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INSURANCE
COMPANIES
Permanent Insurance
It covers you for your entire lifespan, typically until you are 100
years old.
Other Insurances
Personal Accident Insurances
A particular type of insurance which provides benefits/indemnity in case of losses
to the person or physical well-being of an insured, individual arising out of accident.
Direct Losses
Accidental Loss of life or death which results out of injuries sustained by the
individual and accidental loss sight or eyes.
Indirect Losses
The individual may be disabled for some time, either totally or partially. He
could be confined in the hospital or bed-ridden at the house in which case he is unable to
engage in his usual means of livelihood.
Entities Engaged in Insurance Business
7. Manulife Philippines
a) Primary Functions
b) Secondary Functions
Primary Function
PRIMARY FUNCTION
Insurance provides certainty Insurance provides protection
01 Insurance provides certainty of 02 The main function of the
payment at the uncertainty of insurance is to provide
loss. The uncertainty of loss can protection against the probable
be reduced by better planning chances of loss. The time and
and administration. There is the amount of loss are uncertain and
uncertainty of happening of time at the happening of risk, the
and amount of loss. Insurance person will suffer the loss in the
removes all these uncertainties absence of insurance.
and the assured is given
certainty of payment of loss. The
insurer charges the premium for
providing the said certainty.
Primary Function
PRIMARY FUNCTION
Risk-Sharing
03 The risk is uncertain, and
therefore, the loss arising from
the risk is also uncertain. When
risk takes place, the loss is
shared by all the persons who
are exposed to the risk.
Secondary Function
PRIMARY FUNCTION
Prevention of loss It Provides Capital
01 The insurance joins hands with 02 The insurance provides capital to
those institutions which are society. The accumulated funds
engaged in preventing the losses are invested in the productive
of the society because the channel. The death of the capital
reduction in loss causes the of the society is minimized to a
lesser payment to the assured greater extent with the help of
arid so more saving is possible investment in insurance.
which will assist in reducing the
premium.
Secondary Function
PRIMARY FUNCTION
It Improves Efficiency It helps Economic Progress
03 The insurance eliminates worries 04 The insurance by protecting the
and miseries of losses at death society from huge losses of
and destruction of property. The damage, destruction, and death,
carefree person can devote his provides an initiative to work
body and soul together for better hard for the betterment of the
achievement, it improves not masses.
only his efficiency but the
efficiencies of the masses are
also advanced.
Form of Business Organization
“Under the Republic Act 10607”
• SECTION 191. The provision of the Corporation Code, as amended, shall apply
to all insurance corporations now, or hereafter engaged in business in the
Philippines insofar as they do not conflict with the provisions of this chapter.
Form of Business Organization
The term shall also include professional reinsurers defined in Section 288.
• SECTION 193. No insurance company shall transact any insurance business in the
Philippines until after it shall have obtained a certificate of authority for that purpose
from the Commissioner upon application therefor and payment by the company
concerned of the fees hereinafter prescribed.
Paid in capital of Domestic Insurance companies
Under SECTION 194.
• Except as provided in Section 289, no VEHICLE
new domestic life or non-life insurance
company shall, in a stock corporation,
engage in business in the Philippines
unless possessed of a paid up capital
equal to at least One billion pesos
(P1,000,000,000.00)
• Domestic insurance company already
doing business in the Philippines shall
have a net worth by June 30, 2013 of
Two hundred fifty million pesos.
(P250,000,000.00).
Paid in capital of Domestic Insurance companies
Under SECTION 194.
• The said company must have by December 31, 2016, an additional Three hundred
million pesos (P300,000,000.00) in net worth; by December 31,2019, an additional
Three hundred fifty million pesos (P350,000,000.00) in net worth; and by December
31, 2022, an additional Four hundred million pesos (P400,000,000.00) in net worth.
• Retained Earnings;
• Before issuing such certificate of authority the Commissioner must be satisfied that the
name of the company is not that of any other known company transacting a similar
business in the Philippines, or a name so similar business in the Philippines or a name so
similar as to be calculated to mislead the public. The Commissioner may issue ruled and
regulations on the use of names of insurance companies and other supervised persons or
entities.
• The Certificate of authority issued by the Commissioner shall expire on the last day of
December, three (3) years following its date of issuance and shall be renewable every
three (3) years thereafter, subject to the company’s continuing compliance with the
provisions of this code, circulars, instructions, rulings, or decisions of the Commission.
Investment of Insurance Funds
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Investment of Insurance Funds
An insurance company may:
• Provided, that any or all of such investments shall be with the prior
approval of the Commissioner. Insurance companies may, however,
invest in listed equities of other financial institutions without need of
prior approval by the Commissioner.
Investment of Insurance Funds
Insurance firms allowed to invest in infrastructure
projects
TRAVEL
• Insurance companies in the country have been
given the go-ahead by regulators to invest their
funds in state-led infrastructure project, in a bid to
boost the growth of the Philippine economy and
help these firms meet higher net worth
requirement imposed on them for this year.
Investment of Insurance Funds
Insurance firms allowed to invest in infrastructure projects
• Under Republic Act 10607, or the Amended Insurance Code of the Philippines, new
insurance industry players are required to have P1 billion in paid-up capital, while
existing insurance companies need a paid-up capital of P550 million by December
2016, P900 million by December 2019 and P1.3 billion by December 2022.
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• To safeguard the rights and interest of
the insuring public, pre-need and HMO
customers
The Insurance Commission
FUNCTIONS
• Promulgation and implementation of
policies, rules and regulations governing
the operations of entities engaged in
insurance, pre-need, and HMO
activities as well as benevolent features.
• Licensing of insurance, reinsurance
companies, its intermediaries, mutual
benefit associations, trusts for charitable
uses, pre-need companies, pre-need
intermediaries, and HMO companies.
The Insurance Commission
FUNCTIONS
• Conducting insurance agent’s
examinations, as well as processing of
reinsurance treaties and request for
investments of insurance companies.
• Examination/verification of the
financial condition and methods of
doing business of entities engaged in
insurance business, pre-need, mutual
benefit association, trusts for charitable
uses, and HMO companies.
The Insurance Commission
FUNCTIONS
• Evaluation and preparation of statistical report, studies, researches,
annual reports, and position papers relative to insurance, pre-need
matters, and HMO matters.
• Review of premium rates imposed by life and non-life companies,
mutual benefit associations; statistical reports of adjusters to determine
compliance with establish standards.
• Adjudication of claims and compliance involving loss, damage or liability
incurred by an insurer under any kind of policy or contract of insurance
or suretyship;
• Review and approval of all life and non-life policies, pre-need, and HMO
plans before sale to prospective clients.
The Insurance Commission
The Insurance Commission is being tasked to
implement, execute, and require compliance of
insurance companies doing business doing business
in the Philippines of the new provisions of the
Insurance Code of 1978. They are as follows:
1) Casualty Insurance
2) Suretyship
3) Consolidation and Merger of Insurance
Companies
The Insurance Commission
The Insurance Commission is being tasked to
implement, execute, and require compliance of
insurance companies doing business doing business in
the Philippines of the new provisions of the Insurance
Code of 1978. They are as follows:
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Insurance PowerPoint Template
4.) Mutualization of Stock Life Insurance Companies
(of Title 17, Chapter III)
5.) Holding Companies (of Title 20, Chapter III)
6.)Compulsory Motor Vehicle Liability Insurance (of
Chapter VI)
7.)Mutual Benefits Association (of Title 1, Chapter
VII)
8.)Trusts for Charitable Uses (of Title 2, Chapter VII)
Insurance PowerPoint Template
This is a sample text. Insert your desired text
here. This is a sample text. Insert your desired VEHICLE
text here.
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