Article 74p. 74

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

SECTION 358. Every rating organization and every

insurance company which makes and files its own rates,

shall make rates for all risks rated by such organization or

insurance company in accordance with the following

provisions:

(a) Basic classification, manual, minimum, class, or

schedule

rates

or

rating

plans,

shall be made and

adopted for all such risks. Any departure from such rates

shall be in accordance with schedules, rating plans and

rules filed with the Commissioner;

(b) Rates shall be reasonable and adequate for the

class of risks to which they apply;

(c) No rate shall discriminate unfairly between risks

involving

essentially

the same hazards and expense

elements or between risks in the application of like

charges and credits;

(d) Consideration shall be given to the past and

prospective loss experience, including the conflagration

and catastrophe hazards, if any, to all factors reasonably

attributable to the class of risks, to a reasonable profit, to

commissions paid during the most recent annual period

and to past and prospective other expenses. In case of fire

insurance

rates,

consideration shall be given to the

experience of the fire insurance business during a period

of not less than five (5) years next preceding the year in

which the review is made;

(e) Risk may be grouped by classifications for the

establishment

of

rates

and

minimum

premiums.

Classification rates may be modified to produce rates for

individual risks in accordance with rating plans which

establish standards for measuring variations in hazards or

expense provisions, or both. Such standards may measure

any difference among risks that can be demonstrated to

have a probable effect upon losses or expenses.

SECTION

359.

No

rating

organization

and

no

insurance company which makes and files its own rates

shall make or promulgate any rate or schedule of rates

which is to be applied to any fire risk on the condition

that the whole amount of insurance on any risk or any

specified part thereof shall be placed with the members

of or subscribers to such rating organization or with such

insurer.

SECTION

360.

Every

insurance

company

doing

business in the Philippines shall annually file with the

rating organization of which it is a member or subscriber,

or with such other agency as the Commissioner may

designate, a statistical report showing a classification

schedule of its premiums and losses on all kinds or types

of insurance business to which Section 358 is applicable,

and such other information as the Commissioner may

deem necessary or expedient for the administration of

the provisions of this title.

SECTION 361. Every non-life rating organization and

every non-life insurance company doing business in the

Philippines shall file with the Commissioner, except as to

risks which by general custom of the business are not

written according to manual rates or rating plans, every

rate manual, schedule of rates, classification of risks,

rating

plan,

and

every

other

rating

rule and every

modification of any of the foregoing which it proposes to

use. An insurance company may satisfy its obligation to

make such filings for any kind or type of insurance by

becoming

a

member

of

or

subscriber

to

a

rating

organization which makes such filings for such kind or

type of insurance, and by authorizing the Commissioner

to accept such filings of the rating organization on behalf

of such insurance company.

SECTION 362. Every manual or schedule of rates and

every rating plan filed as provided in the preceding

section shall state or clearly indicate the character and

extent of the coverage to which any such rate or any

modification thereof will be applied.

SECTION 363. The Commissioner shall review filings

as soon as reasonably possible after they have been made

in

order

to

determine

whether

they

meet

the

requirements

of

this

title.

When

a

filing

is

not

accompanied

by

the

information

upon

which

the

insurance

company

supports

such

filing,

and

the

Commissioner does not have sufficient information to

determine whether such filing meets the requirements

of this title, he shall require such insurance company to

furnish the information upon which it supports such

filing. The information furnished in support of a filing may

include:

(a) The experience or judgment of the insurance

company or rating organization making the filing;

(b) Its interpretation of any statistical data it relies

upon;

(c) The experience of other insurance companies or

rating organization; or

(d) Any other relevant factors.

SECTION 364. If the Commissioner finds that any rate

filings theretofore filed with him do not comply with the

provisions of this title or that they provide rates or rules

which are inadequate, excessive, unfairly discriminatory

or otherwise unreasonable, he may order the same

withdrawn

and

at

the

expiration of sixty (60) days

thereafter the same shall be deemed no longer on file.

Before

making

any

such

finding

and

order,

the

Commissioner shall give notice, not less than ten (10) days

in advance, and a hearing, to the rating organization, or to

the insurer, which filed the same. Such order shall not

affect any contract or policy made or issued prior to the

expiration of such sixty (60)-day period.

SECTION 365. No member or subscriber of a rating

organization, and no insurance company doing business

in

the

Philippines,

or

agent,

employee

or

other

representative of such company, and no insurance broker

shall charge or demand a rate or receive a premium

which

deviates

from

the

rates,

rating

plans,

classifications, schedules, rules and standards, made and

last filed by a rating organization or by or on behalf of the

insurance company, or shall issue or make any policy or

contract involving a violation of such rate filings.

SECTION 366. Notwithstanding any other provisions

of this title, upon the written application of the insurer,

stating his reasons therefor, filed with and approved by

the Commissioner, a rate in excess of that provided by a

filing otherwise applicable may be used on any specific

risk.

SECTION

367.

Whenever

the Commissioner shall

determine, after notice and a hearing, that the rates

charged or filed on any class of risks are excessive,

discriminatory,

inadequate

or

unreasonable,

he shall

order that such rates be appropriately adjusted. For the

purpose of applying the provisions of this section, the

Commissioner

may

from

time

to

time

approve

reasonable classifications of risks for any or all such

classes, having due regard to the past and prospective

loss experience, including conflagration or catastrophe

hazards, if any, to all other relevant factors and to a

reasonable profit.

SECTION 368. Nothing contained in this title shall be

construed as requiring any insurer to become a member

of or subscriber to any rating organization.

SECTION 369. Agreements may be made among

insurance

companies

with

respect

to

the

equitable

apportionment among them of insurance which may be

afforded applicants who are in good faith entitled to but

are unable to procure such insurance through ordinary

methods and such insurance companies may agree

among themselves on the use of reasonable rates and

modifications for such insurance, such agreements and

rate modifications to be subject to the approval of the

Commissioner: Provided, however , That the provisions of

this section shall not be deemed to apply to workmen's

compensation insurance.

SECTION 370. No insurance company doing business

in the Philippines or any agent thereof, no insurance

broker, and no employee or other representative of any

© Compiled by RGL

74 of 211