Section 16
SEC. 16. Section Two hundred (A) of the same Act is further amended by adding a new section to be known as Section Two hundred (B) to read as follows: "SEC. 200 (B). 1. Before investing any of its funds in any other classes of securities or types or investments, every domestic insurance company shall, to the extent of an amount equal in value to fifty per centum (50%) of the minimum paid-up capital required under Section one hundred ninety-five of this Act, invest its funds only in bonds or other evidences of debt of the Government of the Philippines or its political subdivisions or instrumentalities, or of government-owned or controlled corporations and entities, including the Central Bank of the Philippines, "2. Alter satisfying the requirements contained in the preceding paragraph, any domestic non-life insurance company, may invest to an amount prescribed below its funds in, or otherwise, acquire or loan upon, only the classes of investments described in Section Two hundred of the Insurance Act, as amended, or in securities issued by any 'registered enterprise,' as this term is defined in the Investment Incentives Act: Provided, That (a) no more than twenty per centum (20%) of such amount shall be invested in the lot and building in which the insurance company conducts its business; and (b) the total investment of an insurance company in any registered enterprise shall not exceed fifteen per centum (15%) of the capital of said investor nor twenty per centum (20%) of the capital of the registered enterprise, unless previously authorized by the Insurance Commission: And provided, further, That such reserve investments, including its minimum capital investments, free from any lien or encumbrance, shall be at least equal in amount to sixty per centum (60%) of the aggregate amount of (a) its legal reserve, as provided in Section 186 of the Insurance Act, and (b) its reserve fund held for reinsurers as provided for in the pertinent treaty provision in the case of reinsurance ceded to authorized insurers. "3. After satisfying the requirements contained in paragraphs 1 and 2 hereof, any non-life insurance company, may invest any portion of its funds representing earned surplus in any of the investments described in Sections 197, 198 and 200 of the Insurance Act, as amended, or in any securities issued by any registered enterprise' aforementioned: Provided, That no investment in stocks or bonds of any single entity shall in the aggregate, exceed fifteen per centum (15%) of the capital of the investing company or twenty per centum (20%) of the capital of the issuing company, whichever is the lesser, unless otherwise approved by the Insurance Commission. "4. After satisfying the minimum capital investment required in paragraph 1 hereof, any life insurance company may invest its legal policy reserve, as provided in Section 183 of the Insurance Act, as well as any portion of its earned surplus, in any of the classes of securities or types of investments described in Sections 197, 198, 200 and 200-A, of the Insurance Act, as amended, subject only to the limitations therein contained, and in any securities issued by any 'registered enterprise' aforementioned, in such amounts as may be approved by the Insurance Commission."