Date Filed

Ref No

Subject No

Subject Title

Date Adopted

Circular Letter: Advisory

Date:
13
2013-25
Committees for September 2013
the
Implementation
of
R.A.
No.
10607
Circular Letter: Amendment
to Date:
16
2013-26
the
Revised September 2013
Template of Trust
Agreement
Circular Letter: Adoption
and Date:
04
2013-32
Implementation November 2013
of
the
2013
Dispute
Settlement
Procedures
in
Relation to the
Recruitment and
Transfers
of
Employees and
Sales Producers
Circular Letter: Adoption
and DATE:
04
2013-33
Implementation November 2013
of
the
2013
Market Conduct
Guidelines
Circular Letter: No Gifts Policy
2013-37

DATE:
06
December 2013

Circular Letter: 2013-25

Category: Insurance Commissioner
Date: 13 September 2013
CIRCULAR LETTER
TO: All Insurance Companies and Covered Persons and Entitites
SUBJECT: Advisory Committees for the Implementation of R.A. No. 10607
I. INTRODUCTION
The Insurance Commissioner is given the power to issue rules and regulations for

details therein for the effective implementation of the RA 10607.

II. APPLICABLE LAW
RA 10607
III. CONTENTS
Main Purpose
In the absence of an Over-all Implementing Rules and Regulations, the Advisory
Committee in each area of concern was hereby created. The said group was
formed mainly give advice to the Insurance Commission on the substance of the
proposed rules and regulations and the proper use of action to be taken.
Coverage
Members of the Advisory Committees are officers and personnel of the
Insurance Commission, officers of insurance companies or supervised entities,
and other persons whose valuable expertise is needed in the formulation of the
rules.
Areas of Concern
Solvency
Financial Statements and Reporting
Self-Regulatory Organization
Bancassurance
Trust Business
Electronic Policy Form and Processes
Premium Deposit Fund
Adjudication of Cases
Assets, Investments and Valuation
Capitalization (fixed capital and risk-based capital framework)
**
Circular Letter: 2013-26
Category: Trust
Date: 16 September 2013
CIRCULAR LETTER
TO: All Pre-need Companies & Trust Entities Authorized to Act as Trustee for Pre-need Trust
Funds
SUBJECT: Amendment to the Revised Template of Trust Agreement
I. INTRODUCTION
Trust Fund is at all times for the sole benefit of the planholders. Hence, to maintain
the said purpose, the template for trust agreement is revised.
II. HISTORY
Supersedes to Circular Letter No. 2-2013 regarding the Revised Template of Trust
Agreement
III. APPLICABLE LAW
Chapter 8, Section 30 of the Pre-Need Code
Rule 8 Section 32 of the Implementing Rules and Regulations of the Pre-Need
Code

IV. CONTENTS
The phrase contributions of cancelled plans to the Fund has been deleted.
The said Article shall now read as
ARTICLE III WITHDRAWAL AND PAYMENTS MADE OUT OF THE TRUST
FUND. No withdrawal shall be made from the Trust Fund except for paying the
Benefits such as monetary consideration, the cost of services rendered or
property delivered, trust fees, bank charges and investment expenses in the
operation of the Trust Fund, termination values payable to the Planholders,
annuities, and taxes on Trust Funds. Furthermore, only reasonable withdrawal
for minor repairs and costs of ordinary maintenance of trust fund assets shall be
allowed. Except as otherwise provided under this Article, the Pre-Need Code
and its Implementing Rules and Regulations, no withdrawal shall be made from
the TRUST FUND unless approved by the Commission. The TRUST FUND
shall be at all times be sufficient to cover the required pre-need reserve.
**
Circular Letter: 2013-32
Category: Sales Agents
Date: 04 November 2013
CIRCULAR LETTER
TO: All Life Insurance Companies Doing Business In the Philippines and their Agents
SUBJECT: Adoption and Implementation of the 2013 Dispute Settlement Procedures in
Relation to the Recruitment and Transfers of Employees and Sales Producers
I. INTRODUCTION
Dispute Settlement Procedures is to encourage the early and expeditious
settlement of disputes, to provide an alternative, and less adversarial, mode of
dispute resolution, and to ensure confidentiality of the proceedings for the
protection of the interest of all Members. The circular covers the provisions
regarding conciliation, mediation and arbitration.
II. HISTORY
Supersedes of the Insurance Commission Circular Letter 6-2002, dated 02 March
2002
III. APPLICABLE LAW
Pursuant to Sec 438 of the 2013 Amended Insurance Code, non-compliant
companies, officers or agents shall be subject to the disciplinary sanctions provided
under the said section.
The provisions of the Labor Code are applicable as the case may be.
The provisions of Republic Act No. 876 (Arbitration Law) shall apply suppletory.
Specifically, Section 24 thereof regarding grounds for vacating an award shall
likewise apply.
IV. CONTENTS
Term
The recruiting company of the sales producers is given a maximum period of
sixty (60) days before the start of the new contract to retain the employee so as

**

to allow the employer therein to have adequate time to take remedial steps to
avoid work or service interruption.
Definition of Terms
Conciliation
refers to the informal process where a neutral third party (Conciliator)
brokers an amicable settlement between the disputants
If dispute should arise, the parties shall attempt to reconcile through
Conciliation. If Conciliation fails, the parties shall enter into Mediation. If
Mediation fails, the parties shall enter into Arbitration.
Mediation
voluntary process in which a Mediator, who is selected by the disputant
parties, facilitates communication and negotiation, and assists the parties in
reaching a voluntary agreement regarding a dispute.
Arbitration
refers to a voluntary process in which one or more arbitrators, appointed in
facilitates communication and negotiation, and assists the parties in reaching
a voluntary agreement regarding a dispute accordance with these rules,
resolve a dispute by rendering an award
The request for Arbitration shall be submitted to Philippine Life Insurance
Association (PLIA), through the PLIA General Manager who shall act as the
Secretary of the proceedings. Within 15 days therefrom, the other party shall
file an Answer, copy furnished the other party.
The Arbitral Panel shall be composed of 3 arbitrators.
Conciliator shall be chosen from the roster of PLIA-Accredited Mediators and
Arbitrators.
Proceedings
Preliminary Conference
The issues to be resolved must be specified and clarified. The uncontested
facts must also be stipulated. The identification of the witnesses and the
extent of, and schedule for, presentation of material and relevant documents
as evidenced and other information shall be considered so as to expedite the
arbitration proceedings.
Hearing
Privacy of the hearing shall be maintained by having only persons with direct
interest to attend therein.
Full and equal opportunity to present material and relevant evidence shall be
afforded the parties to the dispute.
Decision based on the merits of the case
Remedy or relief that they may deem just and equitable including but not not
limited to specific performance may be granted the parties.
Fees, expenses and compensation in favor of any party may be assessed
and also awarded.
Conclusion of Proceedings
Arbitration proceedings are generally concluded with the transmittal of the
decision to all parties.

Circular Letter: 2013-33

Category: Market Conduct Guidelines pursuant to Section 374 of RA 10607
Date: 04 November 2013
CIRCULAR LETTER
TO: All Life Insurance Companies Doing Business In the Philippines and their Agents
SUBJECT: Adoption and Implementation of the 2013 Market Conduct Guidelines
I. INTRODUCTION
Pursuant to Section 374 of RA 10607, the main objective is to adopt and
promulgate a code of conduct to promote integrity, honesty and ethical business
practices among insurance agents, distributors and other intermediaries by
ensuring the effective implementation of the MARKET CONDUCT GUIDELINES
II. HISTORY
Supersedes to Circular No. 16-2007
III. APPLICABLE LAW
RA 10607
IV. CONTENTS
Definition
a consolidation of all the applicable provisions of the Insurance Code and other
rules and regulations of the Insurance Commission
Applicability
to all agents and general agents who have been issued Certificates of Authority
by the Commissioner
to all agency leaders
to those who perform the functions in the selling of life insurance products and
services regardless of their given names or designations
Obligations of the Agents
Duty of agents not to Advance or Finance of premium payments in behalf of
their clients
Duty of agents to not give any discount, rebate and inducement in favor of their
clients
DUTY OF AGENTS TO THE INSURANCE PROFESSION
Duty of Strict compliance with the guidelines as well as local laws such as
the Insurance Code, Anti-Money Laundering Act and the Terrorism Financing
Prevention and Suppression Act
Duty to Report another's Agent Misconduct
Duty to Practice ethical market conduct and periodically participate in
Business Conduct training sessions as part of the Continuing Professional
Development requirement
Duty to disclose any actual or potential conflicts of interest to the Company
DUTY OF AGENTS TO THE CLIENTS
Duty to not co-mingle the personal funds with the premium payments of the
clients and to encourage their clients to pay such directly to the Company's
Office
Duty to not manipulate sales for purpose of qualifying for incentives, contests

or awards
Duty to comply with the Best Practices on Documents and with the
Procedure for Delivery of Policies and other Documents
Duty of agents to not make and name themselves as trustees, assignees,
owners or beneficiaries of any of their client's policies
DUTY OF AGENTS TO THE COMPANY
Duty to use only the approved advertisement, marketing and sales materials
of the company
Duty to keep the client's information and data private
Duty to not commit breach of trust and misappropriate of premiums
Duty to cooperate and render full assistance in investigation, inspection and
audit
DUTY OF AGENCY LEADERS
Duty to recruit, select and appoint only those prospects that are qualified in
accordance with the Insurance Code and other pertinent laws.
Disciplinary Sanctions
Subject to the discretion of the Commissioner in accordance with the laws
herein, as provided under Section 438 of RA 10607, the following are the
sanctions: (a) Fines not less than Five thousand pesos (P5,000.00) and not
more than Two hundred thousand pesos (P200,000.00); and (b) Suspension, or
after due hearing, removal of directors and/or officers and/or agents.
Penalties (NOTE: Letter of Warning must first be given)
Suspension of Selling Privileges
Termination of agent's contract
Issuance of Release Order once a suspended agent is cleared

**
Circular Letter: 2013-37
Category: Insurance Commissioner
Date: 06 December 2013
CIRCULAR LETTER
TO: All Insurance Commission Officials and Employees, Companies and Individuals under the
Supervision of the Insurance Commission and all Others Concerned
SUBJECT: No Gifts Policy
I. INTRODUCTION
So as to uphold honesty and integrity in serving the public and to take affirmative
and effective measures against graft and corruption, the 'No Gifts Policy' is hereby
implemented to provide a more transparent and effective framework. It is aimed to
promote the ethical business practices and high standards of corporate
governance.
II. HISTORY
Supersedes to Circular No. 12-2012 or the Gifts Policy dated 01 June 2012

III. APPLICABLE LAW

Section 27, Article II and Section 1, Article XI of the 1987 Constitution
Section 1 and Section 3 of Republic Act No. 3019 or the Anti-Graft and Corrupt
Practices Act
Section 2 and Section 7(d) Republic Act No. 6713 or the Code of Conduct and
Ethical Standards for Public Officials and Employees
Rule II of Department Order No. 21-2010 of the Department of Finance or the
Policy on Gift Giving and Acceptance of Gifts, Donations and Sponsorship
IV. CONTENTS
Definition of 'gift'
First and foremost, gift refers to a thing disposed of gratuitously in favor of
another, and shall include a simulated sale or a disposition onerous to the giver
and/or unduly beneficial to the recipient. Gift shall also include a right, privilege,
entertainment, exemption, or any other similar act of liberality in favor of
another. This shall also include invitation for breakfast, lunch, snacks or dinner
outside the premises of the Office.
Coverage
The said Policy covers ALL officials and employees, including contractual and
job order employees of the Insurance Commission as well as consultants,
conservators, receivers, and liquidators appointed by the Commissioner with
respect to the Company assigned them. This shall also cover the agents or any
person who acts in representation of the persons mentioned above.
Prohibitions
The Commission, its officers and employees, shall NOT SOLICIT, DIRECTLY
OR INDIRECTLY, any gifts, gratuity, favor, entertainment, loan or use, anything
of pecuniary value from a person, groups, associations, suppliers, or juridical
entitites, whether from the public or the private sectors, at any time, on or off the
work premises, in the course of their official duties or in connection with any
operation being regulated by, or any transaction which may be affected by the
functions of their office.
The Insurance Commission officials and employees shall NOT accept any
remuneration BEYOND what they are legally entitled to receive in their official
capacity in accordance with law.
Exemptions
The acceptance of emergency contributions or assistance of reasonable value
or amount in case of death, illness, disaster, and other similar situations
The acceptance of corporate gifts as token of gratitude during anniversary and
special occassions
The acceptance of seminar bags and contents, partaking moderately priced
meals and beverages at official events, provided that everyone in the said event
was given the same
The acceptance of books, pamphlets, publications and data useful to the
Commission
The acceptance of scholarship or fellowship grant, travel grants or expense for
travel
The acceptance or availment by the Commission of grants from local or foreign
institutions in the pursuit of the mandates, projects and activities such as those

**

coming from Asian Development Bank (ADB), World Bank (WB), etc.
The acceptance of performance-based reward and similar benefits in
accordance with law
Procedures
The gifts which are considered inappropriate or impractical to return shall be
immediately handed over to the Deputy Commissioner for Management Support
Services. Then, the said gifts shall be subsequently forwarded to the Records
Section of the Administrative Division for proper recording or storage.
A Registry Book of Gifts shall be maintained in the Records Section to keep
track of the gifts not returned to the giver.
Sanctions
Penalty Clause provides that any violation of the policy will be subject to the
administrative sanctions provided under the Civil Service Law and Rules,
Revised Rules on Administrative Cases in the Civil Service, and other applicable
laws. Insofar practicable and deemed proper, all cases must first be resolved by
the Commission.