TITLE 7 –
RATING ORGANIZATION AND RATE
MAKING
SECTION 364. POWER OF COMMISSIONER
AS TO NON-COMPLIANCE WITH THE
PROVISIONS ON RATE MAKING.
 What can the Commissioner do
after finding that the rate filings do
not comply with the provisions on
rate making, or they are
inadequate, excessive, unfairly
discriminatory or unreasonable?
He may order the rate filing to be
withdrawn and at the expiration of
sixty (60) days thereafter, the same
shall be deemed no longer on file.
 Should such order affect the
contract or policy made?
No, as long as it is made prior to the
expiration of such sixty (60) day
period.
 What is the due process of this
order?
Commissioner shall give notice, not
less than ten (10) days in advance, and
a hearing, to the rating organization, or
to the insurer which filed the same.
SECTION 365. PROHIBITION ON THE
DEVIATION FROM THE RATES UNDER THE
STANDARDS.
 Can any member or subscriber of a
rating organization or insurance
company charge rate deviating
from the rates under its standards?
No. Members or subscribers of rating
organizations or insurance companies
shall not charge rate or receive
premium which deviates from the
rates, rating plans, classifications,
schedules, rules and standards, made
and last filed by a rating organization,
or shall issue or make any policy or
contract involving a violation of rate
filings.
SECTION 366. EXCEPTION TO THE USE OF
RATES IN EXCESS FROM THAT OF THE
STANDARDS.
 May a rate in excess still be used on
any specific risk?
Yes, as long as the insurer has made a
written application stating his reasons
thereof, and was filed and approved by
the Commissioner.
SECTION 367. ADJUSTMENT OF RATES BY
REASON OF EXCESSIVENESS,
DISCRIMINATION, INADEQUACY OR
UNREASONABLENESS
 What shall the Commissioner do
when he determines after notice
and hearing that the rates charged
or filed on any class of risks are
excessive, discriminatory,
inadequate or unreasonable?
The Commissioner shall order the
rates to be appropriately adjusted.
SECTION 368. MEMBERSHIP TO RATING
ORGANIZATIONS
 Is there a necessity that an insurer
be a member of any rating
organization?
No, it is not required that any insurer
become a member of or subscriber to
any rating organization.
SECTION 369. MODIFICATION OF RATES
FOR PERSONS UNABLE TO PROCURE
INSURANCE CONTRACTS
 Can insurance companies agree to
provide reasonable rates or modify
the same with respect to those
applicants who are in good faith
entitled but are unable to procure
such insurance?
Yes, as long as such agreement and
rate modifications are approved by the
Commissioner and do not apply to
workmen’s compensation insurance.
SECTION 370. PROHIBITION ON THE
SHARING OF COMMISSION TO THE
INSURED
 Are insurance companies, agents or
brokers allowed to negotiate an
insurance contract to an insured
and giving or sharing a commission
thereto not specified in the policy?
No, if such was made as an inducement
to the making of such insurance.
  Are the same persons allowed to
offer rebates from the premiums
paid by an insured not specified in a
policy?
No, if it is made for a valuable
consideration or inducement for any
kind.
SECTION 371. PROHIBITION TO COMPARE
POLICIES WITH OTHER PERSONS
 Are insurance companies, agents, or
any other person allowed to
compare policies to any person?
No, the law prohibits the same for the
purpose of inducing or tending to
induce such person to lapse, forfeit, or
surrender his said insurance.
SECTION 372. PENALTY PROVISION ON
THE VIOLATIONS ON RATING
ORGANIZATIONS AND RATE MAKING
 What is the penalty for any
insurance company, rating
organization, agent, broker or other
person who violates the provisions
on Rating Organizations and Rate
Making?
They shall be ordered for the payment
of a fine not to exceed Twenty-five
thousand pesos (P25,000.00) for each
such offense, and shall immediately
suspend or revoke the license issued to
such insurance company, rating
organization, agent, or broker.
TITLE 8 –
PROVISIONS COMMON TO AGENTS,
BROKERS AND ADJUSTERS
SECTION 373-374. PERSONS AUTHORIZED
TO CONTACT WITH THE INSURED
THROUGH THE INSURER
 How shall the insured make contact
with the insurer?
Through any of the following:
a.) Agent. – The authority under
which the insurer operates is
delegated through an agency
contract.
b.) Solicitor. – An individual
authorized by an insurance agent
or broker to solicit contracts of
insurance or annuities.
c.) Broker. – Broker acts on behalf of
the insured. He is an independent
contractor and is remunerated
usually on a commission basis.
d.) Service Representative. – He is a
specialist employed by the insurer
on a salary basis to work with and
assist agents in writing specialized
lines.
TITLE 9 –
BANCASSURANCE
SECTION 375-377. BANCASSURANCE
 What is bancassurance?
It means the presentation and sale to
bank customers by an insurance
company of its insurance products
within the premises of the head office
of such bank. It involves the cross-
selling of a financial product to a bank
client inside bank premises.
 What are the requirements for
bancassurance?
a.) The presentation and sale of
insurance company’s insurance
products must be done within the
premises of the head office of the
bank.
b.) The bank must be duly licenses by
the Bangko Sentral ng Pilipinas
under such rules and regulations
promulgated by the
Commissioner and the BSP.
c.) The insurance company must
possess all the requirements
prescribed by the Commissioner
and the BSP before it can enter
into a bancassurance
arrangement.
d.) The insurance product, whether
life or non-life, to be issued or
delivered must be in the form
previously approved by the
Commissioner; and