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SEC. 169. In addition to the duties now imposed upon him by law, the Insular Treasurer shall act as Insurance Commissioner and in addition to his present official title he shall hereafter be designated as Insurance Commissioner ex officio.
SEC. 170. For the purposes of this chapter unless the context otherwise requires the terms "company" or "insurance company" shall include all corporations, associations, partnerships, or individuals engaged as principals in the insurance business, excepting fraternal and benevolent orders and societies. "Domestic companies" shall include companies formed, organized or existing under the laws of the Philippine Islands. "Foreign companies" when used without limitation shall include companies formed, organized, or existing under any laws other than those of the Philippine Islands.
SEC. 171. It shall be the duty of the Insurance Commissioner to see that all laws relating to insurance and insurance companies are faithfully executed and perform the duties imposed upon him by this Act. He may issue such rulings, instructions, and orders as he may deem necessary to secure the enforcement of the provisions of this Act, subject to the approval of the Secretary of Finance and Justice.
SEC. 172. After the becoming effective of this Act, no foreign or domestic insurance company shall transact any new business in the Philippine Islands until after it shall have obtained a certificate of authority for that purpose from the Insurance Commissioner. No such certificate of authority shall be granted to any such company until the Insurance Commissioner shall have satisfied himself by such examination as he may make and such evidence as he may require that such company is qualified by the laws of the Philippine Islands to transact business herein. Said certificate of authority shall expire on the last day of June of each year and shall be renewed annually if the company is continuing to comply with all of the provisions of this chapter. Before issuing such certificate of authority, the Insurance Commissioner must be satisfied that the name of the company is not that of any other known company transacting a similar business, or a name so similar as to be calculated to mislead the public. Every company receiving any such certificate of authority shall be subject to the insurance laws of the Philippine Islands and to the jurisdiction and supervision of the Insurance Commissioner. An appeal may be taken from any decision of the Insurance Commissioner, refusing to grant such certificate of authority to the Secretary of Finance and Justice whose decision shall be final.
SEC. 173. The Insurance Commissioner shall require each insurance company to keep its books, records, accounts, and vouchers in such manner that he or his authorized representatives may readily verify its annual statement and ascertain whether the company is solvent and has complied with the provisions of this chapter.
SEC. 174. The Insurance Commissioner shall at least once a year and whenever he considers the public interest so demands, cause an examination to be made into the financial condition of every domestic insurance company. Such company shall submit to the examiner all such books, papers, and securities as he may require and such examiner shall also have the power to examine the officers of such corporation under oath touching its business and financial condition, and the authority of any such company to transact business in the Philippine Islands that refuses to allow such examination, shall be revoked by the Insurance Commissioner, and such company shall not thereafter be allowed to transact further business in the Philippine Islands until it has fully complied with the provisions of this section.
SEC. 175. If the Insurance Commissioner is of the opinion upon examination or other evidence that any foreign or domestic insurance company is in an unsound condition, or that it has failed to comply with any provision of law obligatory upon it, or that its condition is such as to render its proceedings hazardous to the public or to its policy holders or that its actual assets exclusive of its capital are less than its liabilities, including unearned premiums and reinsurance reserve, the Insurance Commissioner is authorized, subject to appeal to the Secretary of Finance and Justice, to revoke or suspend all certificates of authority granted to such insurance company, its officers or agents, and no new business shall thereafter be done by such company or for such company by its agents in the Philippine Islands while such revocation, suspension or disability continues or until its authority to do business is restored by the Insurance. The decision of the Secretary of Finance and Justice in all such cases shall be final. Requirement.
SEC. 176 The Insurance Commissioner must cause every company, before engaging in the business of insurance, to file in his office as follows: (a) A certified copy of the last annual statement or a verified financial statement exhibiting the condition and affairs of such company. (b) If incorporated under the laws of the Philippine Islands, a copy of the articles of incorporation and by-laws and any amendments to either, certified by the chief of the division of archives, patents, copyrights, and trademarks to be a copy of that which is filed in his office. (c) If incorporated under any laws other than those of the Philippine Islands, a copy of the articles of incorporation and by-laws and any amendments to either if organized or formed under any law requiring such to be filed, duly certified by the officer having the custody of same, or if not so organized, a copy of the law, charter, or deed of settlement under which the deed of organization is made, duly certified by the proper custodian thereof, or proved by affidavit to be a copy; also, a certificate under the hand and seal of the proper officer of such state or country having supervision of insurance business therein, if any there be, that such corporation or company is organized under the laws of such state or country, with the amount of capital stock or assets and legal reserve required by this Act. (d) If not incorporated, a certificate setting forth the nature and character of the business, the location of the principal office, the names of the persons and of those composing the company, firm, or association, the amount of actual capital employed or to be employed therein, and the names of all officers and persons by whom the business is or may be managed. The certificate must be verified by the affidavit of the chief officer, secretary, agent, or manager of the company; and if there are any written articles of agreement or company, a copy thereof must accompany such certificate.
SEC. 177. The Insurance Commissioner must require as a condition precedent to the transaction of insurance business in the Philippine Islands by any foreign insurance company, that such company file in his office a written power of attorney designating some person who shall be a resident of the Philippine Islands, on whom any notice provided by law or by any insurance policy, proof of loss, summons, and other process may be served in all actions or other legal proceedings against such company, and consenting that service upon such agent shall be admitted and held as valid as if served upon the foreign company at its home office. Any such foreign company shall, as a further condition precedent to the transaction of insurance business in the Philippine Islands, make and file with the Insurance Commissioner an agreement or stipulation, executed by the proper authorities of said company in form and substance as follows: "The (name of company) does hereby stipulate and agree in consideration of the permission granted by the Insurance Commissioner to it to transact business in the Philippine Islands, that if at any time said company shall leave the Philippine Islands, or cease to transact business therein, or shall be without an agent in the Philippine Islands on whom any notice, proof of loss, summons, or other legal process may be served, then in any action or proceeding arising out of any business or transactions which occurred in the Philippine Islands, service of any notice provided by law, or insurance policy, proof of loss, summons, or other legal process may be made upon the Insurance Commissioner, and that such service upon the Commissioner shall have the same force and effect as if made upon the company." Whenever such service of notice, proof of loss, summons, or other legal process shall be made upon the Insurance Commissioner, he must, within ten days thereafter, transmit by mail, postage paid, a copy of such notice, proofs of loss, summons, or other legal process to the company at its home or principal office. The sending of such copy by the commissioner shall be a necessary part of the service of the notice, proof of loss, or other legal process.
SEC. 178. No foreign insurance company shall engage in business in the Philippine Islands unless possessed of paid up unimpaired capital (or assets) and reserve not less than that herein required of domestic insurance companies; and no insurance company organized or existing under the government or laws other than those of the Philippine Islands or any state of the United States shall engage in business in the Philippine Islands until it shall have deposited with the Insurance Commissioner for the benefit and security of its policy holders and creditors in the Philippine Islands securities, satisfactory to the Insurance Commissioner consisting of bonds of the United States or of the Philippine Islands or of the city of Manila or of municipalities in the Philippine Islands authorized by law to issue bonds, or of the government in which such company is organized, or other good securities to the actual market value of one hundred thousand pesos: Provided, That if a company organized or existing under the laws of any government outside of the United States and the Philippine Islands shall have made a deposit with the insurance department of some one of the States of the United States of securities of the character above described to the actual market value of at least four hundred thousand pesos, in exclusive trust for the benefit and security of all the company's policy holders and creditors in the United States and its possessions, such deposit shall be held to be in lieu of the deposit required by this section: And provided, further, That it shall be a sufficient compliance with the provisions of this section if the deposit herein required be made with the Chief of the Bureau of Insular Affairs of the War Department at Washington or with a safe deposit company designated by that officer, which company shall agree to hold the securities so deposited subject to the control of the Chief of the Bureau of Insular Affairs as the representative of the insurance commissioner of the Philippine Islands.
SEC. 179. The Insurance Commissioner shall hold the securities, deposited as aforesaid, for the benefit and security of all the policy holders of the company depositing the same, but shall, so long as the company shall continue solvent, permit the company to collect the interest or dividends on the securities so deposited, and, from time to time, with his assent, to withdraw any of such securities, upon depositing with said commissioner other like securities, the market value of which shall be equal to the market value of such as may be withdrawn. In the event of any company ceasing to do business in the Philippine Islands the securities deposited as aforesaid shall be returned upon the company's making application therefor and proving to the satisfaction of the Insurance Commissioner that it has no further liability under any of its policies in the Philippine Islands.
SEC. 180. Every insurance company, doing business in the Philippine Islands, shall annually on or before the thirtieth day of April, of each year, render to the Insurance Commissioner a statement signed and sworn to by the chief officer of such company showing, in such form and detail as may be prescribed by the Insurance Commissioner, the exact condition of its affairs on the preceding thirty-first day of December. Provided, That in case the fiscal year of an insurance company does not terminate with the thirty-first day of December, it shall be deemed a sufficient compliance with this section if the report is made to coincide with the regular fiscal year of the company. In such case the report of the company shall be filed with the Insurance Commissioner within four months after the close of its fiscal year. And provided further, That the Insurance Commissioner may in his discretion, and upon approval of the Secretary of Finance and Justice, grant an extension of not exceeding three months, to any company, upon his being satisfied that the period of four months granted by this section is inadequate with regard to said company.
SEC. 181. Immediately upon approval of the annual statements by the Insurance Commissioner, every insurance company doing business in the Philippine Islands shall publish in two papers of general circulation in the city of Manila, one published in English and one in the Spanish language, a full synopsis of its annual financial statement showing fully the condition of its business, and setting forth its resources and liabilities.
SEC. 182. Every life insurance company, doing business valuation in the Philippine Islands, shall annually make a valuation of all policies, additions thereto, unpaid dividends, and all other obligations outstanding on the thirty-first day of December of the preceding year. All such valuations shall be made upon the net premium basis, according to the standard adopted by the company, which standard shall be stated in its annual report. Such standard of valuation, whether on the net level premium, preliminary term, any modified preliminary term, or select and ultimate reserve basis, shall be according to a standard table of mortality, with interest at not less than three nor more than six per cent compound interest. When the preliminary term basis is used the term insurance shall be limited to the first policy year. The results of such valuation shall be reported to the Insurance Commissioner on or before the thirtieth day of April of each year accompanied by a sworn statement of the company's actuary certifying to the figures and stating upon what mortality table it is based, upon what rate of interest the valuation is made, and the methods used in arriving at the results obtained: Provided, That in case the fiscal year of a life insurance company does not terminate with the thirty-first day of December, it shall be deemed a sufficient compliance with this section if the valuation herein required is made to coincide with the regular fiscal year of the company. In such case the result of such valuation shall be reported to the Insurance Commissioner within four months after the close of its fiscal year: And provided further, That the Insurance Commissioner may in his discretion, and upon approval of the Secretary of Finance and Justice, grant an extension of not exceeding three months, to any company, upon his being satisfied that the period of four months granted by this section is inadequate with regard to said company.
SEC. 183. The aggregate net value of the policies of such liability, company so ascertained shall be deemed its reserve liability, to provide for which it shall hold funds in secure investments equal to such net value, above all its other liabilities; and it shall be the duty of the Insurance Commissioner, after having verified, to such an extent as he may deem necessary, the valuation of all policies in force, to satisfy himself that the company has such amount in safe legal securities after all other debts and claims against it have been provided for.
SEC. 184. Hereafter no policy of life or endowment insurance shall be issued or delivered within the Philippine Islands unless it shall contain in substance the following provisions: (a) A provision that the insured is entitled to a grace either of thirty days or of one month within which the payment of any premium after the first year may be made, subject at the option of the company to any interest charge not in excess of six per centum per annum for the number of days of grace elapsing before the payment of the premium, during which period of grace the policy shall continue in full force, but in case the policy becomes a claim during the said period of grace before the overdue premium or the deferred premiums of the current policy year if any are paid, the amount of such premiums, with interest on any overdue premium, may be deducted from any amount payable under the policy in settlement. (b) A provision that the policy shall, in the absence of fraud, be incontestable after two years from its date of issue except for nonpayment of premiums and except for violation of the conditions of the policy relating to military or naval service in time of war. (c) A provision that the policy shall constitute the entire contract between the parties, but if the company desires to make the application a part of the contract it may do so provided a copy of such application shall be indorsed upon or attached to the policy when issued, and in such case the policy shall contain a provision that the policy and the application therefor shall constitute the entire contract between the parties. (d) A provision that if the age of the insured has been misstated the amount payable under the policy shall be such as the premium would have purchased at the correct age. (e) A provision that the policy shall participate in the surplus of the company. (f) A provision specifying the options to which the policy-holder is entitled in the event of default in a premium payment after three full annual premiums shall have been paid. (g) A provision that after three full years premiums have been paid, the company at any time, while the policy is in force, will advance, on proper assignment or pledge of the policy and on the sole security thereof, at a specified rate of interest, a sum equal to, or at the option of the owner of the policy less than, the reserve at the end of the current policy year on the policy and on any dividend additions thereto, less a sum not more than two and one-half per centum of the amount insured by the policy and of any dividend additions thereto; and that the company will deduct from such value any existing indebtedness on the policy and balance of the premium for the current policy year, and may collect interest in advance on the loan to the end of the current policy year; which provision may further provide that such loan may be deferred for not exceeding six months after the application therefor is made. A company may, in lieu of the provision hereinabove permitted for the deduction from a loan on the policy of a sum not more than two and one-half per centum of the amount insured by the policy and of any dividend additions thereto, insert in the policy a provision that one-fifth of the entire reserve may be deducted in case of a loan under the policy, or may provide therein that the deduction may be the said two and one-half per centum or the one-fifth of the said entire reserve at the option of the company. (h) A table showing in figures the loan values, if any, and the options available under the policy each year upon default in premium payments, during at least the first twenty years of the policy. (i) In case the proceeds of a policy are payable in installments or as an annuity, a table showing the amounts of the installments or annuity payments. (j) A provision that the holder of a policy shall be entitled to have the policy reinstated at any time within three years from the date of default unless the cash value has been duly paid, or the extension period expired, upon the production of evidence of insurability satisfactory to the company and the payment of all overdue premiums and any other indebtedness to the company upon said policy with interest at a rate which shall be stipulated in the policy and not exceeding ten per centum per annum, payable annually. Any of the foregoing provisions or portions thereof not applicable to single premium or nonparticipating or term term policies, policies shall to that extent not be incorporated therein; and any such policy may be issued or delivered in the Philippine Islands which in the opinion of the insurance commissioner contains provisions on any one or more of the several foregoing requirements more favorable to the policy holder than hereinbefore required. The provisions of this section shall not apply to policies of reinsurance.
SEC. 185. Every domestic life insurance company, conducted on the mutual plan or a plan in which policy holders are by the terms of their policies entitled to share in the profits or surplus shall, on all policies of life insurance heretofore or hereafter issued, under the conditions of which the distribution of surplus is deferred to a fixed or specified time and contingent upon the policy being in force and the insured living at that time, annually ascertain the amount of the surplus to which all such policies as a separate class are entitled, and shall annually apportion to such policies as a class the amount of the surplus so ascertained, and carry the amount of such apportioned surplus, plus the actual interest earnings and accretions of such fund, as a distinct and separate liability to such class of policies on and for which the same was accumulated, and no company or any of its officers shall be permitted to use any part of such apportioned surplus fund for any purpose whatsoever other than for the express purpose for which the same was accumulated.
SEC. 186. To determine the liability upon the contracts of insurance of any foreign or domestic insurance company, other than life, the Insurance Commissioner shall require such companies to charge as the liabilities for reinsurance of its outstanding policies, in addition to the capital stock and all outstanding claims, a sum equal to fifty per cent of the gross premiums received on policies or risks having not more than a year to run, and pro rata on all gross premiums received having more than a year to run: Provided, That for marine risks the insuring company shall be required to charge as the liability for reinsurance fifty per centum of the premiums written in the policies upon yearly risks, and the full amount of the premiums written in the policies upon all other marine risks not terminated.
SEC. 187. No fire or marine insurance corporation whether foreign or domestic shall insure on any one risk or hazard to an amount exceeding ten per cent of its net assets unless it has provided for reinsurance of the excess over said limit to take effect simultaneously with the original contract.
SEC. 188. No policy of fire insurance shall be pledged, hypothecated, or transferred to any person, firm or company who acts as agent for or otherwise represents the issuing company, and any such pledge, hypothecation, or transfer hereafter made shall be void and of no effect in so far as it may affect other creditors of the insured. AGENTS.
SEC. 189. No insurance company doing business within the Philippine Islands, nor any agent thereof, shall pay any commission or other compensation to any person for services in obtaining new insurance, unless such person shall have first procured from the Insurance Commissioner a certificate of authority to act as an agent of such company as hereinafter provided. No person shall act as agent, sub-agent, or broker, in the solicitation or procurement of applications for insurance, or receive for services in obtaining new insurance any commission or other compensation from any insurance company doing business in the Philippine Islands, or agent thereof, without first procuring a certificate of authority so to act from the Insurance Commissioner, which must be renewed annually on the first day of January, or within six months thereafter. Such certificate shall be issued by the Insurance Commissioner only upon the written application of persons desiring such authority, such application being approved and countersigned by the company such person desires to represent, and shall be'upon a form approved by the Insurance Commissioner, giving such information as he may require. The Insurance Commissioner shall have the right to refuse to issue or renew and to revoke any such certificate in his discretion. No such certificate shall be valid, however, in any event after the first day of July of the year following the issuing of such certificate. Renewal certificates may be issued upon the application of the company. violation, penalty. Any person or company violating the provisions of this section shall be fined in the sum of five hundred pesos. On the conviction of any person acting as agent, subagent, or broker, of the commission of any offense connected with the business of insurance, the Insurance Commissioner shall immediately revoked the certificate of authority issued to him and no such certificate shall thereafter be issued to such convicted person.
SEC. 190. No insurance company, engaged in business in other the Philippine Islands, or any agent thereof, shall make any contract of insurance, or agreement as to policy contract, other than is plainly expressed in the policy issued thereon; nor shall any such company or agent, pay or allow, or offer to pay or allow, as inducement to insurance, any rebate inducements, repayable on the policy, nor shall any particular policy holder of the same class be allowed any advantage in the dividends or other benefits to accrue thereon, or any valuable consideration or inducement whatever not specified in the policy contract of insurance.
SEC. 191. No agent, subagent, broker, or other person, representing any insurance company doing business in the Philippine Islands shall in any way, directly or indirectly divide or offer to divide his commission or other remuneration, or give or offer to give any part of his commission or other remuneration, or any other consideration as an inducement to insurance; nor shall any such company or any agent thereof, as to any new policies of insurance hereafter issued, make any discrimination against any citizen of the Philippine Islands whereby such citizen of the Philippine Islands is given less advantageous rates, dividends or other policy conditions or privileges than are accorded to Caucasians because of his race. Whoever violates this or the preceding section shall be fined in the sum of two hundred pesos for each such offense and upon conviction the certificate of authority of the company, agent, subagent, or broker as the case may be shall be revoked by the Insurance Commissioner.
SEC. 192. It shall be unlawful for any person, company or authorized corporation in the Philippine Islands either to procure, receive, or forward applications for insurance in or to issue or to deliver or accept policies of or for any company or companies not having been legally authorized to transact business in the Philippine Islands, as provided in this chapter ; and any such person, company or corporation violating the provisions of this section shall be deemed guilty of a penal offense, and, upon conviction thereof, shall for each such offense, be punished by a fine of two hundred pesos, or imprisonment for two months, or both in the discretion of the court; Provided, That insurance in companies not authorized to transact business in the Philippine Islands may be placed upon terms and conditions as follows: The Insurance Commissioner may issue a certificate of authority to any regularly authorized fire or marine insurance agent of the Philippine Islands, subject to revocation at any time, permitting the person named therein to procure policies of insurance on risks located in the Philippine Islands for companies not authorized to transact business in the Philippine Islands. Before the agent named in such certificate of authority shall procure any insurance in such company there shall be executed and filed in each case with the Insurance Commissioner by the agent and by the party desiring the insurance affidavits setting forth that the party desiring insurance is after diligent effort unable to procure, in any of the companies authorized to do business in the Philippine Islands, the amount of insurance necessary. Every such agent shall keep a separate account of the business done under the authority of this section, open at all times to the inspection of any authorized Government officer, showing the exact amount and character of such insurance placed for any person, firm or corporation, the gross premium charged thereon, the companies with which the same is placed, the dates of the policies, the terms thereof, and the location of the insured property. Such agent shall likewise make a yearly report to the Collector of Internal Revenue at the time and in the manner prescribed in section eighty-one of Act Numbered Twenty-three hundred and thirty-nine, showing the entire amount of all premiums received by the company he represents under the authority of this section. And such agent shall pay to the Collector of Internal Revenue a tax equal to twice the tax imposed by section seventy-nine of Act Numbered Twenty-three hundred and thirty-nine, which tax shall be paid at the same time and be subject to the same penalty for delinquency as the tax imposed by said Act Numbered Twenty-three hundred and thirty-nine: Provided, however, That the provisions of this section shall not apply to reinsurance. INSURANCE CORPORATIONS.
SEC. 193. The provisions of Act Numbered Fourteen hundred and fifty-nine, known as "The Corporation Law" and its amendments, shall apply to all incorporated insurance companies now or hereafter engaged in business in the Philippine Islands in so far as they do not conflict with the provisions of this chapter.
SEC. 194. Corporations formed or organized to save any person or persons or other corporation harmless from loss, damage, or liability arising from any unknown or future or contingent event, or to indemnify or to compensate any person or persons or other corporation for any such loss, damage, or liability, or to guarantee the contractual obligations or debts of others, shall be known as insurance corporations for the purposes of this chapter. DOMESTIC INSURANCE CORPORATIONS.
SEC. 195. Every insurance corporation hereafter formed or organized under the laws of the Philippine Islands shall, if a stock corporation, have a subscribed capital stock equal to at least two hundred and fifty thousand pesos, fifty per centum of which must be paid up in cash previous to the issuance of any policy, and the residue within twelve months from the date of filing its articles of incorporation. For failure to have its capital stock paid up within the time prescribed the corporation shall not be permitted to take any new risks of any kind or character. If organized as a mutual company, in lieu of such capital stock, it must have available cash assets of at least two hundred and fifty thousand pesos above all liabilities for losses reported expenses, taxes, legal reserve, and reinsurance of all outstanding risks. Any officer, official, or director of the corporation taking or authorizing the taking of any risk for the corporation m violation of the terms of this section shall be punished by imprisonment for not less than one year nor more than five years and by a fine of not less than one thousand nor more than five thousand pesos.
SEC. 196. No domestic insurance corporation shall adopt the name of any existing company transacting a similar business or any name so similar as to be calculated to mislead the public.
SEC. 197. No insurance corporation shall loan any of its money or deposits except upon first mortgages or deeds of trust of unincumbered improved real estate, in cities and centers of population of municipalities in the Philippine Islands when the amount of such loan is not in excess of sixty per centum of the value of such real estate, or upon the security of first mortgages or deeds of trust of actually cultivated, improved and unincumbered agricultural lands in the Philippine Islands when the amount of such loans is not in excess of forty per centum of the value of such land, or upon bonds or other evidence of debt of the Government of the United States, or of the Philippine Islands, or of the city of Manila, or of municipalities in the Philippine Islands authorized by law to issue bonds, or such other securities, deposited as collateral, as may be approved by the Insurance Commissioner: Provided however, That a life insurance corporation may loan its money upon the security of a policy to an amount not exceeding the net reserve value of the policy at the time said loan is made.
SEC. 198. No loan by any insurance corporation on the real estate-security of real estate shall be made unless the title to such real estate shall have first been registered in accordance with the Land Registration Act, or shall be a titulo real duly registered, or have been previously registered under the provisions of the Mortgage Law; that is, under the system of registration established by the laws in force on the date of the passage of Act Numbered Four hundred and ninety-six, entitled "The Land Registration Act."
SEC. 199. It shall be the duty of the officers of the corporation to report quarterly on the first days of January, April, July and October of each year to the Insurance Commissioner a list of such investments as may be made by them, and the Insurance Commissioner may, if such investments, or any of them, seem injudicious to him, require the sale of the same.
SEC. 200. Insurance corporations may purchase, hold, and personal own and convey real and personal property as follows: (a) The lot with the building thereon in which the corporation conducts and carries on its business. (b) Such property, real and personal, as may have been mortgaged, pledged, or conveyed to it in good faith in trust for its benefit by reason of money loaned by it in pursuance of the regular business of the corporation, and such real or personal property as may have been purchased by it at sales under pledges, mortgages, or deeds of trust for its benefit on account of money loaned by it, and such real and personal property as may have .been conveyed to it by borrowers in satisfaction and discharge of loans made by the corporation to them: Provided, however, That any real estate purchased by said corporation in payment or by reason of any loan made by said corporation shall be sold by the corporation within five years after the title thereto has been vested in it. (c) Bonds and other evidences of debt of the Government of the United States or of the Philippine Islands or of the city of Manila or of any municipality in the Philippine Islands authorized by law to issue bonds at the reasonable market value thereof, and such other securities as may be approved by the Insurance Commissioner.
SEC. 201. No insurance corporation shall declare any dividend except from profits remaining on hand after retaining unimpaired: (a) The entire paid up capital stock. (b) In the case of life insurance corporations the legal reserved fund required by section one hundred and eighty-three of this Act. (c) In the case of corporations other than life the legal reserve fund required by section one hundred and eighty-six of this Act. (d) A sum sufficient to pay all losses reported, or in the course of settlement, and all liabilities for expenses and taxes. CONDUCT OF INSURANCE BUSINESS BY PERSONS NOT INCORPORATED.
SEC. 202. No person, partnership, or association of persons shall engage in the business of insurance in the Philippine Islands except as agent of a person or corporation authorized to do the business of insurance in the Philippine Islands, unless possessed of the capital and assets required of an insurance corporation doing the same kind of business in the Philippine Islands and invested in the same manner; nor unless the Insurance Commissioner shall have granted to him or them a certificate to the effect that he or they have complied with all the provisions of law which an insurance corporation doing business in the Philippine Islands is required to observe. Every person, partnership, or association receiving any such certificate of authority shall be subject to the insurance laws of the Philippine Islands and to the jurisdiction and supervision of the Insurance Commissioner in the same manner as if an insurance corporation authorized by the laws of the Philippine Islands to engage in the business of insurance specified in the certificate. GENERAL PENALTY.
SEC. 203. Any person who knowingly violates any provision of this chapter for which no penalty is provided, shall upon conviction be punished by a fine not exceeding five hundred pesos or by imprisonment not exceeding five months or by both such fine and imprisonment in the discretion of the court.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).