Article 73p. 73

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

any time, have the authority to certify to the correctness

of the foregoing documents.

SECTION 347. No accredited actuary shall serve more

than one client or employer at the same time. However,

one already in the employ of an insurance company may

be allowed by the Commissioner to serve a mutual

benefit association or any other insurance company,

provided the following conditions are first complied with:

(a) That the request to engage his services by the

other employer is in writing;

(b) That his present employer acquiesced to it in

writing; and

(c) That he furnishes the Commissioner with copies of

said request and acquiescence.

No external auditor shall be engaged by supervised

persons

or

entities

unless

it

has

been

issued

an

accreditation

certificate

by

the

Commissioner.

The

accreditation certificate shall be valid until December 31

of the third year from issuance unless it is revoked or

suspended.

The

Commissioner

shall issue rules and

regulations to govern the accreditation of the external

auditor

and

the

revocation

or

suspension

of

the

accreditation.

TITLE 7 Rating Organization and Rate Making

SECTION 348. Every organization which now exists or

which may hereafter be formed for the purpose of

making rates to be used by more than one insurance

company authorized to do business in the Philippines

shall be known as a rating organization. The term rate as

used in this title shall generally mean the ratio of the

premium to the amount insured and shall include, as the

context may require, either the consideration to be paid

or

charged

for insurance contracts, including surety

bonds, or the elements and factors forming the basis for

the determination or application of the same, or both.

SECTION 349. Every rating organization which now

exists or which may hereafter be formed shall be subject

to the provisions of this title.

SECTION

350.

No

rating

organization

hereafter

formed shall commence rate-making operations until it

shall have obtained a license from the Commissioner.

Before obtaining such license, such rating organization

shall file with the Commissioner a notice of its intention

to commence rate-making operations, a copy of its

constitution, articles of agreement or association, or of

incorporation,

and

its

bylaws,

a

list

of

insurance

companies that have agreed to become members or

subscribers, and such other information concerning such

rating organization and its operations as may be required

by the Commissioner. If the Commissioner finds that the

organization has complied with the provisions of law and

that it has a sufficient number of members or subscribers

and

is

otherwise

qualified

to

function

as

a

rating

organization, the Commissioner may issue a license to

such rating organization authorizing it to make rates for

the kinds of insurance or subdivisions thereof as may be

specified in such license. No license issued to a rating

organization shall be valid after December 31 of the third

year following its issuance unless it is renewed. No rating

organization

which

now

exists

and

is

not

licensed

pursuant

to

this

section shall continue rate-making

operations

until

it

shall

have

obtained

from

the

Commissioner a license which he may issue if satisfied

that such organization is complying with the provisions of

this

title.

Every

rating

organization

shall

notify

the

Commissioner promptly of every change in:

(a)

Its

constitution,

its

articles

of

agreement or

association or its certificate of incorporation, and its

bylaws, rules and regulations governing the conduct of its

business; and

(b) Its list of members and subscribers.

A member means an insurer who participates in or is

entitled to participate in the management of a rating

organization.

A subscriber means an insurer which is furnished at

its request with rates and rating manuals by a rating

organization of which it is not a member.

SECTION 351. Each rating organization shall furnish its

rating service without discrimination to all of its members

and subscribers, and shall, subject to reasonable rules

and regulations, permit any insurance company doing

business in the Philippines, not admitted to membership,

to become a subscriber to its rating services for any kind

of insurance or subdivisions thereof. Notice of proposed

changes in such rules and regulations shall be given to

subscribers. The reasonableness of any rule or regulation

in its application to subscribers, or the refusal of any

rating organization to admit an insurance company as a

subscriber, shall, at the request of any subscriber or any

such

insurance

company,

be

reviewed

by

the

Commissioner at a hearing held upon at least ten (10)

days' written notice to such rating organization and to

such

subscriber

or

insurance

company.

The

Commissioner

may,

after

such

hearing,

issue

an

appropriate order.

SECTION 352. No rating organization or any other

association shall refuse to do business with, or prohibit or

prevent the payment of commissions to, any person

licensed

as

an

insurance

broker

pursuant

to

the

provisions of Title 1 of this chapter.

SECTION 353. Rating organizations shall be subject to

examination by the Commissioner, as often as he may

deem

such

examination

expedient, pursuant to the

provisions of this Code applicable to the examination of

insurance

companies.

He

shall

cause

such

an

examination of each rating organization to be made at

least once in every five (5) years.

SECTION 354. The Commissioner may suspend or

revoke the license of any rating organization which fails to

comply with his order within the time limited by such

order, or any extension thereof which he may grant. The

Commissioner may determine when a suspension of

license shall become effective and it shall remain in effect

for the period fixed by him, unless he modifies or rescinds

such suspension.

SECTION 355. Any rating organization may subscribe

for or purchase actuarial, technical or other services, and

such services shall be available to all members and

subscribers without discrimination.

SECTION 356. Any rating organization may provide for

the examination of policies, daily reports, binders, renewal

certificates,

endorsements

or

other

instruments

of

insurance, or the cancellation thereof, and may make

reasonable rules governing their submission. Such rules

shall contain a provision that in the event an insurance

company

does

not

within

sixty

(60)

days

furnish

satisfactory evidence to the rating organization of the

correction of any error or omission previously called to its

attention by the rating organization, it shall be the duty of

the

rating

organization

to

notify

the

Commissioner

thereof. All information so submitted for examination

shall be confidential.

SECTION

357.

Cooperation

among

rating

organizations or among rating organizations and insurers

in rate making or in other matters within the scope of this

title is hereby authorized, provided the filings resulting

from such cooperation are subject to all provisions of this

title

which

are

applicable

to

filings

generally.

The

Commissioner may review such cooperative activities and

practices and if he finds that any such activity or practice

is unfair or unreasonable or otherwise inconsistent with

the provisions of this title, he may issue a written order

specifying in what respects such activity or practice is

unfair or unreasonable or otherwise inconsistent with the

provisions of this title, and requiring the discontinuance

of such activity or practice.

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