Article 82p. 82

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

self-regulatory

organization

(other

than

a

summary

proceeding pursuant to paragraph (b) of this section) the

self-regulatory organization shall bring specific charges,

provide notice to the person charged, afford the person

charged with an opportunity to defend against the

charges,

and

keep

a

record

of

the

proceedings. A

determination to impose a disciplinary sanction shall be

supported by a written statement of the offense, a

summary of the evidence presented and a statement of

the sanction imposed.

(b) A self-regulatory organization may summarily:

(1)

Suspend

a

member,

participant

or

person

associated with a member who has been or is expelled or

suspended from any other self-regulatory organization; or

(2)

Suspend

a

member

who

the

self-regulatory

organization finds to be in such financial or operating

difficulty that the member or participant cannot be

permitted to continue to do business as a member with

safety to investors, creditors, other members, participants

or the self-regulatory organization: Provided, That the

self-regulatory

organization

immediately

notifies

the

Commission of the action taken. Any person aggrieved by

a summary action pursuant to this paragraph shall be

promptly afforded an opportunity for a hearing by the

association in accordance with the preceding paragraph.

The Commissioner, by order, may stay a summary action

on his own or upon application by any person aggrieved

thereby, if the Commissioner determines summarily or

after due notice and hearing (which hearing may consist

solely of the submission of affidavits or presentation of

oral arguments), that a stay is consistent with the public

interest and the protection of the insuring public.

(c) A self-regulatory organization shall promptly notify

the Commission of any disciplinary sanction on any

member thereof or participant therein, any denial of

membership or participation in such organization, or the

imposition

of any disciplinary sanction on a person

associated with a member or a bar of such person from

becoming so associated. Within thirty (30) days after such

notice,

any

aggrieved

person

may

appeal

to

the

Commissioner from, or the Commissioner on its own

motion within such period, may institute review of, the

decision

of

the

self-regulatory

organization,

at

the

conclusion of which, after due notice and hearing (which

may consist solely of review of the record before the

self-regulatory

organization),

the

Commissioner

shall

affirm,

modify

or

set

aside

the

sanction.

In

such

proceeding, the Commissioner shall determine whether

the aggrieved person has engaged or omitted to engage

in the acts and practices as found by the self-regulatory

organization, whether such acts and practices constitute

willful violations of this Code, any other law administered

by the Commission, the rules or regulations thereunder,

or

the

rules

of

the

self-regulatory

organization

as

specified by such organization, whether such provisions

were applied in a manner consistent with the purposes of

this Code, and whether, with due regard for the public

interest and the protection of investors, the sanction is

excessive or oppressive.

CHAPTER X The Insurance Commissioner

TITLE l Administrative and Adjudicatory Powers

SECTION 437. The Insurance Commissioner shall be

appointed

by

the

President of the Republic of the

Philippines

for

a

term

of

six

(6)

years

without

reappointment and who shall serve as such until the

successor shall have been appointed and qualified. If the

Insurance Commissioner is removed before the expiration

of his term of office, the reason for the removal must be

published.

The Insurance Commissioner shall have the duty to

see

that

all

laws

relating

to

insurance,

insurance

companies and other insurance matters, mutual benefit

associations, and trusts for charitable uses are faithfully

executed and to perform the duties imposed upon him

by this Code, and shall, notwithstanding any existing laws

to the contrary, have sole and exclusive authority to

regulate the issuance and sale of variable contracts as

defined in Section 238 hereof and to provide for the

licensing of persons selling such contracts, and to issue

such reasonable rules and regulations governing the

same.

The

Commissioner

may

issue

such

rulings,

instructions, circulars, orders and decisions as may be

deemed necessary to secure the enforcement of the

provisions of this Code, to ensure the efficient regulation

of the insurance industry in accordance with global best

practices and to protect the insuring public. Except as

otherwise

specified,

decisions

made

by

the

Commissioner shall be appealable to the Secretary of

Finance.

In addition to the foregoing, the Commissioner shall

have the following powers and functions:

(a)

Formulate

policies

and

recommendations on

issues

concerning

the

insurance

industry,

advise

Congress and other government agencies on all aspects

of the insurance industry and propose legislation and

amendments thereto;

(b) Approve, reject, suspend or revoke licenses or

certificates of registration provided for by this Code;

(c) Impose sanctions for the violation of laws and the

rules, regulations and orders issued pursuant thereto;

(d)

Prepare,

approve,

amend

or

repeal

rules,

regulations and orders, and issue opinions and provide

guidance on and supervise compliance with such rules,

regulations and orders;

(e) Enlist the aid and support of, and/or deputize any

and all enforcement agencies of the government in the

implementation of its powers and functions under this

Code;

(f) Issue cease and desist orders to prevent fraud or

injury to the insuring public;

(g) Punish for contempt of the Commissioner, both

direct and indirect, in accordance with the pertinent

provisions of and penalties prescribed by the Rules of

Court ;

(h) Compel the officers of any registered insurance

corporation

or

association

to

call

meetings

of

stockholders or members thereof under its supervision;

(i)

Issue

subpoena

duces

tecum

and

summon

witnesses to appear in any proceeding of the Commission

and, in appropriate cases, order the examination, search

and seizure of all documents, papers, files and records,

tax returns, and books of accounts of any entity or person

under investigation as may be necessary for the proper

disposition of the cases before it, subject to the provisions

of existing laws;

(j) Suspend or revoke, after proper notice and hearing,

the license or certificate of authority of any entity or

person under its regulation, upon any of the grounds

provided by law;

(k) Conduct an examination to determine compliance

with laws and regulations if the circumstances so warrant

as determined by appropriate rules and regulations;

(l) Investigate not oftener than once a year from the

last

date

of

examination

to

determine

whether

an

institution is conducting its business on a safe and sound

basis: Provided, That, the deficiencies/irregularities found

by

or

discovered

by an audit shall be immediately

addressed;

(m) Inquire into the solvency and liquidity of the

institutions under its supervision and enforce prompt

corrective action;

(n) To retain and utilize, in addition to its annual

budget, all fees, charges and other income derived from

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