Section 15
SEC. 15. Section One hundred ninety-five of the same Act is further amended to read as follows: "SEC. 195. No domestic insurance company shall, if a stock corporation, engage in business in the Philippines unless possessed of a paid-up capital stock equal to at least two million pesos: Provided, however, That the Secretary of Finance may, upon recommendation of the Insurance Commission, increase such minimum paid-up capital stock, under such terms and conditions as he may impose, to an amount which, in his opinion, would be sufficient to reasonably assure the solvency of the company and the safety of the interests of the people of this country: Provided, That a domestic insurance company already doing business in the Philippines with a paid-up capital which is less than that herein prescribed shall comply with the requirement increasing its paid-up capital not later than December thirty-one, nineteen hundred seventy-three: Provided, further, That the Secretary of Finance, upon recommendation of the Insurance Commission, may, in addition to the paid-up capital stock, require the stockholders to pay in cash to the company in proportion to their subscription interests a contributed surplus fund of not less than one million pesos, in the case of a life insurance company, or not less than five hundred thousand pesos, in the case of an insurance company other than life. If organized as a mutual company, in lieu of such capital stock, it must have available cash assets of at least one million pesos above all liabilities for losses reported, expenses, taxes, legal reserve, and reinsurance of all outstanding risks, and the contributed surplus fund equal to the amounts required of stock corporations: Provided, That a stock insurance company doing business in the Philippines may, subject to the pertinent laws and regulations which now are or hereafter may be in force, alter its organization and transform itself into a mutual insurance company. "Whenever its paid-up capital, if it be a stock corporation, or its reserve, if it be a mutual corporation, shall upon an examination made pursuant to Section one hundred and seventy four of this Act be found to be impaired, the Insurance Commission shall forthwith direct the company to make good any such deficiency or impairment by cash, to be contributed by all stockholders of record in proportion to their respective interests and paid to the treasurer of the company, within fifteen days from receipt of the order: Provided, That the Insurance Commission, may in its discretion, extend the period to not more than sixty days upon its being satisfied of the good faith of the stockholders in complying with its order: And provided, further, That the company in the interim shall not be permitted to take any new risks of any kind or character unless and until it makes good the deficiency or impairment. "The amount constituting the contributed surplus fund of any domestic insurance company, whether paid to make good any deficiency or impairment, or as a complement of the paid-up capital stock, or for any other purpose, shall not at any time be withdrawn and repaid in cash to the contributing stockholders without the prior approval of the Insurance Commission. "Any officer, official or director of the corporation taking or authorizing the taking of any risk for the corporation in 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."