))#in%ed i$ %'e min#r>$

e$%%e #r %'e min#r>$ &%'er, m#%'er, '$bnd, -i&e, c'i(d, br#%'er #r $i$%er!

T'e mrried -#mn #r %'e min#r 'erein ((#-ed %# %e #% n in$rnce )#(ic*

m* eerci$e (( %'e ri.'%$ nd )ri+i(e.e$ #& n #-ner nder )#(ic*!

A(( ri.'%$, %i%(e nd in%ere$% in %'e )#(ic* #& in$rnce %en #% b* n #ri.in(

#-ner #n %'e (i&e #r 'e(%' #& min#r $'(( %#m%ic((* +e$% in %'e min#r )#n

%'e de%' #& %'e #ri.in( #-ner, n(e$$ #%'er-i$e )r#+ided r in %'e )#(ic*!

Sec! 4! T'e )recedin. $ec%i#n d#e$ n#% %'#rie n in$rnce r #r .in$% %'e

dr-in. #& n* (#%%er*, #r r #r .in$% n* c'nce #r %ice% in (#%%er* dr-in. )rie!

Sec! ?! A(( ind$ #& in$rnce re $b=ec% %# %'e )r#+i$i#n$ #& %'i$ c')%er $# &r

$ %'e )r#+i$i#n$ cn ))(*!

Ti%(e 2

PARTIES TO THE CONTRACT

Sec! @! E+er* )er$#n, )r%ner$'i), $$#ci%i#n, #r c#r)#r%i#n d(* %'#ried %#

%rn$c% in$rnce b$ine$$ $ e($e-'ere )r#+ided in %'i$ c#de, m* be n

in$rer!

Sec! 7! An*#ne ece)% )b(ic enem* m* be in$red!

Sec! 8! Un(e$$ %'e )#(ic* #%'er-i$e )r#+ide$, -'ere m#r%..#r #& )r#)er%*e&&ec%$ in$rnce in 'i$ #-n nme )r#+idin. %'% %'e (#$$ $'(( be )*b(e %# %'e

m#r%..ee, #r $$i.n$ )#(ic* #& in$rnce %# m#r%..ee, %'e in$rnce i$

deemed %# be )#n %'e in%ere$% #& %'e m#r%..#r, -'# d#e$ n#% ce$e %# be

)r%* %# %'e #ri.in( c#n%rc%, nd n* c% #& 'i$, )ri#r %# %'e (#$$, -'ic' -#(d

#%'er-i$e +#id %'e in$rnce, -i(( '+e %'e $me e&&ec%, (%'#.' %'e )r#)er%*

i$ in %'e 'nd$ #& %'e m#r%..ee, b% n* c% -'ic', nder %'e c#n%rc% #&

in$rnce, i$ %# be )errmed b* %'e m#r%..#r, m* be )errmed b* %'e

m#r%..ee %'erein nmed, -i%' %'e $me e&&ec% $ i& i% 'd been )errmed b*

%'e m#r%..#r!

Sec! 9! I& n in$rer $$en%$ %# %'e %rn$&er #& n in$rnce &r#m m#r%..#r %# m#r%..ee, nd, % %'e %ime #& 'i$ $$en%, im)#$e$ &r%'er #b(i.%i#n #n %'e

$$i.nee, min. ne- c#n%rc% -i%' 'im, %'e c% #& %'e m#r%..#r cnn#%

&&ec% %'e ri.'%$ #& $id $$i.nee!

Ti%(e :

INSURA


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6 O& 'im$e(&, #& 'i$ $)#$e nd #& 'i$ c'i(dren

6b O& n* )er$#n #n -'#m 'e de)end$ -'#((* #r in )r% r edc%i#n #r

$))#r%, #r in -'#m 'e '$ )ecnir* in%ere$%

6c O& n* )er$#n nder (e.( #b(i.%i#n %# 'im r %'e )*men% #& m#ne*, #r

re$)ec%in. )r#)er%* #r $er+ice$, #& -'ic' de%' #r i((ne$$ mi.'% de(* #r )re+en%

%'e )errmnce nd

6d O& n* )er$#n )#n -'#$e (i&e n* e$%%e #r in%ere$% +e$%ed in 'im de)end$!

Sec! 11! T'e in$red $'(( '+e %'e ri.'% %# c'n.e %'e bene&icir* 'e de$i.n%ed

in %'e )#(ic*, n(e$$ 'e '$ e)re$$(* -i+ed %'i$ ri.'% in $id )#(ic*!

Sec! 12! T'e in%ere$% #& bene&icir* in (i&e in$rnce )#(ic* $'(( be r&ei%ed

-'en %'e bene&icir* i$ %'e )rinci)(, cc#m)(ice, #r cce$$#r* in -i((&((*

brin.in. b#% %'e de%' #& %'e in$red in -'ic' e+en%, %'e nere$% re(%i+e #&

%'e in$red $'(( recei+e %'e )r#ceed$ #& $id in$rnce i& n#% #%'er-i$e

di$5(i&ied!

Sec! 1:! E+er* in%ere$% in )r#)er%*, -'e%'er re( #r )er$#n(, #r n* re(%i#n

%'ere%#, #r (ibi(i%* in re$)ec% %'ere#&, #& $c' n%re %'% c#n%em)(%ed )eri(mi.'% direc%(* dmni&* %'e in$red, i$ n in$rb(e in%ere$%!

Sec! 14! An in$rb(e in%ere$% in )r#)er%* m* c#n$i$%

in/c'nr#b(e$+ir%((-(ibrr*

6 An ei$%in. in%ere$%

6b An inc'#%e in%ere$% nded #n n ei$%in. in%ere$% #r

6c An e)ec%nc*, c#)(ed -i%' n ei$%in. in%ere$% in %'% #% #& -'ic' %'e

e)ec%nc* ri$e$!

Sec! 1?! A crrier #r de)#$i%#r* #& n* ind '$ n in$rb(e in%ere$% in %'in.

'e(d b* 'im $ $c', %# %'e e%en% #& 'i$ (ibi(i%* b% n#% %# eceed %'e +(e

%'ere#&!Sec! 1@! A mere c#n%in.en% #r e)ec%n% in%ere$% in n*%'in., n#% nded #n n

c%( ri.'% %# %'e %'in., n#r )#n n* +(id c#n%rc% r i%, i$ n#% in$rb(e!

Sec! 17! T'e me$re #& n in$rb(e in%ere$% in )r#)er%* i$ %'e e%en% %# -'ic'

%'e in$red mi.'% be dmni&ied b* (#$$ #r in=r* %'ere#&!

Sec! 18! N# c#n%rc% #r )#(ic* #& in$rnce #n )r#)er%* $'(( be enrceb(e

ece)% r %'e bene&i% #& $#me )er$#n '+in. n in$rb(e in%ere$% in %'e

)r#)er%* in$red!

Sec! 19! An in%ere$% in )r#)er%* in$red m$% ei$% -'en %'e in$rnce %e$

e&&ec%, nd -'en %'e (#$$ #ccr$, b% n#% ei$% in %'e men%ime nd in%ere$% in

%'e (i&e #r 'e(%' #& )er$#n in$red m$% ei$% -'en %'e in$rnce %e$ e&&ec%,b% need n#% ei$% %'ere&%er #r -'en %'e (#$$ #ccr$!

Sec! 2! Ece)% in %'e c$e$ $)eci&ied in %'e ne% r $ec%i#n$, nd in %'e c$e$

#& (i&e, cciden%, nd 'e(%' in$rnce, c'n.e #& in%ere$% in n* )r% #& %'in.

in$red ncc#m)nied b* c#rre$)#ndin. c'n.e in in%ere$% in %'e in$rnce,

$$)end$ %'e in$rnce %# n e5i+(en% e%en%, n%i( %'e in%ere$% in %'e %'in.

nd %'e in%ere$% in %'e in$rnce re +e$%ed in %'e $me )er$#n!

Sec! 21! A c'n.e in in%ere$% in %'in. in$red, &%er %'e #ccrrence #& n in=r*


4/106

-'ic' re$(%$ in (#$$, d#e$ n#% &&ec% %'e ri.'% #& %'e in$red %# indemni%* r

%'e (#$$!

Sec! 22! A c'n.e #& in%ere$% in #ne #r m#re $e+er( di$%inc% %'in.$, $e)r%e(*

in$red b* #ne )#(ic*, d#e$ n#% +#id %'e in$rnce $ %# %'e #%'er$!

Sec! 2:! A c'n.e #n in%ere$%, b* -i(( #r $cce$$i#n, #n %'e de%' #& %'e in$red,

d#e$ n#% +#id n in$rnce nd 'i$ in%ere$% in %'e in$rnce )$$e$ %# %'e

)er$#n %in. 'i$ in%ere$% in %'e %'in. in$red!

Sec! 24! A %rn$&er #& in%ere$% b* #ne #& $e+er( )r%ner$, =#in% #-ner$, #r

#-ner$ in c#mm#n, -'# re =#in%(* in$red, %# %'e #%'er$, d#e$ n#% +#id n

in$rnce e+en %'#.' i% '$ been .reed %'% %'e in$rnce $'(( ce$e )#n n

(ien%i#n #& %'e %'in. in$red!

Sec! 2?! E+er* $%i)(%i#n in )#(ic* #& in$rnce r %'e )*men% #& (#$$

-'e%'er %'e )er$#n in$red '$ #r '$ n#% n* in%ere$% in %'e )r#)er%* in$red,

#r %'% %'e )#(ic* $'(( be recei+ed $ )r##& #& $c' in%ere$%, nd e+er* )#(ic*

eec%ed b* -* #& .min. #r -.erin., i$ +#id!

Ti%(e 4CONCEAL"ENT

Sec! 2@! A ne.(ec% %# c#mmnic%e %'% -'ic' )r%* n#-$ nd #.'% %#

c#mmnic%e, i$ c((ed c#nce(men%!

Sec! 27! A c#nce(men% -'e%'er in%en%i#n( #r nin%en%i#n( en%i%(e$ %'e in=red

)r%* %# re$cind c#n%rc% #& in$rnce! 6A$ mended b*


5/106

)r#)#$ed c#n%rc%, #r in min. 'i$ in5irie$!

Sec! :2! Ec' )r%* %# c#n%rc% #& in$rnce i$ b#nd %# n#- (( %'e .ener(

c$e$ -'ic' re #)en %# 'i$ in5ir*, e5((* -i%' %'% #& %'e #%'er, nd -'ic'

m* &&ec% %'e )#(i%ic( #r m%eri( )eri($ c#n%em)(%ed nd (( .ener( $.e$

#& %rde!

Sec! ::! T'e ri.'% %# inrm%i#n #& m%eri( &c%$ m* be -i+ed, ei%'er b* %'e

%erm$ #& %'e in$rnce #r b* ne.(ec% %# me in5ir* $ %# $c' &c%$, -'ere %'e*

re di$%inc%(* im)(ied in #%'er &c%$ #& -'ic' inrm%i#n i$ c#mmnic%ed!

Sec! :4! Inrm%i#n #& %'e n%re #r m#n% #& %'e in%ere$% #& #ne in$red need

n#% be c#mmnic%ed n(e$$ in n$-er %# n in5ir*, ece)% $ )re$cribed b*

$ec%i#n &i&%*B#ne!

Sec! :?! Nei%'er )r%* %# c#n%rc% #& in$rnce i$ b#nd %# c#mmnic%e, e+en

)#n in5ir*, inrm%i#n #& 'i$ #-n =d.men% )#n %'e m%%er$ in 5e$%i#n!

Ti%(e ?

REPRESENTATION

Sec! :@! A re)re$en%%i#n m* be #r( #r -ri%%en!Sec! :7! A re)re$en%%i#n m* be mde % %'e %ime #&, #r bere, i$$nce #& %'e

)#(ic*!

Sec! :8! T'e (n..e #& re)re$en%%i#n i$ %# be in%er)re%ed b* %'e $me r(e$

$ %'e (n..e #& c#n%rc%$ in .ener(!

Sec! :9! A re)re$en%%i#n $ %# %'e &%re i$ %# be deemed )r#mi$e, n(e$$ i%

))er$ %'% i% -$ mere(* $%%emen% #& be(ie& #r e)ec%%i#n!

Sec! 4! A re)re$en%%i#n cnn#% 5(i&* n e)re$$ )r#+i$i#n in c#n%rc% #&

in$rnce, b% i% m* 5(i&* n im)(ied -rrn%*!

Sec! 41! A re)re$en%%i#n m* be (%ered #r -i%'dr-n bere %'e in$rnce i$

e&&ec%ed, b% n#% &%er-rd$!Sec! 42! A re)re$en%%i#n m$% be )re$med %# re&er %# %'e d%e #n -'ic' %'e

c#n%rc% .#e$ in%# e&&ec%!

Sec! 4:! 3'en )er$#n in$red '$ n# )er$#n( n#-(ed.e #& &c%, 'e m*

ne+er%'e(e$$ re)e% inrm%i#n -'ic' 'e '$ )#n %'e $b=ec%, nd -'ic' 'e

be(ie+e$ %# be %re, -i%' %'e e)(n%i#n %'% 'e d#e$ $# #n %'e inrm%i#n #&

#%'er$ #r 'e m* $bmi% %'e inrm%i#n, in i%$ -'#(e e%en%, %# %'e in$rer nd

in nei%'er c$e i$ 'e re$)#n$ib(e r i%$ %r%', n(e$$ i% )r#ceed$ &r#m n .en% #&

%'e in$red, -'#$e d%* i% i$ %# .i+e %'e inrm%i#n!

Sec! 44! A re)re$en%%i#n i$ %# be deemed &($e -'en %'e &c%$ &i( %# c#rre$)#nd

-i%' i%$ $$er%i#n$ #r $%i)(%i#n$!Sec! 4?! I& re)re$en%%i#n i$ &($e in m%eri( )#in%, -'e%'er &&irm%i+e #r

)r#mi$$#r*, %'e in=red )r%* i$ en%i%(ed %# re$cind %'e c#n%rc% &r#m %'e %ime

-'en %'e re)re$en%%i#n bec#me$ &($e! T'e ri.'% %# re$cind .rn%ed b* %'i$

C#de %# %'e in$rer i$ -i+ed b* %'e cce)%nce #& )remim )*men%$ de$)i%e

n#-(ed.e #& %'e .r#nd r re$ci$$i#n! 6A$ mended b*


6/106

%'e m%eri(i%* #& c#nce(men%!

Sec! 47! T'e )r#+i$i#n$ #& %'i$ c')%er ))(* $ -e(( %# m#di&ic%i#n #&

c#n%rc% #& in$rnce $ %# i%$ #ri.in( rm%i#n!

Sec! 48! 3'ene+er ri.'% %# re$cind c#n%rc% #& in$rnce i$ .i+en %# %'e

in$rer b* n* )r#+i$i#n #& %'i$ c')%er, $c' ri.'% m$% be eerci$ed )re+i#$

%# %'e c#mmencemen% #& n c%i#n #n %'e c#n%rc%!

A&%er )#(ic* #& (i&e in$rnce mde )*b(e #n %'e de%' #& %'e in$red $'((

'+e been in rce drin. %'e (i&e%ime #& %'e in$red r )eri#d #& %-# *er$

&r#m %'e d%e #& i%$ i$$e #r #& i%$ ($% rein$%%emen%, %'e in$rer cnn#% )r#+e

%'% %'e )#(ic* i$ +#id b ini%i# #r i$ re$cindib(e b* re$#n #& %'e &rd(en%

c#nce(men% #r mi$re)re$en%%i#n #& %'e in$red #r 'i$ .en%!

Ti%(e @

THE POLIC;

Sec! 49! T'e -ri%%en in$%rmen% in -'ic' c#n%rc% #& in$rnce i$ $e% r%', i$

c((ed )#(ic* #& in$rnce!

Sec! ?! T'e )#(ic* $'(( be in )rin%ed rm -'ic' m* c#n%in b(n $)ce$ ndn* -#rd, )'r$e, c($e, mr, $i.n, $*mb#(, $i.n%re, nmber, #r -#rd

nece$$r* %# c#m)(e%e %'e c#n%rc% #& in$rnce $'(( be -ri%%en #n %'e b(n

$)ce$ )r#+ided %'erein!

An* rider, c($e, -rrn%* #r end#r$emen% )r)#r%in. %# be )r% #& %'e c#n%rc%

#& in$rnce nd -'ic' i$ )$%ed #r %%c'ed %# $id )#(ic* i$ n#% bindin. #n %'e

in$red, n(e$$ %'e de$cri)%i+e %i%(e #r nme #& %'e rider, c($e, -rrn%* #r

end#r$emen% i$ ($# men%i#ned nd -ri%%en #n %'e b(n $)ce$ )r#+ided in %'e

)#(ic*!

Un(e$$ ))(ied r b* %'e in$red #r #-ner, n* rider, c($e, -rrn%* #r

end#r$emen% i$$ed &%er %'e #ri.in( )#(ic* $'(( be c#n%er$i.ned b* %'ein$red #r #-ner, -'ic' c#n%er$i.n%re $'(( be %en $ 'i$ .reemen% %# %'e

c#n%en%$ #& $c' rider, c($e, -rrn%* #r end#r$emen%!

Gr#) in$rnce nd .r#) nni%* )#(icie$, '#-e+er, m* be %*)e-ri%%en nd

need n#% be in )rin%ed rm!

Sec! ?1! A )#(ic* #& in$rnce m$% $)eci&*/c'nr#b(e$+ir%((-(ibrr*

6 T'e )r%ie$ be%-een -'#m %'e c#n%rc% i$ mde

6b T'e m#n% %# be in$red ece)% in %'e c$e$ #& #)en #r rnnin. )#(icie$

6c T'e )remim, #r i& %'e in$rnce i$ #& c'rc%er -'ere %'e ec% )remim

i$ #n(* de%erminb(e )#n %'e %ermin%i#n #& %'e c#n%rc%, $%%emen% #& %'e

b$i$ nd r%e$ )#n -'ic' %'e &in( )remim i$ %# be de%ermined6d T'e )r#)er%* #r (i&e in$red

6e T'e in%ere$% #& %'e in$red in )r#)er%* in$red, i& 'e i$ n#% %'e b$#(%e

#-ner %'ere#&

6& T'e ri$$ in$red .in$% nd

6. T'e )eri#d drin. -'ic' %'e in$rnce i$ %# c#n%ine!

Sec! ?2! C#+er n#%e$ m* be i$$ed %# bind in$rnce %em)#rri(* )endin. %'e

i$$nce #& %'e )#(ic*! 3i%'in $i%* d*$ &%er %'e i$$e #& %'e c#+er n#%e,


7/106

)#(ic* $'(( be i$$ed in (ie %'ere#&, inc(din. -i%'in i%$ %erm$ %'e iden%ic(

in$rnce b#nd nder %'e c#+er n#%e nd %'e )remim %'erer!chanrobles

virtual la librar!

C#+er n#%e$ m* be e%ended #r rene-ed be*#nd $c' $i%* d*$ -i%' %'e

-ri%%en ))r#+( #& %'e C#mmi$$i#ner i& 'e de%ermine$ %'% $c' e%en$i#n i$ n#%

c#n%rr* %# nd i$ n#% r %'e )r)#$e #& +i#(%in. n* )r#+i$i#n$ #& %'i$ C#de!

T'e C#mmi$$i#ner m* )r#m(.%e r(e$ nd re.(%i#n$ .#+ernin. $c'

e%en$i#n$ r %'e )r)#$e #& )re+en%in. $c' +i#(%i#n$ nd m* b* $c' r(e$

nd re.(%i#n$ di$)en$e -i%' %'e re5iremen% #& -ri%%en ))r#+( b* 'im in %'e

c$e #& e%en$i#n in c#m)(ince -i%' $c' r(e$ nd re.(%i#n$!

Sec! ?:! T'e in$rnce )r#ceed$ $'(( be ))(ied ec($i+e(* %# %'e )r#)er

in%ere$% #& %'e )er$#n in -'#$e nme #r r -'#$e bene&i% i% i$ mde n(e$$

#%'er-i$e $)eci&ied in %'e )#(ic*!

Sec! ?4! 3'en n in$rnce c#n%rc% i$ eec%ed -i%' n .en% #r %r$%ee $ %'e

in$red, %'e &c% %'% 'i$ )rinci)( #r bene&icir* i$ %'e re( )r%* in in%ere$% m*

be indic%ed b* de$cribin. %'e in$red $ .en% #r %r$%ee, #r b* #%'er .ener(-#rd$ in %'e )#(ic*!

Sec! ??! T# render n in$rnce e&&ec%ed b* #ne )r%ner #r )r%B#-ner,

))(icb(e %# %'e in%ere$% #& 'i$ c#B)r%ner$ #r #%'er )r%B#-ner$, i% i$ nece$$r*

%'% %'e %erm$ #& %'e )#(ic* $'#(d be $c' $ re ))(icb(e %# %'e =#in% #r

c#mm#n in%ere$%!

Sec! ?@! 3'en %'e de$cri)%i#n #& %'e in$red in )#(ic* i$ $# .ener( %'% i% m*

c#m)re'end n* )er$#n #r n* c($$ #& )er$#n$, #n(* 'e -'# cn $'#- %'% i%

-$ in%ended %# inc(de 'im cn c(im %'e bene&i% #& %'e )#(ic*!

Sec! ?7! A )#(ic* m* be $# &rmed %'% i% -i(( inre %# %'e bene&i% #&

-'#m$#e+er, drin. %'e c#n%innce #& %'e ri$, m* bec#me %'e #-ner #& %'ein%ere$% in$red!

Sec! ?8! T'e mere %rn$&er #& %'in. in$red d#e$ n#% %rn$&er %'e )#(ic*, b%

$$)end$ i% n%i( %'e $me )er$#n bec#me$ %'e #-ner #& b#%' %'e )#(ic* nd %'e

%'in. in$red!

Sec! ?9! A )#(ic* i$ ei%'er #)en, +(ed #r rnnin.!

Sec! @! An #)en )#(ic* i$ #ne in -'ic' %'e +(e #& %'e %'in. in$red i$ n#%

.reed )#n, b% i$ (e&% %# be $cer%ined in c$e #& (#$$!

Sec! @1! A +(ed )#(ic* i$ #ne -'ic' e)re$$e$ #n i%$ &ce n .reemen% %'% %'e

%'in. in$red $'(( be +(ed % $)eci&ic $m!

Sec! @2! A rnnin. )#(ic* i$ #ne -'ic' c#n%em)(%e$ $cce$$i+e in$rnce$, nd-'ic' )r#+ide$ %'% %'e #b=ec% #& %'e )#(ic* m* be &r#m %ime %# %ime de&ined,

e$)eci((* $ %# %'e $b=ec%$ #& in$rnce, b* ddi%i#n( $%%emen%$ #r

ind#r$emen%$!

Sec! @:! A c#ndi%i#n, $%i)(%i#n, #r .reemen% in n* )#(ic* #& in$rnce,

(imi%in. %'e %ime r c#mmencin. n c%i#n %'erender %# )eri#d #& (e$$ %'n

#ne *er &r#m %'e %ime -'en %'e c$e #& c%i#n ccre$, i$ +#id!

Sec! @4! N# )#(ic* #& in$rnce #%'er %'n (i&e $'(( be cnce((ed b* %'e in$rer


8/106

ece)% )#n )ri#r n#%ice %'ere#& %# %'e in$red, nd n# n#%ice #& cnce((%i#n

$'(( be e&&ec%i+e n(e$$ i% i$ b$ed #n %'e #ccrrence, &%er %'e e&&ec%i+e d%e #&

%'e )#(ic*, #& #ne #r m#re #& %'e ((#-in./c'nr#b(e$+ir%((-(ibrr*

6 n#nB)*men% #& )remim

6b c#n+ic%i#n #& crime ri$in. #% #& c%$ incre$in. %'e 'rd in$red

.in$%

6c di$c#+er* #& &rd #r m%eri( mi$re)re$en%%i#n

6d di$c#+er* #& -i((&( #r rec(e$$ c%$ #r #mi$$i#n$ incre$in. %'e 'rd

in$red .in$%

6e )'*$ic( c'n.e$ in %'e )r#)er%* in$red -'ic' re$(% in %'e )r#)er%*

bec#min. nin$rb(e #r

6& de%ermin%i#n b* %'e C#mmi$$i#ner %'% %'e c#n%in%i#n #& %'e )#(ic*

-#(d +i#(%e #r -#(d )(ce %'e in$rer in +i#(%i#n #& %'i$ C#de!

Sec! @?! A(( n#%ice$ #& cnce((%i#n men%i#ned in %'e )recedin. $ec%i#n $'(( be in

-ri%in., mi(ed #r de(i+ered %# %'e nmed in$red % %'e ddre$$ $'#-n in %'e

)#(ic*, nd $'(( $%%e 6 -'ic' #& %'e .r#nd$ $e% r%' in $ec%i#n $i%*Br i$re(ied )#n nd 6b %'%, )#n -ri%%en re5e$% #& %'e nmed in$red, %'e in$rer

-i(( &rni$' %'e &c%$ #n -'ic' %'e cnce((%i#n i$ b$ed!

Sec! @@! In c$e #& in$rnce #%'er %'n (i&e, n(e$$ %'e in$rer % (e$% r%*B&i+e

d*$ in d+nce #& %'e end #& %'e )#(ic* )eri#d mi($ #r de(i+er$ %# %'e nmed

in$red % %'e ddre$$ $'#-n in %'e )#(ic* n#%ice #& i%$ in%en%i#n n#% %# rene-

%'e )#(ic* #r %# c#ndi%i#n i%$ rene-( )#n redc%i#n #& (imi%$ #r e(imin%i#n #&

c#+er.e$, %'e nmed in$red $'(( be en%i%(ed %# rene- %'e )#(ic* )#n

)*men% #& %'e )remim de #n %'e e&&ec%i+e d%e #& %'e rene-(! An* )#(ic*

-ri%%en r %erm #& (e$$ %'n #ne *er $'(( be c#n$idered $ i& -ri%%en r

%erm #& #ne *er! An* )#(ic* -ri%%en r %erm (#n.er %'n #ne *er #r n*)#(ic* -i%' n# &ied e)ir%i#n d%e $'(( be c#n$idered $ i& -ri%%en r

$cce$$i+e )#(ic* )eri#d$ #r %erm$ #& #ne *er!

Ti%(e 7

3ARRANTIES

Sec! @7! A -rrn%* i$ ei%'er e)re$$ed #r im)(ied!

Sec! @8! A -rrn%* m* re(%e %# %'e )$%, %'e )re$en%, %'e &%re, #r %# n* #r

(( #& %'e$e!

Sec! @9! N# )r%ic(r rm #& -#rd$ i$ nece$$r* %# cre%e -rrn%*!

Sec! 7! 3i%'#% )re=dice %# $ec%i#n &i&%*B#ne, e+er* e)re$$ -rrn%*, mde %

#r bere %'e eec%i#n #& )#(ic*, m$% be c#n%ined in %'e )#(ic* i%$e(&, #r inn#%'er in$%rmen% $i.ned b* %'e in$red nd re&erred %# in %'e )#(ic* $ min.

)r% #& i%!

Sec! 71! A $%%emen% in )#(ic* #& m%%er re(%in. %# %'e )er$#n #r %'in. in$red,

#r %# %'e ri$, $ &c%, i$ n e)re$$ -rrn%* %'ere#&!

Sec! 72! A $%%emen% in )#(ic* -'ic' im)r%$ %'% i% i$ in%ended %# d# #r n#% %#

d# %'in. -'ic' m%eri((* &&ec%$ %'e ri$, i$ -rrn%* %'% $c' c% #r

#mi$$i#n $'(( %e )(ce!


9/106

Sec! 7:! 3'en, bere %'e %ime rri+e$ r %'e )errmnce #& -rrn%*

re(%in. %# %'e &%re, (#$$ in$red .in$% '))en$, #r )errmnce bec#me$

n(-&( % %'e )(ce #& %'e c#n%rc%, #r im)#$$ib(e, %'e #mi$$i#n %# &(&i(( %'e

-rrn%* d#e$ n#% +#id %'e )#(ic*!

Sec! 74! T'e +i#(%i#n #& m%eri( -rrn%*, #r #%'er m%eri( )r#+i$i#n #&

)#(ic*, #n %'e )r% #& ei%'er )r%* %'ere%#, en%i%(e$ %'e #%'er %# re$cind!

Sec! 7?! A )#(ic* m* dec(re %'% +i#(%i#n #& $)eci&ied )r#+i$i#n$ %'ere#& $'((

+#id i%, #%'er-i$e %'e brec' #& n imm%eri( )r#+i$i#n d#e$ n#% +#id %'e

)#(ic*!

Sec! 7@! A brec' #& -rrn%* -i%'#% &rd mere(* e#ner%e$ n in$rer &r#m

%'e %ime %'% i% #ccr$, #r -'ere i% i$ br#en in i%$ ince)%i#n, )re+en%$ %'e )#(ic*

&r#m %%c'in. %# %'e ri$!

Ti%(e 8

PRE"IU"

Sec! 77! An in$rer i$ en%i%(ed %# )*men% #& %'e )remim $ $##n $ %'e %'in.

in$red i$ e)#$ed %# %'e )eri( in$red .in$%! N#%-i%'$%ndin. n* .reemen%%# %'e c#n%rr*, n# )#(ic* #r c#n%rc% #& in$rnce i$$ed b* n in$rnce

c#m)n* i$ +(id nd bindin. n(e$$ nd n%i( %'e )remim %'ere#& '$ been

)id, ece)% in %'e c$e #& (i&e #r n ind$%ri( (i&e )#(ic* -'ene+er %'e .rce

)eri#d )r#+i$i#n ))(ie$!

Sec! 78! An cn#-(ed.men% in )#(ic* #r c#n%rc% #& in$rnce #r %'e recei)% #&

)remim i$ c#nc($i+e e+idence #& i%$ )*men%, $# &r $ %# me %'e )#(ic*

bindin., n#%-i%'$%ndin. n* $%i)(%i#n %'erein %'% i% $'(( n#% be bindin. n%i(

%'e )remim i$ c%((* )id!

Sec! 79! A )er$#n in$red i$ en%i%(ed %# re%rn #& )remim, $

((#-$/c'nr#b(e$+ir%((-(ibrr*6 T# %'e -'#(e )remim i& n# )r% #& 'i$ in%ere$% in %'e %'in. in$red be

e)#$ed %# n* #& %'e )eri($ in$red .in$%

6b 3'ere %'e in$rnce i$ mde r de&ini%e )eri#d #& %ime nd %'e in$red

$rrender$ 'i$ )#(ic*, %# $c' )#r%i#n #& %'e )remim $ c#rre$)#nd$ -i%' %'e

ne)ired %ime, % )r# r% r%e, n(e$$ $'#r% )eri#d r%e '$ been .reed

)#n nd ))er$ #n %'e &ce #& %'e )#(ic*, &%er dedc%in. &r#m %'e -'#(e

)remim n* c(im r (#$$ #r dm.e nder %'e )#(ic* -'ic' '$ )re+i#$(*

ccred Pr#+ided, T'% n# '#(der #& (i&e in$rnce )#(ic* m* +i( 'im$e(& #&

%'e )ri+i(e.e$ #& %'i$ )r.r)' -i%'#% $&&icien% c$e $ #%'er-i$e )r#+ided

b* (-!

Sec! 8! I& )eri( in$red .in$% '$ ei$%ed, nd %'e in$rer '$ been (ib(e r

n* )eri#d, '#-e+er $'#r%, %'e in$red i$ n#% en%i%(ed %# re%rn #& )remim$, $#

&r $ %'% )r%ic(r ri$ i$ c#ncerned!

Sec! 81! A )er$#n in$red i$ en%i%(ed %# re%rn #& %'e )remim -'en %'e c#n%rc%

i$ +#idb(e, #n cc#n% #& &rd #r mi$re)re$en%%i#n #& %'e in$rer, #r #& 'i$

.en%, #r #n cc#n% #& &c%$, %'e ei$%ence #& -'ic' %'e in$red -$ i.n#rn%


10/106

-i%'#% 'i$ &(% #r -'en b* n* de&(% #& %'e in$red #%'er %'n c%( &rd,

%'e in$rer ne+er incrred n* (ibi(i%* nder %'e )#(ic*!

Sec! 82! In c$e #& n #+erBin$rnce b* $e+er( in$rer$, %'e in$red i$ en%i%(ed

%# r%b(e re%rn #& %'e )remim, )r#)#r%i#ned %# %'e m#n% b* -'ic' %'e

..re.%e $m in$red in (( %'e )#(icie$ eceed$ %'e in$rb(e +(e #& %'e %'in.

% ri$!

Ti%(e 9

LOSS

Sec! 8:! An .reemen% n#% %# %rn$&er %'e c(im #& %'e in$red .in$% %'e

in$rer &%er %'e (#$$ '$ '))ened, i$ +#id i& mde bere %'e (#$$ ece)% $

#%'er-i$e )r#+ided in %'e c$e #& (i&e in$rnce!

Sec! 84! Un(e$$ #%'er-i$e )r#+ided b* %'e )#(ic*, n in$rer i$ (ib(e r (#$$ #&

-'ic' )eri( in$red .in$% -$ %'e )r#im%e c$e, (%'#.' )eri( n#%

c#n%em)(%ed b* %'e c#n%rc% m* '+e been rem#%e c$e #& %'e (#$$ b% 'e

i$ n#% (ib(e r (#$$ -'ic' %'e )eri( in$red .in$% -$ #n(* rem#%e c$e!

Sec! 8?! An in$rer i$ (ib(e -'ere %'e %'in. in$red i$ re$ced &r#m )eri(in$red .in$% %'% -#(d #%'er-i$e '+e c$ed (#$$, i&, in %'e c#r$e #&

$c' re$ce, %'e %'in. i$ e)#$ed %# )eri( n#% in$red .in$%, -'ic'

)ermnen%(* de)ri+e$ %'e in$red #& i%$ )#$$e$$i#n, in -'#(e #r in )r% #r -'ere

(#$$ i$ c$ed b* e&r%$ %# re$ce %'e %'in. in$red &r#m )eri( in$red

.in$%!

Sec! 8@! 3'ere )eri( i$ e$)eci((* ece)%ed in c#n%rc% #& in$rnce, (#$$,

-'ic' -#(d n#% '+e #ccrred b% r $c' )eri(, i$ %'ereb* ece)%ed (%'#.'

%'e immedi%e c$e #& %'e (#$$ -$ )eri( -'ic' -$ n#% ece)%ed!

Sec! 87! An in$rer i$ n#% (ib(e r (#$$ c$ed b* %'e -i((&( c% #r %'r#.' %'e

c#nni+nce #& %'e in$red b% 'e i$ n#% e#ner%ed b* %'e ne.(i.ence #& %'ein$red, #r #& %'e in$rnce .en%$ #r #%'er$!

Ti%(e 1

NOTICE OF LOSS

Sec! 88! In c$e #& (#$$ )#n n in$rnce .in$% &ire, n in$rer i$ e#ner%ed,

i& n#%ice %'ere#& be n#% .i+en %# 'im b* n in$red, #r $#me )er$#n en%i%(ed %#

%'e bene&i% #& %'e in$rnce, -i%'#% nnece$$r* de(*!

Sec! 89! 3'en )re(iminr* )r##& #& (#$$ i$ re5ired b* )#(ic*, %'e in$red i$

n#% b#nd %# .i+e $c' )r##& $ -#(d be nece$$r* in c#r% #& =$%ice b% i% i$

$&&icien% r 'im %# .i+e %'e be$% e+idence -'ic' 'e '$ in 'i$ )#-er % %'e

%ime!Sec! 9! A(( de&ec%$ in n#%ice #& (#$$, #r in )re(iminr* )r##& %'ere#&, -'ic' %'e

in$red mi.'% remed*, nd -'ic' %'e in$rer #mi%$ %# $)eci&* %# 'im, -i%'#%

nnece$$r* de(*, $ .r#nd$ #& #b=ec%i#n, re -i+ed!

Sec! 91! De(* in %'e )re$en%%i#n %# n in$rer #& n#%ice #r )r##& #& (#$$ i$

-i+ed i& c$ed b* n* c% #& 'im, #r i& 'e #mi%$ %# %e #b=ec%i#n )r#m)%(* nd

$)eci&ic((* )#n %'% .r#nd!

Sec! 92! I& %'e )#(ic* re5ire$, b* -* #& )re(iminr* )r##& #& (#$$, %'e cer%i&ic%e


11/106

#r %e$%im#n* #& )er$#n #%'er %'n %'e in$red, i% i$ $&&icien% r %'e in$red %#

$e re$#nb(e di(i.ence %# )r#cre i%, nd in c$e #& %'e re&$( #& $c' )er$#n

%# .i+e i%, %'en %# &rni$' re$#nb(e e+idence %# %'e in$rer %'% $c' re&$(

-$ n#% indced b* n* =$% .r#nd$ #& di$be(ie& in %'e &c%$ nece$$r* %# be

cer%i&ied #r %e$%i&ied!

Ti%(e 11

DOU


12/106

"ARINE INSURANCE

SbBTi%(e 1B A

DEFINITION

Sec! 99! "rine In$rnce inc(de$/c'nr#b(e$+ir%((-(ibrr*

61 In$rnce .in$% (#$$ #& #r dm.e %#/c'nr#b(e$+ir%((-(ibrr*

6 0e$$e($, cr&%, ircr&%, +e'ic(e$, .##d$, &rei.'%$, cr.#e$, merc'ndi$e,

e&&ec%$, di$br$emen%$, )r#&i%$, m#ne*$, $ecri%ie$, c'#$e$ in c%i#n, e+idence$

#& deb%$, +(b(e ))er$, b#%%#mr*, nd re$)#nden%i in%ere$%$ nd (( #%'er

ind$ #& )r#)er%* nd in%ere$%$ %'erein, in re$)ec% %#, ))er%inin. %# #r in

c#nnec%i#n -i%' n* nd (( ri$$ #r )eri($ #& n+i.%i#n, %rn$i% #r

%rn$)#r%%i#n, #r -'i(e bein. $$emb(ed, )ced, cr%ed, b(ed, c#m)re$$ed #r

$imi(r(* )re)red r $'i)men% #r -'i(e -i%in. $'i)men%, #r drin. n*

de(*$, $%#r.e, %rn$'i)men%, #r re$'i)men% inciden% %'ere%#, inc(din. -r

ri$$, mrine bi(der>$ ri$$, nd (( )er$#n( )r#)er%* &(#%er ri$$

6b Per$#n #r )r#)er%* in c#nnec%i#n -i%' #r ))er%inin. %# mrine, in(ndmrine, %rn$i% #r %rn$)#r%%i#n in$rnce, inc(din. (ibi(i%* r (#$$ #& #r

dm.e ri$in. #% #& #r in c#nnec%i#n -i%' %'e c#n$%rc%i#n, re)ir, #)er%i#n,

min%ennce #r $e #& %'e $b=ec% m%%er #& $c' in$rnce 6b% n#% inc(din.

(i&e in$rnce #r $re%* b#nd$ n#r in$rnce .in$% (#$$ b* re$#n #& b#di(*

in=r* %# n* )er$#n ri$in. #% #& #-ner$'i), min%ennce, #r $e #&

%#m#bi(e$

6c Preci#$ $%#ne$, =e-e($, =e-e(r*, )reci#$ me%($, -'e%'er in c#r$e #&

%rn$)#r%%i#n #r #%'er-i$e

6d


13/106

Sec! 12! Frei.'%.e, in %'e $en$e #& )#(ic* #& mrine in$rnce, $i.ni&ie$ ((

%'e bene&i%$ deri+ed b* %'e #-ner, ei%'er &r#m %'e c'r%erin. #& %'e $'i) #r i%$

em)(#*men% r %'e crri.e #& 'i$ #-n .##d$ #r %'#$e #& #%'er$!

Sec! 1:! T'e #-ner #& $'i) '$ n in$rb(e in%ere$% in e)ec%ed &rei.'%.e

-'ic' cc#rdin. %# %'e #rdinr* nd )r#bb(e c#r$e #& %'in.$ 'e -#(d '+e

erned b% r %'e in%er+en%i#n #& )eri( in$red .in$% #r #%'er )eri( inciden%

%# %'e +#*.e!

Sec! 14! T'e in%ere$% men%i#ned in %'e ($% $ec%i#n ei$%$, in c$e #& c'r%er

)r%*, -'en %'e $'i) '$ br#en .r#nd #n %'e c'r%ered +#*.e! I& )rice i$ %#

be )id r %'e crri.e #& .##d$ i% ei$%$ -'en %'e* re c%((* #n b#rd, #r

%'ere i$ $#me c#n%rc% r )%%in. %'em #n b#rd, nd b#%' $'i) nd .##d$ re

red* r %'e $)eci&ied +#*.e!

Sec! 1?! One -'# '$ n in%ere$% in %'e %'in. &r#m -'ic' )r#&i%$ re e)ec%ed

%# )r#ceed '$ n in$rb(e in%ere$% in %'e )r#&i%$!

Sec! 1@! T'e c'r%erer #& $'i) '$ n in$rb(e in%ere$% in i%, %# %'e e%en%

%'% 'e i$ (ib(e %# be dmni&ied b* i%$ (#$$!SbBTi%(e 1BC

CONCEAL"ENT

Sec! 17! In mrine in$rnce ec' )r%* i$ b#nd %# c#mmnic%e, in ddi%i#n

%# -'% i$ re5ired b* $ec%i#n %-en%*Bei.'%, (( %'e inrm%i#n -'ic' 'e

)#$$e$$e$, m%eri( %# %'e ri$, ece)% $c' $ i$ men%i#ned in Sec%i#n %'ir%*,

nd %# $%%e %'e ec% nd -'#(e %r%' in re(%i#n %# (( m%%er$ %'% 'e

re)re$en%$, #r )#n in5ir* di$c(#$e$ #r $$me$ %# di$c(#$e!

Sec! 18! In mrine in$rnce, inrm%i#n #& %'e be(ie& #r e)ec%%i#n #& %'ird

)er$#n, in re&erence %# m%eri( &c%, i$ m%eri(!

Sec! 19! A )er$#n in$red b* c#n%rc% #& mrine in$rnce i$ )re$med %#'+e n#-(ed.e, % %'e %ime #& in$rin., #& )ri#r (#$$, i& %'e inrm%i#n mi.'%

)#$$ib(* '+e rec'ed 'im in %'e $( m#de #& %rn$mi$$i#n nd % %'e $(

r%e #& c#mmnic%i#n!

Sec! 11! A c#nce(men% in mrine in$rnce, in re$)ec% %# n* #& %'e ((#-in.

m%%er$, d#e$ n#% +i%i%e %'e en%ire c#n%rc%, b% mere(* e#ner%e$ %'e in$rer

&r#m (#$$ re$(%in. &r#m %'e ri$ c#nce(ed/c'nr#b(e$+ir%((-(ibrr*

6 T'e n%i#n( c'rc%er #& %'e in$red

6b T'e (ibi(i%* #& %'e %'in. in$red %# c)%re nd de%en%i#n

6c T'e (ibi(i%* %# $eire &r#m brec' #& rei.n (-$ #& %rde

6d T'e -n% #& nece$$r* d#cmen%$6e T'e $e #& &($e nd $im(%ed ))er$!

SbBTi%(e 1BD

REPRESENTATION

Sec! 111! I& re)re$en%%i#n b* )er$#n in$red b* c#n%rc% #& mrine

in$rnce, i$ in%en%i#n((* &($e in n* m%eri( re$)ec%, #r in re$)ec% #& n* &c%

#n -'ic' %'e c'rc%er nd n%re #& %'e ri$ de)end$, %'e in$rer m* re$cind

%'e en%ire c#n%rc%!


14/106

Sec! 112! T'e e+en%( &($i%* #& re)re$en%%i#n $ %# e)ec%%i#n d#e$ n#%, in

%'e b$ence #& &rd, +#id c#n%rc% #& mrine in$rnce!

SbBTi%(e 1BE

I"PLIED 3ARRANTIES

Sec! 11:! In e+er* mrine in$rnce )#n $'i) #r &rei.'%, #r &rei.'%.e, #r

)#n n* %'in. -'ic' i$ %'e $b=ec% #& mrine in$rnce, -rrn%* i$ im)(ied

%'% %'e $'i) i$ $e-#r%'*!

Sec! 114! A $'i) i$ $e-#r%'* -'en re$#nb(* &i% %# )errm %'e $er+ice nd %#

enc#n%er %'e #rdinr* )eri($ #& %'e +#*.e c#n%em)(%ed b* %'e )r%ie$ %# %'e

)#(ic*!

Sec! 11?! An im)(ied -rrn%* #& $e-#r%'ine$$ i$ c#m)(ied -i%' i& %'e $'i) be

$e-#r%'* % %'e %ime #& %'e #& c#mmencemen% #& %'e ri$, ece)% in %'e

((#-in. c$e$/c'nr#b(e$+ir%((-(ibrr*

6 3'en %'e in$rnce i$ mde r $)eci&ied (en.%' #& %ime, %'e im)(ied

-rrn%* i$ n#% c#m)(ied -i%' n(e$$ %'e $'i) be $e-#r%'* % %'e

c#mmencemen% #& e+er* +#*.e i% nder%e$ drin. %'% %ime6b 3'en %'e in$rnce i$ )#n %'e cr.# -'ic', b* %'e %erm$ #& %'e )#(ic*,

de$cri)%i#n #& %'e +#*.e, #r e$%b(i$'ed c$%#m #& %'e %rde, i$ %# be

%rn$'i))ed % n in%ermedi%e )#r%, %'e im)(ied -rrn%* i$ n#% c#m)(ied -i%'

n(e$$ ec' +e$$e( )#n -'ic' %'e cr.# i$ $'i))ed, #r %rn$'i))ed, be

$e-#r%'* % %'e c#mmencemen% #& ec' )r%ic(r +#*.e!

Sec! 11@! A -rrn%* #& $e-#r%'ine$$ e%end$ n#% #n(* %# %'e c#ndi%i#n #& %'e

$%rc%re #& %'e $'i) i%$e(&, b% re5ire$ %'% i% be )r#)er(* (den, nd )r#+ided

-i%' c#m)e%en% m$%er, $&&icien% nmber #& c#m)e%en% #&&icer$ nd $emen,

nd %'e re5i$i%e ))r%ennce$ nd e5i)men%, $c' $ b(($%$, cb(e$ nd

nc'#r$, c#rd.e nd $i($, #d, -%er, &e( nd (i.'%$, nd #%'er nece$$r* #r)r#)er $%#re$ nd im)(emen%$ r %'e +#*.e!

Sec! 117! 3'ere di&&eren% )#r%i#n$ #& %'e +#*.e c#n%em)(%ed b* )#(ic* di&&er

in re$)ec% %# %'e %'in.$ re5i$i%e %# me %'e $'i) $e-#r%'* %'erer,

-rrn%* #& $e-#r%'ine$$ i$ c#m)(ied -i%' i&, % %'e c#mmencemen% #& ec'

)#r%i#n, %'e $'i) i$ $e-#r%'* -i%' re&erence %# %'% )#r%i#n!

Sec! 118! 3'en %'e $'i) bec#me$ n$e-#r%'* drin. %'e +#*.e %# -'ic' n

in$rnce re(%e$, n nre$#nb(e de(* in re)irin. %'e de&ec% e#ner%e$ %'e

in$rer #n $'i) #r $'i)#-ner>$ in%ere$% &r#m (ibi(i%* &r#m n* (#$$ ri$in.

%'ere&r#m!

Sec! 119! A $'i) -'ic' i$ $e-#r%'* r %'e )r)#$e #& n in$rnce )#n %'e$'i) m*, ne+er%'e(e$$, b* re$#n #& bein. n&i%%ed %# recei+e %'e cr.#, be

n$e-#r%'* r %'e )r)#$e #& %'e in$rnce )#n %'e cr.#!

Sec! 12! 3'ere %'e n%i#n(i%* #r ne%r(i%* #& $'i) #r cr.# i$ e)re$$(*

-rrn%ed, i% i$ im)(ied %'% %'e $'i) -i(( crr* %'e re5i$i%e d#cmen%$ %# $'#-

$c' n%i#n(i%* #r ne%r(i%* nd %'% i% -i(( n#% crr* n* d#cmen%$ -'ic' c$%

re$#nb(e $$)ici#n %'ere#n!

SbBTi%(e 1BF


15/106

THE 0O;AGE AND DE0IATION

Sec! 121! 3'en %'e +#*.e c#n%em)(%ed b* mrine in$rnce )#(ic* i$

de$cribed b* %'e )(ce$ #& be.innin. nd endin., %'e +#*.e in$red in #ne

-'ic' c#nrm$ %# %'e c#r$e #& $i(in. &ied b* mercn%i(e $.e be%-een %'#$e

)(ce$!

Sec! 122! I& %'e c#r$e #& $i(in. i$ n#% &ied b* mercn%i(e $.e, %'e +#*.e

in$red b* mrine in$rnce )#(ic* i$ %'% -* be%-een %'e )(ce$ $)eci&ied,

-'ic' %# m$%er #& #rdinr* $i(( nd di$cre%i#n, -#(d men %'e m#$% n%r(,

direc% nd d+n%.e#$!

Sec! 12:! De+i%i#n i$ de)r%re &r#m %'e c#r$e #& %'e +#*.e in$red,

men%i#ned in %'e ($% %-# $ec%i#n$, #r n nre$#nb(e de(* in )r$in. %'e

+#*.e #r %'e c#mmencemen% #& n en%ire(* di&&eren% +#*.e!

Sec! 124! A de+i%i#n i$ )r#)er/c'nr#b(e$+ir%((-(ibrr*

6 3'en c$ed b* circm$%nce$ #+er -'ic' nei%'er %'e m$%er n#r %'e #-ner

#& %'e $'i) '$ n* c#n%r#(

6b 3'en nece$$r* %# c#m)(* -i%' -rrn%*, #r %# +#id )eri(, -'e%'er #rn#% %'e )eri( i$ in$red .in$%

6c 3'en mde in .##d &i%', nd )#n re$#nb(e .r#nd$ #& be(ie& in i%$

nece$$i%* %# +#id )eri( #r

6d 3'en mde in .##d &i%', r %'e )r)#$e #& $+in. 'mn (i&e #r re(ie+in.

n#%'er +e$$e( in di$%re$$!

Sec! 12?! E+er* de+i%i#n n#% $)eci&ied in %'e ($% $ec%i#n i$ im)r#)er!

Sec! 12@! An in$rer i$ n#% (ib(e r n* (#$$ '))enin. %# %'e %'in. in$red

$b$e5en% %# n im)r#)er de+i%i#n!

SbBTi%(e 1BG

LOSSSec! 127! A (#$$ m* be ei%'er %#%( #r )r%i(!

Sec! 128! E+er* (#$$ -'ic' i$ n#% %#%( i$ )r%i(!

Sec! 129! A %#%( (#$$ m* be ei%'er c%( #r c#n$%rc%i+e!

Sec! 1:! An c%( %#%( (#$$ i$ c$e b*/c'nr#b(e$+ir%((-(ibrr*

6 A %#%( de$%rc%i#n #& %'e %'in. in$red

6b T'e irre%rie+b(e (#$$ #& %'e %'in. b* $inin., #r b* bein. br#en )

6c An* dm.e %# %'e %'in. -'ic' render$ i% +(e(e$$ %# %'e #-ner r %'e

)r)#$e r -'ic' 'e 'e(d i% #r

6d An* #%'er e+en% -'ic' e&&ec%i+e(* de)ri+e$ %'e #-ner #& %'e )#$$e$$i#n, %

%'e )#r% #& de$%in%i#n, #& %'e %'in. in$red!Sec! 1:1! A c#n$%rc%i+e %#%( (#$$ i$ #ne -'ic' .i+e$ %# )er$#n in$red ri.'%

%# bnd#n, nder Sec%i#n #ne 'ndred %'ir%*Bnine!

Sec! 1:2! An c%( (#$$ m* be )re$med &r#m %'e c#n%ined b$ence #& $'i)

-i%'#% bein. 'erd #&! T'e (en.%' #& %ime -'ic' i$ $&&icien% %# ri$e %'i$

)re$m)%i#n de)end$ #n %'e circm$%nce$ #& %'e c$e!

Sec! 1::! 3'en $'i) i$ )re+en%ed, % n in%ermedi%e )#r%, &r#m c#m)(e%in. %'e

+#*.e, b* %'e )eri($ in$red .in$%, %'e (ibi(i%* #& mrine in$rer #n %'e


16/106

cr.# c#n%ine$ &%er %'e* re %'$ re$'i))ed!

N#%'in. in %'i$ $ec%i#n $'(( )re+en% n in$rer &r#m re5irin. n ddi%i#n(

)remim i& %'e 'rd be incre$ed b* %'i$ e%en$i#n #& (ibi(i%*!

Sec! 1:4! In ddi%i#n %# %'e (ibi(i%* men%i#ned in %'e ($% $ec%i#n, mrine

in$rer i$ b#nd r dm.e$, e)en$e$ #& di$c'r.in., $%#r.e, re$'i)men%,

e%r &rei.'%.e, nd (( #%'er e)en$e$ incrred in $+in. cr.# re$'i))ed

)r$n% %# %'e ($% $ec%i#n, ) %# %'e m#n% in$red!

N#%'in. in %'i$ #r in %'e )recedin. $ec%i#n $'(( render mrine in$rer (ib(e

r n* m#n% in ece$$ #& %'e in$red +(e #r, i& %'ere be n#ne, #& %'e

in$rb(e +(e!

Sec! 1:?! U)#n n c%( %#%( (#$$, )er$#n in$red i$ en%i%(ed %# )*men%

-i%'#% n#%ice #& bnd#nmen%!

Sec! 1:@! 3'ere i% '$ been .reed %'% n in$rnce )#n )r%ic(r %'in., #r

c($$ #& %'in.$, $'(( be &ree &r#m )r%ic(r +er.e, mrine in$rer i$ n#%

(ib(e r n* )r%ic(r +er.e (#$$ n#% de)ri+in. %'e in$red #& %'e )#$$e$$i#n,

% %'e )#r% #& de$%in%i#n, #& %'e -'#(e #& $c' %'in., #r c($$ #& %'in.$, e+en%'#.' i% bec#me$ en%ire(* -#r%'(e$$ b% $c' in$rer i$ (ib(e r 'i$

)r#)#r%i#n #& (( .ener( +er.e (#$$ $$e$$ed )#n %'e %'in. in$red!

Sec! 1:7! An in$rnce c#n&ined in %erm$ %# n c%( (#$$ d#e$ n#% c#+er

c#n$%rc%i+e %#%( (#$$, b% c#+er$ n* (#$$, -'ic' nece$$ri(* re$(%$ in

de)ri+in. %'e in$red #& %'e )#$$e$$i#n, % %'e )#r% #& de$%in%i#n, #& %'e en%ire

%'in. in$red!

SbBTi%(e 1BH

A


17/106

cnn#% in n* c$e be bnd#ned n(e$$ %'e $'i) i$ ($# bnd#ned!

Sec! 14! An bnd#nmen% m$% be nei%'er )r%i( n#r c#ndi%i#n(!

Sec! 141! An bnd#nmen% m$% be mde -i%'in re$#nb(e %ime &%er recei)%

#& re(ib(e inrm%i#n #& %'e (#$$, b% -'ere %'e inrm%i#n i$ #& d#b%&(

c'rc%er, %'e in$red i$ en%i%(ed %# re$#nb(e %ime %# me in5ir*!

Sec! 142! 3'ere %'e inrm%i#n )#n -'ic' n bnd#nmen% '$ been mde

)r#+e$ inc#rrec%, #r %'e %'in. in$red -$ $# &r re$%#red -'en %'e

bnd#nmen% -$ mde %'% %'ere -$ %'en in &c% n# %#%( (#$$, %'e

bnd#nmen% bec#me$ ine&&ec%(!

Sec! 14:! Abnd#nmen% i$ mde b* .i+in. n#%ice %'ere#& %# %'e in$rer, -'ic'

m* be d#ne #r((*, #r in -ri%in. Pr#+ided, T'% i& %'e n#%ice be d#ne #r((*,

-ri%%en n#%ice #& $c' bnd#nmen% $'(( be $bmi%%ed -i%'in $e+en d*$ &r#m

$c' #r( n#%ice!

Sec! 144! A n#%ice #& bnd#nmen% m$% be e)(ici%, nd m$% $)eci&* %'e

)r%ic(r c$e #& %'e bnd#nmen%, b% need $%%e #n(* en#.' %# $'#- %'%

%'ere i$ )r#bb(e c$e %'erer, nd need n#% be cc#m)nied -i%' )r##& #&in%ere$% #r #& (#$$!

Sec! 14?! An bnd#nmen% cn be $$%ined #n(* )#n %'e c$e $)eci&ied in %'e

n#%ice %'ere#&!

Sec! 14@! An bnd#nmen% i$ e5i+(en% %# %rn$&er b* %'e in$red #& 'i$

in%ere$% %# %'e in$rer, -i%' (( %'e c'nce$ #& rec#+er* nd indemni%*!

Sec! 147! I& mrine in$rer )*$ r (#$$ $ i& i% -ere n c%( %#%( (#$$, 'e

i$ en%i%(ed %# -'%e+er m* remin #& %'e %'in. in$red, #r i%$ )r#ceed$ #r

$(+.e, $ i& %'ere 'd been rm( bnd#nmen%!

Sec! 148! U)#n n bnd#nmen%, c%$ d#ne in .##d &i%' b* %'#$e -'# -ere

.en%$ #& %'e in$red in re$)ec% %# %'e %'in. in$red, $b$e5en% %# %'e (#$$, re% %'e ri$ #& %'e in$rer nd r 'i$ bene&i%!

Sec! 149! 3'ere n#%ice #& bnd#nmen% i$ )r#)er(* .i+en, %'e ri.'%$ #& %'e

in$red re n#% )re=diced b* %'e &c% %'% %'e in$rer re&$e$ %# cce)% %'e

bnd#nmen%!

Sec! 1?! T'e cce)%nce #& n bnd#nmen% m* be ei%'er e)re$$ #r im)(ied

&r#m %'e c#ndc% #& %'e in$rer! T'e mere $i(ence #& %'e in$rer r n

nre$#nb(e (en.%' #& %ime &%er n#%ice $'(( be c#n$%red $ n cce)%nce!

Sec! 1?1! T'e cce)%nce #& n bnd#nmen%, -'e%'er e)re$$ #r im)(ied, i$

c#nc($i+e )#n %'e )r%ie$, nd dmi%$ %'e (#$$ nd %'e $&&icienc* #& %'e

bnd#nmen%!Sec! 1?2! An bnd#nmen% #nce mde nd cce)%ed i$ irre+#cb(e, n(e$$ %'e

.r#nd )#n -'ic' i% -$ mde )r#+e$ %# be nnded!

Sec! 1?:! On n cce)%ed bnd#nmen% #& $'i), &rei.'%.e erned )re+i#$ %#

%'e (#$$ be(#n.$ %# %'e in$rer #& $id &rei.'%.e b% &rei.'%.e $b$e5en%(*

erned be(#n.$ %# %'e in$rer #& %'e $'i)!

Sec! 1?4! I& n in$rer re&$e$ %# cce)% +(id bnd#nmen%, 'e i$ (ib(e $

)#n c%( %#%( (#$$, dedc%in. &r#m %'e m#n% n* )r#ceed$ #& %'e %'in.


18/106

in$red -'ic' m* '+e c#me %# %'e 'nd$ #& %'e in$red!

Sec! 1??! I& )er$#n in$red #mi%$ %# bnd#n, 'e m* ne+er%'e(e$$ rec#+er 'i$

c%( (#$$!

SbBTi%(e 1BI

"EASURE OF INDE"NIT;

Sec! 1?@! A +(%i#n in )#(ic* #& mrine in$rnce in c#nc($i+e be%-een %'e

)r%ie$ %'ere%# in %'e d=$%men% #& ei%'er )r%i( #r %#%( (#$$, i& %'e in$red

'$ $#me in%ere$% % ri$, nd %'ere i$ n# &rd #n 'i$ )r% ece)% %'% -'en

%'in. '$ been '*)#%'ec%ed b* b#%%#mr* #r re$)#nden%i, bere i%$ in$rnce,

nd -i%'#% %'e n#-(ed.e #& %'e )er$#n c%((* )r#crin. %'e in$rnce, 'e

m* $'#- %'e re( +(e!


19/106


20/106

in$rin. n* bi(din. #r $%rc%re .in$% &ire, 'e m* re5ire $c' bi(din. #r

$%rc%re %# be emined b* n inde)enden% ))ri$er nd %'e +(e #& %'e

in$red>$ in%ere$% %'erein m* %'en be &ied $ be%-een %'e in$rer nd %'e

in$red! T'e c#$% #& $c' emin%i#n $'(( be )id r b* %'e in$red! A c($e

$'(( be in$er%ed in $c' )#(ic* $%%in. $b$%n%i((* %'% %'e +(e #& %'e

in$red>$ in%ere$% in $c' bi(din. #r $%rc%re '$ been %'$ &ied! In %'e

b$ence #& n* c'n.e incre$in. %'e ri$ -i%'#% %'e c#n$en% #& %'e in$rer #r

#& &rd #n %'e )r% #& %'e in$red, %'en in c$e #& %#%( (#$$ nder $c' )#(ic*,

%'e -'#(e m#n% $# in$red )#n %'e in$red>$ in%ere$% in $c' bi(din. #r

$%rc%re, $ $%%ed in %'e )#(ic* )#n -'ic' %'e in$rer$ '+e recei+ed

)remim, $'(( be )id, nd in c$e #& )r%i( (#$$ %'e &(( m#n% #& %'e )r%i(

(#$$ $'(( be $# )id, nd in c$e %'ere re %-# #r m#re )#(icie$ c#+erin. %'e

in$red>$ in%ere$% %'erein, ec' )#(ic* $'(( c#n%rib%e )r# r% %# %'e )*men% #&

$c' -'#(e #r )r%i( (#$$! $ (ibi(i%*

in$rnce, m#%#r +e'ic(e (ibi(i%* in$rnce, )(%e .($$in$rnce, br.(r* nd

%'e&% in$rnce, )er$#n( cciden% nd 'e(%' in$rnce $ -ri%%en b* n#nB(i&e

in$rnce c#m)nie$, nd #%'er $b$%n%i((* $imi(r ind$ #& in$rnce!

Ti%(e 4

SURET;SHIP

Sec! 17?! A c#n%rc% #& $re%*$'i) i$ n .reemen% -'ereb* )r%* c((ed %'e

$re%* .rn%ee$ %'e )errmnce b* n#%'er )r%* c((ed %'e )rinci)( #r

#b(i.#r #& n #b(i.%i#n #r nder%in. in &+#r #& %'ird )r%* c((ed %'e#b(i.ee! I% inc(de$ #&&ici( rec#.nince$, $%i)(%i#n$, b#nd$ #r nder%in.$

i$$ed b* n* c#m)n* b* +ir%e #& nd nder %'e )r#+i$i#n$ #& Ac% N#! ?:@, $

mended b* Ac% N#! 22@!

Sec! 17@! T'e (ibi(i%* #& %'e $re%* #r $re%ie$ $'(( be =#in% nd $e+er( -i%' %'e

#b(i.#r nd $'(( be (imi%ed %# %'e m#n% #& %'e b#nd! I% i$ de%ermined $%ric%(*

b* %'e %erm$ #& %'e c#n%rc% #& $re%*$'i) in re(%i#n %# %'e )rinci)( c#n%rc%

be%-een %'e #b(i.#r nd %'e #b(i.ee!6A$ mended b* Pre$iden%i( Decree N#!


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14??!

Sec! 177! T'e $re%* i$ en%i%(ed %# )*men% #& %'e )remim $ $##n $ %'e

c#n%rc% #& $re%*$'i) #r b#nd i$ )er&ec%ed nd de(i+ered %# %'e #b(i.#r! N#

c#n%rc% #& $re%*$'i) #r b#ndin. $'(( be +(id nd bindin. n(e$$ nd n%i( %'e

)remim %'erer '$ been )id, ece)% -'ere %'e #b(i.ee '$ cce)%ed %'e

b#nd, in -'ic' c$e %'e b#nd bec#me$ +(id nd enrceb(e irre$)ec%i+e #&

-'e%'er #r n#% %'e )remim '$ been )id b* %'e #b(i.#r %# %'e

$re%*/ Provided, T'% i& %'e c#n%rc% #& $re%*$'i) #r b#nd i$ n#% cce)%ed b*, #r

&i(ed -i%' %'e #b(i.ee, %'e $re%* $'(( c#((ec% #n(* re$#nb(e m#n%, n#%

eceedin. &i&%* )er cen%m #& %'e )remim de %'ere#n $ $er+ice &ee )($ %'e

c#$% #& $%m)$ #r #%'er %e$ im)#$ed r %'e i$$nce #& %'e c#n%rc% #r

b#nd/ Provided, however,T'% i& %'e n#nBcce)%nce #& %'e b#nd be de %# %'e

&(% #r ne.(i.ence #& %'e $re%*, n# $c' $er+ice &ee, $%m)$ #r %e$ $'(( be

c#((ec%ed!

In %'e c$e #& c#n%inin. b#nd, %'e #b(i.#r $'(( )* %'e $b$e5en% nn(

)remim $ i% &(($ de n%i( %'e c#n%rc% #& $re%*$'i) i$ cnce((ed b* %'e#b(i.ee #r b* %'e C#mmi$$i#ner #r b* c#r% #& c#m)e%en% =ri$dic%i#n, $ %'e

c$e m* be! chanrobles virtual la librar!

Sec! 178! Per%inen% )r#+i$i#n$ #& %'e Ci+i( C#de #& %'e P'i(i))ine$$'(( be ))(ied

in $))(e%#r* c'rc%er -'ene+er nece$$r* in in%er)re%in. %'e )r#+i$i#n$ #&

c#n%rc% #& $re%*$'i)!

Ti%(e ?

LIFE INSURANCE

Sec! 179! Li&e in$rnce i$ in$rnce #n 'mn (i+e$ nd in$rnce ))er%inin.

%'ere%# #r c#nnec%ed %'ere-i%'!

Sec! 18! An in$rnce )#n (i&e m* be mde )*b(e #n %'e de%' #& %'e)er$#n, #r #n 'i$ $r+i+in. $)eci&ied )eri#d, #r #%'er-i$e c#n%in.en%(* #n %'e

c#n%innce #r ce$$%i#n #& (i&e!

E+er* c#n%rc% #r )(ed.e r %'e )*men% #& end#-men%$ #r nni%ie$ $'(( be

c#n$idered (i&e in$rnce c#n%rc% r )r)#$e #& %'i$ C#de!

In %'e b$ence #& =dici( .rdin, %'e &%'er, #r in %'e (%%er>$ b$ence #r

inc)ci%*, %'e m#%'er, #r n* min#r, -'# i$ n in$red #r bene&icir* nder

c#n%rc% #& (i&e, 'e(%' #r cciden% in$rnce, m* eerci$e, in be'(& #& $id

min#r, n* ri.'% nder %'e )#(ic*, -i%'#% nece$$i%* #& c#r% %'#ri%* #r %'e

.i+in. #& b#nd, -'ere %'e in%ere$% #& %'e min#r in %'e )r%ic(r c% in+#(+ed

d#e$ n#% eceed %-en%* %'#$nd )e$#$! Sc' ri.'% m* inc(de, b% $'(( n#% be(imi%ed %#, #b%inin. )#(ic* (#n, $rrenderin. %'e )#(ic*, recei+in. %'e

)r#ceed$ #& %'e )#(ic*, nd .i+in. %'e min#r>$ c#n$en% %# n* %rn$c%i#n #n %'e

)#(ic*!

Sec! 18BA! T'e in$rer in (i&e in$rnce c#n%rc% $'(( be (ib(e in c$e #&

$icide$ #n(* -'en i% i$ c#mmi%%ed &%er %'e )#(ic* '$ been in rce r )eri#d

#& %-# *er$ &r#m %'e d%e #& i%$ i$$e #r #& i%$ ($% rein$%%emen%, n(e$$ %'e

)#(ic* )r#+ide$ $'#r%er )eri#d/ Provided, however, T'% $icide c#mmi%%ed in
http://www.chanrobles.com/civilcodeofthephilippines.htmhttp://www.chanrobles.com/civilcodeofthephilippines.htm


22/106

%'e $%%e #& in$ni%* $'(( be c#m)en$b(e re.rd(e$$ #& %'e d%e #&

c#mmi$$i#n! 6A$ mended b*


23/106

E+er* )er$#n, )r%ner$'i), #r $$#ci%i#n recei+in. n* $c' cer%i&ic%e #&

%'#ri%* $'(( be $b=ec% %# %'e in$rnce (-$ #& %'e P'i(i))ine$ nd %# %'e

=ri$dic%i#n nd $)er+i$i#n #& %'e C#mmi$$i#ner in %'e $me mnner $ i& n

in$rnce c#r)#r%i#n %'#ried b* %'e (-$ #& %'e P'i(i))ine$ %# en..e in %'e

b$ine$$ #& in$rnce $)eci&ied in %'e cer%i&ic%e!

Sec! 187! N# in$rnce c#m)n* $'(( %rn$c% n* in$rnce b$ine$$ in %'e

P'i(i))ine$ n%i( &%er i% $'(( '+e #b%ined cer%i&ic%e #& %'#ri%* r %'%

)r)#$e &r#m %'e C#mmi$$i#ner )#n ))(ic%i#n %'erer nd )*men% b* %'e

c#m)n* c#ncerned #& %'e &ee$ 'erein&%er )re$cribed!

T'e C#mmi$$i#ner m* re&$e %# i$$e cer%i&ic%e #& %'#ri%* %# n* in$rnce

c#m)n* i&, in 'i$ =d.men%, $c' re&$( -i(( be$% )r#m#%e %'e in%ere$% #& %'e

)e#)(e #& %'i$ c#n%r*! N# $c' cer%i&ic%e #& %'#ri%* $'(( be .rn%ed %# n*

$c' c#m)n* n%i( %'e C#mmi$$i#ner $'(( '+e $%i$&ied 'im$e(& b* $c'

emin%i#n $ 'e m* me nd $c' e+idence $ 'e m* re5ire %'% $c'

c#m)n* i$ 5(i&ied b* %'e (-$ #& %'e P'i(i))ine$ %# %rn$c% b$ine$$ %'erein,

%'% %'e .rn% #& $c' %'#ri%* ))er$ %# be =$%i&ied in %'e (i.'% #& ec#n#micre5iremen%$, nd %'% %'e direc%i#n nd dmini$%r%i#n, $ -e(( $ %'e in%e.ri%*

nd re$)#n$ibi(i%* #& %'e #r.nier$ nd dmini$%r%#r$, %'e &innci(

#r.ni%i#n nd %'e m#n% #& c)i%(, n#%-i%'$%ndin. %'e )r#+i$i#n$ #&

$ec%i#n #ne 'ndred ei.'%*Bei.'%, re$#nb(* $$re %'e $&e%* #& %'e in%ere$%$

#& %'e )#(ic*'#(der$ nd %'e )b(ic!

In #rder %# min%in %'e 5(i%* #& %'e mn.emen% #& %'e in$rnce c#m)nie$

nd &rd be%%er )r#%ec%i#n %# )#(ic*'#(der$ nd %'e )b(ic in .ener(, n*

)er$#n #& .##d m#r( c'rc%er, n5e$%i#ned in%e.ri%* nd rec#.nied

c#m)e%ence m* be e(ec%ed #r ))#in%ed direc%#r #r #&&icer #& in$rnce

c#m)nie$! T'e C#mmi$$i#ner $'(( )re$cribe %'e 5(i&ic%i#n$ #& %'e eec%i+e#&&icer$ nd #%'er e* #&&ici($ #& in$rnce c#m)nie$ r )r)#$e$ #& %'i$

$ec%i#n!

N# )er$#n $'(( c#ncrren%(* be direc%#r nd#r #&&icer #& n in$rnce

c#m)n* nd n d=$%men% c#m)n*!

Incmben% direc%#r$ nd#r #&&icer$ &&ec%ed b* %'e b#+e )r#+i$i#n$ re 'ereb*

((#-ed %# '#(d #n %# %'eir )#$i%i#n$ n%i( %'e end #& %'eir %erm$ #r %-# *er$

&r#m %'e e&&ec%i+i%* #& %'i$ decree, -'ic'e+er i$ $'#r%er!


24/106

N# in$rnce c#m)n* m* be %'#ried %# %rn$c% in %'e P'i(i))ine$ %'e

b$ine$$ #& (i&e nd n#nB(i&e in$rnce c#ncrren%(* n(e$$ $)eci&ic((*

%'#ried %# d# $#/ Provided, T'% %'e %erm$ "ife" nd "non!ife"in$rnce

$'(( be deemed %# inc(de 'e(%', cciden% nd di$bi(i%* in$rnce!

N# in$rnce c#m)n* $'(( '+e e5i%* in n d=$%men% c#m)n* nd nei%'er

$'(( n d=$%men% c#m)n* '+e n e5i%* in n in$rnce c#m)n*!

In$rnce c#m)nie$ nd d=$%men% c#m)nie$ )re$en%(* &&ec%ed b* %'e b#+e

)r#+i$i#n $'(( '+e %-# *er$ &r#m %'e e&&ec%i+i%* #& %'i$ Decree -i%'in -'ic' %#

di+e$% #& %'eir $%#c'#(din.$! 6A$ mended b* Pre$iden%i( Decree N#! 14??!

Sec! 188! Ece)% $ )r#+ided in $ec%i#n %-# 'ndred ei.'%*B#ne, n# d#me$%ic

in$rnce c#m)n* $'((, in $%#c c#r)#r%i#n, en..e in b$ine$$ in %'e

P'i(i))ine$ n(e$$ )#$$e$$ed #& )idB) c)i%( $%#c e5( %# % (e$% &i+e

mi((i#n )e$#$/ Provided, T'% d#me$%ic in$rnce c#m)n* (red* d#in.

b$ine$$ in %'e P'i(i))ine$ -i%' )idB) c)i%( $%#c -'ic' i$ (e$$ %'n &i+e

mi((i#n )e$#$ $'(( '+e )idB) c)i%( $%#c #& % (e$% %'ree mi((i#n )e$#$ b*

December %'ir%*B#ne, nine%een 'ndred $e+en%*Bei.'%, r mi((i#n )e$#$ b*December %'ir%*B#ne, nine%een 'ndred $e+en%*Bnine nd &i+e mi((i#n )e$#$ b*

December %'ir%*B#ne, nine%een 'ndred ei.'%*/Provided, further,%'% %'e

Secre%r* #& Finnce m*, )#n rec#mmend%i#n #& %'e In$rnce

C#mmi$$i#ner, incre$e $c' minimm )idB) c)i%( $%#c re5iremen%, nder

$c' %erm$ nd c#ndi%i#n$ $ 'e m* im)#$e, %# n m#n% -'ic', in 'i$ #)ini#n,

-#(d re$#nb(* $$re %'e $&e%* #& %'e in%ere$%$ #& %'e )#(ic*'#(der$ nd %'e

)b(ic!chanrobles virtual la librar!

T'e C#mmi$$i#ner m*, $ )reB(icen$in. re5iremen% #& ne- in$rnce

c#m)n*, in ddi%i#n %# %'e )idB) c)i%( $%#c, re5ire %'e $%#c'#(der$ %#

)* in c$' %# %'e c#m)n* in )r#)#r%i#n %# %'eir $b$cri)%i#n in%ere$%$ c#n%rib%ed $r)($ &nd #& n#% (e$$ %'n #ne mi((i#n )e$#$, in %'e c$e #& (i&e

in$rnce c#m)n*, #r n#% (e$$ %'n &i+e 'ndred %'#$nd )e$#$, in %'e c$e #&

n in$rnce c#m)n* #%'er %'n (i&e! He m* ($# re5ire $c' c#m)n* %#

$bmi% %# 'im b$ine$$ )(n $'#-in. %'e c#m)n*>$ e$%im%ed recei)%$ nd

di$br$emen%$, $ -e(( $ %'e b$i$ %'erer, r %'e ne% $cceedin. %'ree

*er$!

I& #r.nied $ m%( c#m)n*, in (ie #& $c' c)i%( $%#c, i% m$% '+e

+i(b(e c$' $$e%$ #& % (e$% &i+e mi((i#n )e$#$ b#+e (( (ibi(i%ie$ r (#$$e$

re)#r%ed, e)en$e$, %e$, (e.( re$er+e, nd rein$rnce #& (( #%$%ndin.

ri$$, nd %'e c#n%rib%ed $r)($ &nd e5( %# %'e m#n%$ re5ired #& $%#cc#r)#r%i#n$! A $%#c in$rnce c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$ m*,

$b=ec% %# %'e )er%inen% (- nd re.(%i#n$ -'ic' n#- re #& 'ere&%er m* be

in rce, (%er i%$ #r.ni%i#n nd %rn$rm i%$e(& in%# m%( in$rnce

c#m)n*! 6A$ mended b* Pre$iden%i( Decree N#! 14??!

Sec! 189! E+er* c#m)n* m$%, bere en..in. in %'e b$ine$$ #& in$rnce in

%'e P'i(i))ine$, &i(e -i%' %'e C#mmi$$i#ner %'e

((#-in./c'nr#b(e$+ir%((-(ibrr*


25/106


26/106

Phiippines, that if at any time said company sha eave the Phiippines, or cease

to transact business therein, or sha be without any agent in the Phiippines on

whom any notice, proof of oss, summons, or ega process may be served, then

in any action or proceeding arising out any business or transaction which

occurred in the Phiippines, service of any notice provided by aw, or insurance

poicy, proof of oss, summons, or other ega process may be made upon the

Insurance Commissioner sha have the same force and effect as if made upon

the company."

3'ene+er $c' $er+ice #& n#%ice, )r##& #& (#$$, $mm#n$, #r #%'er (e.( )r#ce$$

$'(( be mde )#n %'e C#mmi$$i#n, 'e m$%, -i%'in %en d*$ %'ere&%er,

%rn$mi% b* mi(, )#$%.e )id, c#)* #& $c' n#%ice, )r##& #& (#$$, $mm#n$, #r

#%'er (e.( )r#ce$$ %# %'e c#m)n* % i%$ '#me #r )rinci)( #&&ice! T'e $endin. #&

$c' c#)* b* %'e C#mmi$$i#ner $'(( be nece$$r* )r% #& %'e $er+ice #& %'e

n#%ice, )r##& #& (#$$, #r #%'er (e.( )r#ce$$!

Sec! 191! N# in$rnce c#m)n* #r.nied #r ei$%in. nder %'e .#+ernmen% #r

(-$ #%'er %'n %'#$e #& %'e P'i(i))ine$ $'(( en..e in b$ine$$ in %'eP'i(i))ine$ n(e$$ )#$$e$$ed #& )idB) nim)ired c)i%( #r $$e%$ nd re$er+e

n#% (e$$ %'n %'% 'erein re5ired #& d#me$%ic in$rnce c#m)nie$, n#r n%i( i%

$'(( '+e de)#$i%ed -i%' %'e C#mmi$$i#ner r %'e bene&i% nd $ecri%* #& %'e

)#(ic*'#(der$ nd credi%#r$ #& $c' c#m)n* in %'e P'i(i))ine$, $ecri%ie$

$%i$&c%#r* %# %'e C#mmi$$i#ner c#n$i$%in. #& .##d $ecri%ie$ #& %'e P'i(i))ine$,

inc(din. ne- i$$e$ #& $%#c #&"registered enterprises", $ %'i$ %erm i$ de&ined

in Re)b(ic Ac% N#! ?18@, #%'er-i$e n#-n $ %'eInvestment Incentives $ct, $

mended, %# %'e c%( mre% +(e #& n#% (e$$ %'n %'e minimm )idB)

c)i%( re5ired #& d#me$%ic in$rnce c#m)nie$/ Provided, T'% % (e$%

&i&%*per centum#& $c' $ecri%ie$ $'(( c#n$i$% #& b#nd$ #r #%'er e+idence$ #&deb% #& %'e G#+ernmen% #& %'e P'i(i))ine$, i%$ )#(i%ic( $bdi+i$i#n$ nd

in$%rmen%(i%ie$, #r #& .#+ernmen%B#-ned #r c#n%r#((ed c#r)#r%i#n$ nd

en%i%ie$, inc(din. %'e Cen%r(


27/106

$'(( be re%rned )#n %'e c#m)n*>$ min. ))(ic%i#n %'erer nd )r#+in.

%# %'e $%i$&c%i#n #& %'e C#mmi$$i#ner %'% i% '$ n# &r%'er (ibi(i%* nder n*

#& i%$ )#(icie$ in %'e P'i(i))ine$!

Sec! 19:! E+er* rei.n c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$ $'(( $e% $ide

n m#n% c#rre$)#ndin. %# %'e (e.( re$er+e$ #& %'e )#(icie$ -ri%%en in %'e

P'i(i))ine$ nd in+e$% nd ee) %'e $me %'erein in cc#rdnce -i%' %'e

)r#+i$i#n$ #& %'i$ $ec%i#n! T'e (e.( re$er+e %'erein re5ired %# be $e% $ide $'((

be in+e$%ed #n(* in %'e c($$e$ #& %'e P'i(i))ine $ecri%ie$ de$cribed in $ec%i#n

%-# 'ndred/Provided, however, T'% n# in+e$%men% in $%#c$ #r b#nd$ #& n*

$in.(e en%i%* $'((, in %'e ..re.%e eceed %-en%*per centum#& %'e ne% -#r%'

#& %'e in+e$%in. c#m)n* #r %-en%* )er cen%m #& %'e c)i%( #& %'e i$$in.

c#m)n*, -'ic'e+er i$ %'e (e$$er n(e$$ #%'er-i$e ))r#+ed in -ri%in. b* %'e

C#mmi$$i#ner! T'e $ecri%ie$ )rc'$ed nd e)% in %'e P'i(i))ine$ nder %'i$

$ec%i#n, $'(( n#% be $en% #% #& %'e %erri%#ri( =ri$dic%i#n #& %'e P'i(i))ine$

-i%'#% %'e -ri%%en c#n$en% #& %'e C#mmi$$i#ner!

Ti%(e 2"ARGIN OF INSOL0ENC;

Sec! 194! An in$rnce c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$ $'(( % ((

%ime$ min%in mr.in #& $#(+enc* -'ic' $'(( be n ece$$ #& %'e +(e #& i%$

dmi%%ed $$e%$ ec($i+e #& i%$ )idB) c)i%(, in %'e c$e #& d#me$%ic

c#m)n*, #r n ece$$ #& %'e +(e #& i%$ dmi%%ed $$e%$ in %'e P'i(i))ine$,

ec($i+e #& i%$ $ecri%* de)#$i%$, in %'e c$e #& rei.n c#m)n*, #+er %'e

m#n% #& i%$ (ibi(i%ie$, nerned )remim nd rein$rnce re$er+e$ in %'e

P'i(i))ine$ #& % (e$% %-# )er mi((e #& %'e %#%( m#n% #& i%$ in$rnce in rce

$ #& %'e )recedin. c(endr *er #n (( )#(icie$, ece)% %erm in$rnce, in %'e

c$e #& (i&e in$rnce c#m)n*, #r #& % (e$% %en )er cen%m #& %'e %#%(m#n% #& i%$ ne% )remim -ri%%en drin. %'e )recedin. c(endr *er, in %'e

c$e #& c#m)n* #%'er %'n (i&e in$rnce c#m)n*/ Provided, T'% in ei%'er

c$e, $c' mr.in $'(( in n# e+en% be (e$$ %'n &i+e 'ndred %'#$nd )e$#$/

nd Provided, further, T'% %'e %erm"paid!up capita"$'(( n#% inc(de

c#n%rib%ed $r)($ nd c)i%( )id in ece$$ #& )r +(e! Sc' $$e%$,

(ibi(i%ie$ nd re$er+e$ $'(( ec(de $$e%$, (ibi(i%ie$ nd re$er+e$ inc(ded in

$e)r%e cc#n%$ e$%b(i$'ed in cc#rdnce -i%' $ec%i#n %-# 'ndred %'ir%*B

$e+en! 3'ene+er %'e remen%i#ned mr.in be nd %# be (e$$ %'n %'%

'erein re5ired %# be min%ined, %'e C#mmi$$i#ner $'(( r%'-i%' direc% %'e

c#m)n* %# me .##d n* $c' de&icienc* b* c$', %# be c#n%rib%ed b* (($%#c'#(der$ #& rec#rd in )r#)#r%i#n %# %'eir re$)ec%i+e in%ere$%, nd )id %# %'e

%re$rer #& %'e c#m)n*, -i%'in &i&%een d*$ &r#m recei)% #& %'e

#rder/ Provided, T'% %'e c#m)n* in %'e in%erim $'(( n#% be )ermi%%ed %# %e

n* ne- ri$ #& n* ind #r c'rc%er n(e$$ nd n%i( i% me .##d n* $c'

de&icienc*/Provided, further, %'% $%#c'#(der -'# $ide &r#m )*in. %'e

c#n%rib%i#n de &r#m 'im, )*$ %'e c#n%rib%i#n de &r#m %'e n#%'er

$%#c'#(der b* re$#n #& %'e &i(re #r re&$( #& %'e (%%er %# d# $#, $'(( '+e


28/106

(ien #n %'e cer%i&ic%e$ #& $%#c #& %'e in$rnce c#m)n* c#ncerned ))erin.

in i%$ b##$ in %'e nme #& %'e de&(%in. $%#c'#(der #n %'e d%e #& de&(%, $

-e(( $ #n n* in%ere$%$ #r di+idend$ %'% '+e ccred #r -i(( ccre %# %'e $id

cer%i&ic%e$ #& $%#c, n%i( %'e c#rre$)#ndin. )*men% #r reimbr$emen% i$ mde

b* %'e de&(%in. $%#c'#(der! 6A$ mended b* Pre$iden%i( Decree N#! 14??!

Sec! 19?! N# d#me$%ic in$rnce c#r)#r%i#n $'(( dec(re #r di$%rib%e n*

di+idend #n i%$ #%$%ndin. $%#c$ ece)% &r#m )r#&i%$ %%e$%ed in $-#rn

$%%emen% %# %'e C#mmi$$i#ner b* %'e )re$iden% #r %re$rer #& %'e c#r)#r%i#n

%# be reminin. #n 'nd &%er re%inin. nim)ired/c'nr#b(e$+ir%((-(ibrr*

6 T'e en%ire )idB) c)i%( $%#c

6b T'e mr.in #& $#(+enc* re5ired b* $ec%i#n #ne 'ndred nine%*Br

6c In %'e c$e #& (i&e in$rnce c#r)#r%i#n, %'e (e.( re$er+e &nd re5ired b*

$ec%i#n %-# 'ndred e(e+en

6d In %'e c$e #& c#r)#r%i#n$ #%'er %'n (i&e, %'e (e.( re$er+e &nd re5ired b*

$ec%i#n %-# 'ndred %'ir%een

6e A $m $&&icien% %# )* (( ne% (#$$e$ re)#r%ed, #r in %'e c#r$e #& $e%%(emen%,nd (( (ibi(i%ie$ r e)en$e$ nd %e$!

An* di+idend dec(red #r di$%rib%ed nder %'e )recedin. )r.r)' $'(( be

re)#r%ed %# %'e C#mmi$$i#ner -i%'in %'ir%* d*$ &%er $c' dec(r%i#n #r

di$%rib%i#n!

I& %'e C#mmi$$i#ner &ind$ %'% n* $c' c#r)#r%i#n '$ dec(red #r di$%rib%ed

n* $c' di+idend in +i#(%i#n #& %'i$ $ec%i#n, 'e m* #rder $c' c#r)#r%i#n %#

ce$e nd de$i$% &r#m d#in. b$ine$$ n%i( %'e m#n% #& $c' di+idend #r %'e

)#r%i#n %'ere#& in ece$$ #& %'e m#n% ((#-ed nder %'i$ $ec%i#n '$ been

re$%#red %# $id c#r)#r%i#n!

Ti%(e :ASSETS

Sec! 19@! In n* de%ermin%i#n #& %'e &innci( c#ndi%i#n #& n* in$rnce

c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$, %'ere $'(( be ((#-ed nd dmi%%ed

$ $$e%$ #n(* $c' $$e%$ #-ned b* %'e in$rnce c#m)n* c#ncerned nd

-'ic' c#n$i$% #&/c'nr#b(e$+ir%((-(ibrr*

1! C$' in %'e )#$$e$$i#n #& %'e in$rnce c#m)n* #r in %rn$i% nder i%$

c#n%r#(, nd %'e %re nd d(* +eri&ied b(nce #& n* de)#$i% #& $c' c#m)n* in

&innci((* $#nd c#mmerci( bn #r %r$% c#m)n*!

2! In+e$%men%$ in $ecri%ie$, inc(din. m#ne* mre% in$%rmen%$, nd in re(

)r#)er%* c5ired #r 'e(d in cc#rdnce -i%' nd $b=ec% %# %'e ))(icb(e)r#+i$i#n$ #& %'i$ C#de nd %'e inc#me re(ied %'ere&r#m #r ccred %'ere#n!

:! L#n$ .rn%ed b* %'e in$rnce c#m)n* c#ncerned %# %'e e%en% #& %'%

)#r%i#n %'ere#& de5%e(* $ecred b* n#nB$)ec(%i+e $$e%$ -i%' redi(*

re(ib(e +(e$ in cc#rdnce -i%' nd $b=ec% %# %'e (imi%%i#n$ im)#$ed b*

))(icb(e )r#+i$i#n$ #& %'i$ C#de!

4! P#(ic* (#n$ nd #%'er )#(ic* $$e%$ nd (ien$ #n )#(icie$, c#n%rc%$ #r

cer%i&ic%e$ #& (i&e in$rnce c#m)n*, in n m#n% n#% eceedin. (e.(


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re$er+e$ nd #%'er )#(ic* (ibi(i%ie$ crried #n ec' indi+id( (i&e in$rnce

)#(ic*, c#n%rc% #r cer%i&ic%e!

?! T'e ne% m#n% #& nc#((ec%ed nd de&erred )remim$ nd nni%*

c#n$ider%i#n$ in %'e c$e #& (i&e in$rnce c#m)n* -'ic' crrie$ %'e &((

men %b(r re$er+e (ibi(i%*!

@! Rein$rnce rec#+erb(e b* %'e cedin. in$rer/c'nr#b(e$+ir%((-(ibrr*

6 &r#m n in$rer %'#ried %# %rn$c% b$ine$$ in %'i$ c#n%r*, %'e &((

m#n% %'ere#& #r

6b &r#m n in$rer n#% %'#ried in %'i$ c#n%r*, in n m#n% n#% eceedin.

%'e (ibi(i%ie$ crried b* %'e cedin. in$rer r m#n%$ -i%''e(d nder

rein$rnce %re%* -i%' $c' n%'#ried in$rer $ $ecri%* r %'e )*men% #&

#b(i.%i#n$ %'erender i& $c' &nd$ re 'e(d $b=ec% %# -i%'dr-( b*, nd

nder %'e c#n%r#( #&, %'e cedin. in$rer! T'e C#mmi$$i#ner m* )re$cribe %'e

c#ndi%i#n$ nder -'ic' cedin. in$rer m* be ((#-ed credi%, $ n $$e% #r $

dedc%i#n &r#m (#$$ nd nerned )remim re$er+e$, r rein$rncerec#+erb(e &r#m n in$rer n#% %'#ried in %'i$ c#n%r* b% -'ic' )re$en%$

$%i$&c%#r* e+idence %'% i% mee%$ %'e ))(icb(e $%ndrd$ #& $#(+enc* re5ired

in %'i$ c#n%r*!

7! Fnd$ -i%''e(d b* cedin. in$rer nder rein$rnce %re%*, )r#+ided

re$er+e$ r n)id (#$$e$ nd nerned )remim$ re de5%e(* )r#+ided!

8! De)#$i%$ #r m#n%$ rec#+erb(e &r#m nder-ri%in. $$#ci%i#n$, $*ndic%e$

nd rein$rnce &nd$, #r &r#m n* $$)ended bnin. in$%i%%i#n, %# %'e e%en%

deemed b* %'e C#mmi$$i#ner %# be +i(b(e r %'e )*men% #& (#$$e$ nd

c(im$ nd +(e$ %# be de%ermined b* 'im!9! E(ec%r#nic d% )r#ce$$in. mc'ine$, $ m* be %'#ried b* %'e

C#mmi$$i#ner %# be c5ired b* %'e in$rnce c#m)n* c#ncerned, %'e

c5i$i%i#n c#$% #& -'ic' %# be m#r%ied in e5( nn( m#n%$ -i%'in

)eri#d #& &i+e *er$ &r#m %'e d%e #& c5i$i%i#n %'ere#&!

1! O%'er $$e%$, n#% inc#n$i$%en% -i%' %'e )r#+i$i#n$ #& )r.r)'$ 1 %# 9

'ere#&, -'ic' re deemed b* %'e C#mmi$$i#ner %# be redi(* re(ib(e nd

+i(b(e r %'e )*men% #& (#$$e$ nd c(im$ % +(e$ %# be de%ermined b*

'im!

Sec! 197! In ddi%i#n %# $c' $$e%$ $ %'e C#mmi$$i#ner m* &r#m %ime %# %ime

de%ermine %# be n#nBdmi%%ed $$e%$ #& in$rnce c#m)nie$ d#in. b$ine$$ in%'e P'i(i))ine$, %'e ((#-in. $$e%$ $'(( in n# c$e be ((#-ed $ dmi%%ed

$$e%$ #& n in$rnce c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$, in n*

de%ermin%i#n #& i%$ &innci( c#ndi%i#n/c'nr#b(e$+ir%((-(ibrr*

1! G##d-i((, %rde nme$, nd #%'er (ie in%n.ib(e $$e%$!

2! Pre)id #r de&erred c'r.e$ r e)en$e$ nd c#mmi$$i#n$ )id b* $c'

in$rnce c#m)n*!

:! Ad+nce$ %# #&&icer$ 6#%'er %'n )#(ic* (#n$, -'ic' re n#% de5%e(*


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31/106


32/106


33/106

-'#((* #r in )r% -i%'in %'e P'i(i))ine$/ Provided, however,T'% %'ere i$ ri.'%

%# recei+e de%ermined )#r%i#n$ #& ren%(, )rc'$e #r #%'er &ied #b(i.%#r*

)*men%$ r %'e $e #r )rc'$e #& $c' e5i)men%!

6i An* #b(i.%i#n #& n* c#r)#r%i#n #r in$%i%%i#n cre%ed #r ei$%in. nder %'e

(-$ #& %'e P'i(i))ine$ -'ic' i$, #n %'e d%e #& c5i$i%i#n b* %'e in$rer,

de5%e(* $ecred nd '$ 5(i%ie$ nd c'rc%eri$%ic$ -'erein %'e $)ec(%i+e

e(emen%$ re n#% )red#minn%!

6= Sc' #%'er $ecri%ie$ $ m* be ))r#+ed b* %'e C#mmi$$i#ner!

6: An* d#me$%ic in$rer -'ic' '$ #%$%ndin. in$rnce, nni%* #r

rein$rnce c#n%rc%$ in crrencie$ #%'er %'n %'e n%i#n( crrenc* #& %'e

P'i(i))ine$ m* in+e$% in, #r #%'er-i$e c5ire #r (#n )#n $ecri%ie$ nd

in+e$%men%$ in $c' crrenc* -'ic' re $b$%n%i((* #& %'e $me ind$, c($$e$

nd in+e$%men% .rde$ $ %'#$e e(i.ib(e r in+e$%men% nder %'e re.#in.

$bdi+i$i#n$ #& %'i$ $ec%i#n b% %'e ..re.%e m#n% #& $c' in+e$%men% nd #&

$c' c$' in $c' crrenc* -'ic' i$ % n*%ime 'e(d b* $c' in$rer $'(( n#%

eceed #ne nd #neB'(& %ime$ %'e m#n% #& i%$ re$er+e$ nd #%'er #b(i.%i#n$nder $c' c#n%rc%$ #r %'e m#n% -'ic' $c' in$rer i$ re5ired b* %'e (- #&

n* c#n%r* #r )#$$e$$i#n #%$ide %'e Re)b(ic #& %'e P'i(i))ine$ %# be in+e$% in

$c' c#n%r* #r )#$$e$$i#n, -'ic'e+er $'(( be .re%er!

Sec! 21! An in$rnce c#m)n* m* 61 in+e$% in e5i%ie$ #& #%'er &innci(

in$%i%%i#n$, nd 62 en..e in %'e b*in. nd $e((in. #& $'#r%B%erm deb%

in$%rmen%$/ Provided, T'% n* #r (( #& $c' in+e$%men%$ $'(( be -i%' %'e )ri#r

))r#+( #& %'e C#mmi$$i#ner!

Sec! 22! An* (i&e in$rnce c#m)n* m*/c'nr#b(e$+ir%((-(ibrr*

6 Ac5ire #r c#n$%rc% '#$in. )r#=ec%$ nd, in c#nnec%i#n -i%' n* $c'

)r#=ec%, m* c5ire (nd #r n* in%ere$% %'erein b* )rc'$e, (e$e #r#%'er-i$e, #r $e (nd c5ired )r$n% %# n* #%'er )r#+i$i#n #& %'i$ C#de!

Sc' c#m)n* m* %'ere&%er #-n, min%in, mn.e, c#((ec% #r recei+e inc#me

&r#m, #r $e(( nd c#n+e*, n* (nd #r in%ere$% %'erein $# c5ired nd n*

im)r#+emen%$ %'ere#n! T'e ..re.%e b## +(e #& %'e in+e$%men%$ #& n* $c'

c#m)n* in (( $c' )r#=ec%$ $'(( n#% eceed % %'e %ime #& $c' in+e$%men%$

%-en%* &i+e )er cen%m #& %'e %#%( dmi%%ed $$e%$ #& $c' c#m)n* #n %'e

%'ir%*B&ir$% d* #& December ne% )recedin.

6b Ac5ire re( )r#)er%*, #%'er %'n )r#)er%* %# be $ed )rimri(* r )r#+idin.

'#$in. nd )r#)er%* r cc#mm#d%i#n #& i%$ #-n b$ine$$, $ n in+e$%men%

r %'e )r#dc%i#n #& inc#me, #r m* c5ire re( )r#)er%* %# be im)r#+ed #rde+e(#)ed r $c' in+e$%men% )r)#$e )r$n% %# )r#.rm %'erer, $b=ec%

%# %'e c#ndi%i#n %'% %'e c#$% #& ec' )rce( #& re( )r#)er%* $# c5ired nder

%'e %'#ri%* #& %'i$ )r.r)' 6b, inc(din. %'e e$%im%ed c#$% %# %'e c#m)n*

#& %'e im)r#+emen% #r de+e(#)men% %'ere#&, -'en dded %# %'e b## +(e #& ((

#%'er re( )r#)er%* 'e(d b* i%$ )r$n% %# %'i$ )r.r)' 6b, $'(( n#% eceed

%-en%*B&i+eper centum#& i%$ dmi%%ed $$e%$ $ #& %'e %'ir%*B&ir$% d* #&

December ne% )recedin.!


34/106

Sec! 2:! E+er* d#me$%ic in$rnce c#m)n* $'((, %# %'e e%en% #& n m#n%

e5( in +(e %# %-en%*B&i+e )er cen%m #& %'e minimm )idB) c)i%(

re5ired nder $ec%i#n #ne 'ndred ei.'%*Bei.'%, in+e$% i%$ &nd$ #n(* in

$ecri%ie$, $%i$&c%#r* %# %'e C#mmi$$i#ner, c#n$i$%in. #& b#nd$ #r #%'er

e+idence$ #& deb% #& %'e G#+ernmen% #& %'e P'i(i))ine$ #r i%$ )#(i%ic(

$bdi+i$i#n$ #r in$%rmen%(i%ie$, #r #& .#+ernmen%B#-ned #r c#n%r#((ed

c#r)#r%i#n$ nd en%i%ie$, inc(din. %'e Cen%r(


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nine%*Bei.'%, %-# 'ndred nd %-# 'ndred #ne, #r in n* $ecri%ie$ i$$ed b*

"registered enterprise"men%i#ned in %'e )recedin. $ec%i#n$/ Provided, T'% n#

in+e$%men% in $%#c$ #r b#nd$ #& n* $in.(e en%i%* $'(( in %'e ..re.%e, eceed

%-en%* )er cen%m #& %'e ne% -#r%' #& %'e in$rnce c#m)n* $ $'#-n in i%$

(%e$% &innci( $%%emen% ))r#+ed b* %'e C#mmi$$i#ner #r %-en%* )er cen%m

#& %'e )idB) c)i%( #& %'e i$$in. c#m)n*, -'ic'e+er i$ (e$$er, n(e$$

#%'er-i$e ))r#+ed b* %'e C#mmi$$i#ner!

Sec! 2@! A&%er $%i$&*in. %'e minimm c)i%( in+e$%men% re5ired in $ec%i#n

%-# 'ndred %'ree, n* (i&e in$rnce c#m)n* m* in+e$% i%$ (e.( )#(ic*

re$er+e, $ )r#+ided in $ec%i#n %-# 'ndred e(e+en #r in $ec%i#n %-# 'ndred

%-e(+e, in n* #& %'e c($$e$ #& $ecri%ie$ #r %*)e$ #& in+e$%men%$ de$cribed in

$ec%i#n$ #ne 'ndred nine%*Bei.'%, %-# 'ndred, %-# 'ndred #ne nd %-#

'ndred %-#, $b=ec% %# %'e (imi%%i#n$ %'erein c#n%ined, nd in n* $ecri%ie$

i$$ed b* n* "registered enterprise"men%i#ned in $ec%i#n %-# 'ndred r,

&ree &r#m n* (ien #r encmbrnce, in $c' m#n%$ $ m* be ))r#+ed b* %'e

C#mmi$$i#ner! Sc' c#m)n* m* (ie-i$e in+e$% n* )#r%i#n #& i%$ erned$r)($ in %'e re$id $ecri%ie$ #r in+e$%men%$ $b=ec% %# %'e re$id

(imi%%i#n$!

Sec! 27! An* in+e$%men% mde in +i#(%i#n #& %'e ))(icb(e )r#+i$i#n$ #& %'i$

%i%(e $'(( be c#n$idered n#nBdmi%%ed $$e%$!

Sec! 28! 61 A(( b#nd$ #r #%'er e+idence$ #& indeb%edne$$ '+in. &ied %erm

nd r%e #& in%ere$% nd 'e(d b* n* (i&e in$rnce c#m)n* %'#ried %# d#

b$ine$$ in %'i$ c#n%r*, i& m)(* $ecred nd i& n#% in de&(% $ %# )rinci)( #r

in%ere$%, $'(( be +(ed $ ((#-$/ I& )rc'$ed % )r, % %'e )r +(e i&

)rc'$ed b#+e #r be(#- )r, #n %'e b$i$ #& %'e )rc'$e )rice d=$%ed $# $

%# brin. %'e +(e %# )r % m%ri%* nd $# $ %# *ie(d in %'e men%ime %'ee&&ec%i+e r%e #& in%ere$% % -'ic' %'e )rc'$e -$ mde, #r in %'e di$cre%i#n #&

%'e C#mmi$$i#ner, #n %'e b$i$ #& %'e me%'#d #& c(c(%i#n c#mm#n(* n#-n $

%'e )r#Br% me%'#d! In ))(*in. %'e re.#in. r(e %'e )rc'$e )rice $'(( in

n# c$e be %en % 'i.'er &i.re %'n %'e c%( mre% +(e % %'e %ime #&

c5i$i%i#n! T'e C#mmi$$i#ner $'(( '+e %'e )#-er %# de%ermine %'e e(i.ibi(i%*

#& n* $c' in+e$%men%$ r +(%i#n #n %'e b$i$ #& m#r%i%i#n, nd m* b*

re.(%i#n )re$cribe #r (imi% %'e c($$e$ #& $ecri%ie$ $# e(i.ib(e r m#r%i%i#n!

A(( b#nd$ #r #%'er e+idence$ #& indeb%edne$$ -'ic' in %'e =d.men% #& %'e

C#mmi$$i#ner re n#% m)(* $ecred $'(( n#% be e(i.ib(e r m#r%i%i#n nd

$'(( be +(ed in cc#rdnce -i%' )r.r)' %-#! T'e C#mmi$$i#ner m*, i& 'e&ind$ %'% %'e in%ere$% #& )#(ic* '#(der$ $# )ermi% #r re5ire, b* #&&ici(

re.(%i#n )ermi% #r re5ire n* c($$ #r c($$e$ #& in$rer$, #%'er %'n (i&e

in$rnce c#m)nie$, %'#ried %# d# b$ine$$ in %'i$ c#n%r*, %# +(e %'eir

b#nd$ #r #%'er e+idence$ #& indeb%edne$$ in cc#rdnce -i%' %'e re.#in. r(e!

62 T'e in+e$%men%$ #& (( in$rer$ %'#ried %# d# b$ine$$ in %'i$ c#n%r*,

ece)% $ecri%ie$ $b=ec% %# m#r%i%i#n nd ece)% $ #%'er-i$e )r#+ided in

%'i$ c')%er, $'(( be +(ed, in %'e di$cre%i#n #& %'e C#mmi$$i#ner, % %'eir


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mre% +(e, #r % %'eir ))ri$ed +(e, #r % )rice$ de%ermined b* 'im $

re)re$en%in. %'eir &ir mre% +(e! I& %'e C#mmi$$i#ner &ind$ %'% in +ie- #&

%'e c'rc%er #& in+e$%men%$ #& n* in$rer %'#ried %# d# b$ine$$ in %'i$

c#n%r* i% -#(d be )rden% r $c' in$rer %# e$%b(i$' $)eci( re$er+e r

)#$$ib(e (#$$e$ #r &(c%%i#n$ in %'e +(e$ #& i%$ in+e$%men%$, 'e m* re5ire

$c' in$rer %# e$%b(i$' $c' re$er+e, re$#nb(e in m#n%, nd m* re5ire

%'% $c' re$er+e be min%ined nd re)#r%ed in n* $%%emen% #r re)#r% #& %'e

&innci( c#ndi%i#n #& $c' in$rer! T'e C#mmi$$i#ner m*, in c#nnec%i#n -i%'

n* emin%i#n #r re5ired &innci( $%%emen% #& n %'#ried in$rer,

re5ire $c' in$rer %# &rni$' 'im c#m)(e%e &innci( $%%emen%$ nd di%ed

re)#r% #& %'e &innci( c#ndi%i#n #& n* c#r)#r%i#n #& -'ic' %'e $ecri%ie$ re

#-ned -'#((* #r )r%(* b* $c' in$rer nd m* c$e n emin%i#n %# be

mde #& n* $b$idir* #r &&i(i%e #& $c' in$rer!

6: T'e $%#c #& n in$rnce c#m)n* $'(( be +(ed % %'e (e$$er #& i%$ mre%

+(e #r i%$ b## +(e $ $'#-n b* i%$ ($% ))r#+ed nn( $%%emen% #r %'e

($% re)#r% #n emin%i#n, -'ic'e+er i$ m#re recen%! T'e b## +(e #& $'re#& c#mm#n $%#c #& n in$rnce c#m)n* $'(( be $cer%ined b* di+idin. 6

%'e m#n% #& i%$ c)i%( nd $r)($ (e$$ %'e +(e #& (( #& i%$ )re&erred $%#c, i&

n*, #%$%ndin., b* 6b %'e nmber #& $'re$ #& i%$ c#mm#n $%#c i$$ed nd

#%$%ndin.!

N#%-i%'$%ndin. %'e re.#in. )r#+i$i#n$, n in$rer m*, % i%$ #)%i#n, +(e i%$

'#(din.$ #& $%#c in $b$idir* in$rnce c#m)n* in n m#n% n#% (e$$ %'n

c5i$i%i#n c#$% i& $c' c5i$i%i#n c#$% i$ (e$$ %'n %'e +(e de%ermined $

'ereinbere )r#+ided!

64 Re( e$%%e re5ired b* rec(#$re #r b* deed in (ie %'ere#&, in %'e b$ence

#& recen% ))ri$( deemed b* %'e C#mmi$$i#ner %# be re(ib(e, $'(( n#% be+(ed % n m#n% .re%er %'n %'e n)id )rinci)( #& %'e de&(%ed (#n %

%'e d%e #& $c' rec(#$re #r deed, %#.e%'er -i%' n* %e$ nd e)en$e$ )id

#r incrred b* $c' in$rer % $c' %ime in c#nnec%i#n -i%' $c' c5i$i%i#n, nd

%'e c#$% #& ddi%i#n$ #r im)r#+emen%$ %'ere&%er )id b* $c' in$rer nd n*

m#n% #r m#n%$ %'ere&%er )id b* $c' in$rer #n n* $$e$$men%$ (e+ied

r im)r#+emen%$ in c#nnec%i#n -i%' %'e )r#)er%*!chanrobles virtual la

librar!

6? Prc'$e m#ne* m#r%..e$ recei+ed #n di$)#$i%i#n$ #& re( )r#)er%* 'e(d

)r$n% %# $ec%i#n #ne 'ndred nine%*Bei.'% $'(( be +(ed in n m#n%

e5i+(en% %# nine%* )er cen%m #& %'e +(e #& $c' re( )r#)er%*! Prc'$em#ne* m#r%..e$ recei+ed #n di$)#$i%i#n #& re( )r#)er%* #%'er-i$e 'e(d $'((

be +(ed in n m#n% n#% eceedin. nine%* )er cen%m #& %'e +(e #& $c'

re( )r#)er%* $ de%ermined b* n ))ri$( mde b* n ))ri$er % #r b#%

%'e %ime #& di$)#$i%i#n #& $c' re( )r#)er%*!

6@ T'e $%#c #& $b$idir* #& n in$rer $'(( be +(ed #n %'e b$i$ #& %'e

.re%er #& 6i %'e +(e #& #n(* $c' $b$idir* #& %'e $$e%$ #& $c' $b$idir*

$ -#(d c#n$%i%%e (-&( in+e$%men%$ r %'e in$rer i& c5ired #r 'e(d direc%(*


37/106

b* %'e in$rer #r 6ii $c' #%'er +(e de%ermined )r$n% %# $%ndrd$ nd

cm(%i+e (imi%%i#n$, c#n%ined in re.(%i#n %# be )r#m(.%ed b* %'e

C#mmi$$i#ner!

67 N#%-i%'$%ndin. n* )r#+i$i#n c#n%ined in %'i$ $ec%i#n #r e($e-'ere in %'i$

c')%er, i& %'e C#mmi$$i#ner &ind %'% %'e in%ere$%$ #& )#(ic*'#(der$ $# )ermi% #r

re5ire, 'e m* )ermi% #r re5ire n* c($$ #r c($$e$ #& in$rer$ %'#ried %#

d# b$ine$$ in %'i$ c#n%r* %# +(e %'eir in+e$%men%$ #r n* c($$ #r c($$e$

%'ere#& $ #& n* d%e 'ere%#re #r 'ere&%er in cc#rdnce -i%' n* ))(icb(e

+(%i#n #r me%'#d!

Sec! 29! I% $'(( be %'e d%* #& %'e #&&icer$ #& %'e in$rnce c#m)n* %# re)#r%

-i%'in %'e &ir$% &i&%een d*$ #& e+er* m#n%' (( $c' in+e$%men%$ $ m* be mde

b* %'em drin. %'e )recedin. m#n%', nd %'e C#mmi$$i#ner m*, i& $c'

in+e$%men%$ #r n* #& %'em $eem in=dici#$ %# 'im, re5ire %'e $(e #r di$)#$(

#& %'e $me! T'e re)#r% $'(( ($# inc(de (i$% #& in+e$%men%$ $#(d #r di$)#$ed

#& b* %'e c#m)n* drin. %'e $me )eri#d!

Ti%(e ?RESER0ES

Sec! 21! E+er* (i&e in$rnce c#m)n*, d#in. b$ine$$ in %'e P'i(i))ine$, $'((

nn((* me +(%i#n #& (( )#(icie$, ddi%i#n$ %'ere%#, n)id di+idend$,

nd (( #%'er #b(i.%i#n$ #%$%ndin. #n %'e %'ir%*B&ir$% d* #& December #& %'e

)recedin. *er! A(( $c' +(%i#n$ $'(( be mde )#n %'e ne% )remim$ b$i$,

cc#rdin. %# %'e $%ndrd d#)%ed b* %'e c#m)n*, -'ic' $%ndrd $'(( be

$%%ed in i%$ nn( re)#r%!

Sc' $%ndrd #& +(%i#n -'e%'er #& %'e ne% (e+e( )remim, &(( )re(iminr*

%erm, n* m#di&ied )re(iminr* %erm, #r $e(ec% nd (%im%e re$er+e b$i$, $'((

be cc#rdin. %# $%ndrd %b(e #& m#r%(i%* -i%' in%ere$% % n#% m#re %'n $i)er cen%m c#m)#nd in%ere$%! 3'en %'e )re(iminr* %erm b$i$ i$ $ed, %'e

%erm in$rnce $'(( be (imi%ed %# %'e &ir$% )#(ic* *er!

T'e re$(%$ #& $c' +(%i#n$ $'(( be re)#r%ed %# %'e C#mmi$$i#ner #n #r

bere %'e %'ir%ie%' d* #& A)ri( #& ec' *er cc#m)nied b* $-#rn $%%emen%

#& %'e c#m)n*>$ c%r* cer%i&*in. %# %'e &i.re$ nd $%%in. )#n -'%

m#r%(i%* %b(e i% i$ b$ed, )#n -'% r%e #& in%ere$% %'e +(%i#n i$ mde, nd

%'e me%'#d$ $ed in rri+in. % %'e re$(% #b%ined!

Sec! 211! T'e ..re.%e ne% +(e $# $cer%ined #& %'e )#(icie$ #& $c' c#m)n*

$'(( be deemed i%$ re$er+e (ibi(i%*, %# )r#+ide r -'ic' i% $'(( '#(d &nd$ in

$ecre in+e$%men%$ e5( %# $c' ne% +(e, b#+e (( i%$ #%'er (ibi(i%ie$ nd i%$'(( be %'e d%* #& %'e C#mmi$$i#ner, &%er '+in. +eri&ied, %# $c' n e%en% $

'e m* deem nece$$r*, %'e +(%i#n #& (( )#(icie$ in rce, %# $%i$&* 'im$e(&

%'% %'e c#m)n* '$ $c' m#n% in $&e (e.( $ecri%ie$ &%er (( #%'er deb%$

nd c(im$ .in$% i% '+e been )r#+ided r!

T'e re$er+e (ibi(i%* r +rib(e c#n%rc%$ de&ined in $ec%i#n %-# 'ndred %'ir%*B

%-# $'(( be e$%b(i$'ed in cc#rdnce -i%' c%ri( )r#cedre$ %'% rec#.nie

%'e +rib(e n%re #& %'e bene&i%$ )r#+ided, nd $'(( be ))r#+ed b* %'e


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C#mmi$$i#ner!

Sec! 212! E+er* d#me$%ic (i&e in$rnce c#m)n*, c#ndc%ed #n %'e m%( )(n

#r )(n in -'ic' )#(ic*'#(der$ re b* %'e %erm$ #& %'eir )#(icie$ en%i%(ed %#

$'re in %'e )r#&i%$ #r $r)($ $'((, #n (( )#(icie$ #& (i&e in$rnce 'ere%#re #r

'ere&%er i$$ed, nder %'e c#ndi%i#n$ #& -'ic' %'e di$%rib%i#n #& $r)($ i$

de&erred %# &ied #r $)eci&ied %ime nd c#n%in.en% )#n %'e )#(ic* bein. in

rce nd %'e in$red (i+in. % %'% %ime, nn((* $cer%in %'e m#n% #& %'e

$r)($ %# -'ic' (( $c' )#(icie$ $ $e)r%e c($$ re en%i%(ed, nd $'((

nn((* ))#r%i#n %# $c' )#(icie$ $ c($$ %'e m#n% #& %'e $r)($ $#

$cer%ined, nd crr* %'e m#n% #& $c' ))#r%i#ned $r)($, )($ %'e c%(

in%ere$% ernin.$ nd ccre%i#n$ %# $c' &nd, $ di$%inc% nd $e)r%e (ibi(i%*

%# $c' c($$ #& )#(icie$ #n nd r -'ic' %'e $me -$ ccm(%ed, nd n#

c#m)n* #r n* #& i%$ #&&icer$ $'(( be )ermi%%ed %# $e n* )r% #& $c'

))#r%i#ned $r)($ &nd r n* )r)#$e -'%$#e+er #%'er %'n r %'e e)re$$

)r)#$e r -'ic' %'e $me -$ ccm(%ed!

Sec! 21:! E+er* in$rnce c#m)n*, #%'er %'n (i&e, $'(( min%in re$er+e rnerned )remim$ #n i%$ )#(icie$ in rce, -'ic' $'(( be c'r.ed $ (ibi(i%*

in n* de%ermin%i#n #& i%$ &innci( c#ndi%i#n! Sc' re$er+e $'(( be e5( %#

r%* )er cen%m #& %'e .r#$$ )remim$, (e$$ re%rn$ nd cnce((%i#n$, recei+ed

#n )#(icie$ #r ri$$ '+in. n#% m#re %'n *er %# rn, nd )r# r% #n (( .r#$$

)remim$ recei+ed #n )#(icie$ #r ri$$ '+in. m#re %'n *er %# rn/ Provided,

T'% r mrine cr.# ri$$ %'e re$er+e $'(( be e5( %# r%*per centum #& %'e

)remim$ -ri%%en in %'e )#(icie$ )#n *er(* ri$$, nd %'e &(( m#n% #& %'e

)remim$ -ri%%en drin. %'e ($% %-# m#n%'$ #& %'e c(endr *er )#n (( #%'er

mrine ri$$ n#% %ermin%ed!

Sec! 214! In ddi%i#n %# i%$ (ibi(i%ie$ nd re$er+e$ #n c#n%rc%$ #& in$rncei$$ed b* i%, e+er* in$rnce c#m)n* $'(( be c'r.ed -i%' %'e e$%im%ed

m#n% #& (( #& i%$ #%'er (ibi(i%ie$, inc(din. %e$, e)en$e$ nd #%'er

#b(i.%i#n$ de #r ccred % %'e d%e #& $%%emen%, nd inc(din. n* $)eci(

re$er+e$ re5ired b* %'e C#mmi$$i#ner )r$n% %# %'e )r#+i$i#n$ #& %'i$ C#de!

Ti%(e @

LI"IT OF SINGLE RIS

Sec! 21?! N# in$rnce c#m)n* #%'er %'n (i&e, -'e%'er rei.n #r d#me$%ic,

$'(( re%in n* ri$ #n n* #ne $b=ec% #& in$rnce in n m#n% eceedin.

%-en%* )er cen%m #& i%$ ne% -#r%'! F#r )r)#$e$ #& %'i$ $ec%i#n, %'e

%erm "sub&ect of insurance" $'(( inc(de (( )r#)er%ie$ #r ri$$ in$red b* %'e$me in$rer %'% c$%#mri(* re c#n$idered b* n#nB(i&e c#m)n* nder-ri%er$

%# be $b=ec% %# (#$$ #r dm.e &r#m %'e $me #ccrrence #& n* 'rd in$red

.in$%!

Rein$rnce ceded $ %'#ried nder %'e $cceedin. %i%(e $'(( be dedc%ed in

de%erminin. %'e ri$ re%ined! A$ %# $re%* ri$, dedc%i#n $'(( ($# be mde #&

%'e m#n% $$med b* n* #%'er c#m)n* %'#ried %# %rn$c% $re%*

b$ine$$ nd %'e +(e #& n* $ecri%* m#r%..e, )(ed.ed, #r 'e(d $b=ec% %# %'e


39/106

$re%*>$ c#n%r#( nd r %'e $re%*>$ )r#%ec%i#n!

Ti%(e 7

REINSURANCE TRANSACTIONS

Sec! 21@! An in$rnce c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$ m* cce)%

rein$rnce$ #n(* #& $c' ri$$, nd re%in ri$ %'ere#n -i%'in $c' (imi%$, $ i% i$

#%'er-i$e %'#ried %# in$re!

Sec! 217! N# in$rnce c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$ $'(( cede ((

#r )r% #& n* ri$$ $i%%ed in %'e P'i(i))ine$ b* -* #& rein$rnce direc%(* %#

n* rei.n in$rer n#% %'#ried %# d# b$ine$$ in %'e P'i(i))ine$ n(e$$ $c'

rei.n in$rer #r, i& %'e $er+ice$ #& n#nBre$iden% br#er re %i(ied, $c' n#nB

re$iden% br#er i$ re)re$en%ed in %'e P'i(i))ine$ b* re$iden% .en% d(*

re.i$%ered -i%' %'e C#mmi$$i#ner $ re5ired in %'i$ C#de!

T'e re$iden% .en% #& $c' n%'#ried rei.n in$rer #r n#nB re$iden% br#er

$'(( immedi%e(* )#n re.i$%r%i#n &rni$' %'e C#mmi$$i#ner -i%' %'e nn(

$%%emen% #& $c' in$rer, #r #& $c' c#m)n* #r c#m)nie$ -'ere $c' br#er

m* )(ce P'i(i))ine b$ine$$ $ #& %'e *er )recedin. $c' re.i$%r%i#n, ndnn((* %'ere&%er $ $##n $ +i(b(e!

Sec! 218! A(( in$rnce c#m)nie$, b#%' (i&e nd n#nB(i&e, %'#ried %# d#

b$ine$$ in %'e P'i(i))ine$ $'(( cede %'eir ece$$ ri$$ %# #%'er c#m)nie$

$imi(r(* %'#ried %# d# b$ine$$ in %'e P'i(i))ine$ in $c' m#n%$ nd nder

$c' rrn.emen%$ $ -#(d be c#n$i$%en% -i%' $#nd nder-ri%in. )rc%ice$

bere %'e* en%er in%# rein$rnce rrn.emen%$ -i%' n%'#ried rei.n

in$rer$!

Sec! 219! An* in$rnce c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$ de$irin. %#

cede %'eir ece$$ ri$$ %# rei.n in$rnce #r rein$rnce c#m)nie$ n#%

%'#ried %# %rn$c% b$ine$$ in %'e P'i(i))ine$ m* d# $# nder %'e ((#-in.c#ndi%i#n$/c'nr#b(e$+ir%((-(ibrr*

61 Ece)% in &c(%%i+e rein$rnce nd ece$$ #& (#$$ c#+er$, %'e &(( m#n%

#& %'e re$er+e &nd re5ired b* (- $'(( be $e% ) in %'e b##$ #& nd 'e(d b*

%'e cedin. c#m)n* r $# (#n. $ %'e ri$ c#ncerned i$ in rce/Provided, T'%

in c$e #& &c(%%i+e in$rnce, %'e cedin. c#m)n* $'(( $'#- %# %'e

$%i$&c%i#n #& %'e C#mmi$$i#ner %'% %'e P'i(i))ine mre% cnn#% )r#+ide %'e

&ci(i%ie$ $#.'% br#d!

62 T'e re$er+e &nd -i%''e(d $'(( be in+e$%ed in b#nd$ #r #%'er e+idence$ #&

deb% #& %'e G#+ernmen% #& %'e P'i(i))ine$ #r i%$ )#(i%ic( $bdi+i$i#n$ #r

in$%rmen%(i%ie$, #r #& .#+ernmen%B#-ned #r c#n%r#((ed c#r)#r%i#n$ nden%i%ie$, inc(din. %'e Cen%r(


40/106

Sec! 22! E+er* in$rnce c#m)n* %'#ried %# d# b$ine$$ in %'e P'i(i))ine$

$'(( re)#r% %# %'e C#mmi$$i#ner #n rm$ )re$cribed b* 'im %'e )r%ic(r$ #&

rein$rnce %re%ie$ $ #& %'e &ir$% d* #& nr* #& %'e *er ((#-in. %'e

))r#+( #& %'i$ C#de nd $'(( %'ere&%er $imi(r(* re)#r% %# %'e C#mmi$$i#ner

)r%ic(r$ #& n* ne- %re%ie$ #r c'n.e$ in ei$%in. %re%ie$!

Sec! 221! N# credi% $'(( be ((#-ed $ n dmi%%ed $$e% #r $ dedc%i#n &r#m

(ibi(i%*, %# n* cedin. in$rer r rein$rnce mde, ceded, rene-ed, #r

#%'er-i$e bec#min. e&&ec%i+e &%er nr* &ir$%, nine%een 'ndred $e+en%*B&i+e,

n(e$$ %'e rein$rnce $'(( be )*b(e b* %'e $$min. in$rer #n %'e b$i$ #&

%'e (ibi(i%* #& %'e cedin. in$rer nder %'e c#n%rc% #r c#n%rc%$ rein$red

-i%'#% dimin%i#n bec$e #& %'e in$#(+enc* #& %'e cedin. in$rer n#r n(e$$

nder %'e c#n%rc% #r c#n%rc%$ #& rein$rnce %'e (ibi(i%* r $c' rein$rnce

i$ $$med b* %'e $$min. in$rer #r in$rer$ $ #& %'e $me e&&ec%i+e d%e

n#r n(e$$ %'e rein$rnce .reemen% )r#+ide$ %'% )*men%$ b* %'e $$min.

in$rer $'(( be mde direc%(* %# %'e cedin. in$rer #r %# i%$ (i5id%#r, recei+er,

#r $%%%#r* $cce$$#r ece)% 6 -'ere %'e c#n%rc% $)eci&ic((* )r#+ide$n#%'er )*ee #& $c' rein$rnce in %'e e+en% #& %'e in$#(+enc* #& %'e cedin.

in$rer nd 6b -'ere %'e $$min. in$rer -i%' %'e c#n$en% #& %'e direc%

in$red #r in$red$ '$ $$med $c' )#(ic* #b(i.%i#n$ #& %'e cedin. in$rer $

direc% #b(i.%i#n$ #& %'e $$min. in$rer %# %'e )*ee$ nder $c' )#(icie$ nd

in $b$%i%%i#n r %'e #b(i.%i#n$ #& %'e cedin. in$rer %# $c' )*ee$!

Sec! 222! N# (i&e in$rnce c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$ $'((

rein$re i%$ -'#(e ri$ #n n* indi+id( (i&e #r =#in% (i+e$, #r $b$%n%i((* (( #&

i%$ in$rnce in rce, -i%'#% '+in. &ir$% #b%ined %'e -ri%%en )ermi$$i#n #& %'e

C#mmi$$i#ner!

Ti%(e 8ANNUAL STATE"ENT

Sec! 22:! E+er* in$rnce c#m)n* d#in. b$ine$$ in %'e P'i(i))ine$ $'((

%ermin%e i%$ &i$c( )eri#d #n %'e %'ir%*B&ir$% d* #& December e+er* *er, nd

$'(( nn((* #n #r bere %'e %'ir%ie%' d* #& A)ri( #& ec' *er render %# %'e

C#mmi$$i#ner $%%emen% $i.ned nd $-#rn %# b* %'e c'ie& #&&icer #& $c'

c#m)n* $'#-in., in $c' rm nd de%i($ $ m* be )re$cribed b* %'e

C#mmi$$i#ner, %'e ec% c#ndi%i#n #& i%$ &&ir$ #n %'e )recedin. %'ir%*B&ir$% d*

#& December!

An* en%r* in %'e $%%emen% -'ic' i$ nd %# be &($e $'(( c#n$%i%%e

mi$demen#r nd %'e #&&icer $i.nin. $c' $%%emen% $'(( be $b=ec% %# %'e)en(%* )r#+ided r nder $ec%i#n r 'ndred nine%een!

Sec! 224! E+er* in$rnce c#m)n* %'#ried nder %i%(e %en #& %'i$ c')%er %#

i$$e, de(i+er #r $e +rib(e c#n%rc%$ $'(( nn((* &i(e -i%' %'e C#mmi$$i#ner

$e)r%e nn( $%%emen% #& i%$ $e)r%e +rib(e cc#n%$! Sc' $%%emen%

$'(( be #n rm )re$cribed #r ))r#+ed b* %'e C#mmi$$i#ner nd $'(( inc(de

de%i($ $ %# (( #& %'e inc#me, di

Insurance Code of Phil

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Transcript of Insurance Code of Phil