The INSURANCE

COMMISSIONER
Law 139 Insurance Law

GILBERT R. HUFANA
Professor
 Powers of the Insurance
Commissioner
• Sec. 437-438, ICP – Administrative Powers
• Sec 439, ICP – Adjudicative Power
• These sections enumerate the powers and
duties of the Insurance Commissioner.
• He is vested with regulatory as well as with
adjudicatory authority.
 Administrative Powers
• To see that all laws relating to insurance,
insurance companies and other insurance
matters are faithfully executed
• Have sole and exclusive authority to regulate the
sale of variable contracts, provide licensing of
persons selling such contracts & to issue
reasonable rules and regulations governing the
same.
 Administrative Powers
• Issue rulings, instructions, circulars, orders and
decisions as he may deem necessary to secure the
enforcement of the Insurance Code subject to the
approval of the Secretary of Finance.
• Impose upon insurance companies, their directors,
officers and agents for any willful failure or refusal
to comply with or violation of any provision of the
Insurance Code, ruling, instruction, circular, order
of the Insurance Commissioner or any commission
of irregularities or conducting business in an
unsafe or unsound manner
 Adjudicative Powers
• Adjudicate claims and complaints involving any
loss, damage or liability for which an insurer may
be answerable under any kind of policy or
contract of insurance, contract of suretyship,
contract of reinsurance or for which a mutual
benefit association may be held liable under
membership certificates it issued to its members.
 Jurisdiction of the IC
• The IC has concurrent jurisdiction with the regular
courts with the regular courts to hear and decide
claims for which an insurer may be answerable
under any kind of policy or contract of insurance
where the amount of loss, damage or liability
does not exceed any single claim of FIVE (5)
Million pesos (Php 5,000,000.00).
• The jurisdictional amount excludes interests,
costs and attorney’s fees being claimed
 Appeal from decision
of the IC
• Under circular 1-91 issued by the Supreme
Court on Feb. 27, 1991, the appeal of a party
affected by a final order, decision or judgement
of the IC shall be taken to the Court of Appeals
within 15 days from notice
 Appeal from decision
of the IC
• The IC’s resolution and order which were issued
in the performance of administrative and
regulatory duties and functions should have to
be appealed to the Office of the Secretary of
Finance.
– Almedras Mining Corporation v. Office of the
Insurance Commission 160 SCRA 656
– Phil. American Life Insurance Company v. Ansaldo
234 SCRA 509
END OF LECTURE