Article 83p. 83

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

the

regulation

of

insurance

companies

and

other

supervised persons or entities;

(o) To fix and assess fees, charges and penalties as the

Commissioner may find reasonable in the exercise of

regulation; and

(p) Exercise such other powers as may be provided by

law as well as those which may be implied from, or which

are necessary or incidental to the express powers granted

the Commission to achieve the objectives and purposes

of this Code.

The Commission shall indemnify the Commissioner,

Deputy

Commissioner,

and

other

officials

of

the

Commission, including personnel performing supervision

and examination functions, for all costs and expenses

reasonably incurred by such persons in connection with

any civil or criminal actions, suits or proceedings to which

they may be made a party to by the reason of the

performance of their duties and functions, unless they are

finally adjudged in such actions, suits or proceedings to

be liable for negligence or misconduct.

In

the

event

of

settlement

or

compromise,

indemnification shall be provided only in connection with

such matters covered by the settlement as to which the

Commission is advised by external counsel that the

persons

to

be

indemnified

did

not

commit

any

negligence or misconduct.

The costs and expenses incurred in defending the

aforementioned action, suit or proceeding may be paid

by the Commission in advance of the final disposition of

such

action, suit or proceeding upon receipt of an

undertaking by or on behalf of the Commissioner, Deputy

Commissioner, officer or employee to repay the amount

advanced should it ultimately be determined by the

Commission

that

the

person

is

not

entitled

to

be

indemnified.

SECTION

438.

In

addition

to

the

administrative

sanctions provided elsewhere in this Code, the Insurance

Commissioner is hereby authorized, at his discretion, to

impose upon insurance companies, their directors and/or

officers and/or agents, for any willful failure or refusal to

comply with, or violation of any provision of this Code, or

any

order,

instruction,

regulation,

or

ruling

of

the

Insurance

Commissioner,

or

any

commission

or

irregularities, and/or conducting business in an unsafe or

unsound manner as may be determined by the Insurance

Commissioner, the following:

(a)

Fines

not

less

than

Five

thousand

pesos

(P5,000.00) and not more than Two hundred thousand

pesos (P200,000.00); and

(b) Suspension, or after due hearing, removal of

directors and/or officers and/or agents.

SECTION

439.

The

Commissioner

shall have the

power to adjudicate claims and complaints involving any

loss, damage or liability for which an insurer may be

answerable under any kind of policy or contract of

insurance, or for which such insurer may be liable under a

contract of suretyship, or for which a reinsurer may be

sued under any contract of reinsurance it may have

entered into; or for which a mutual benefit association

may be held liable under the membership certificates it

has issued to its members, where the amount of any such

loss, damage or liability, excluding interest, cost and

attorney's fees, being claimed or sued upon any kind of

insurance, bond, reinsurance contract, or membership

certificate does not exceed in any single claim Five

million pesos (P5,000,000.00).

The power of the Commissioner does not cover the

relationship between the insurance company and its

agents/brokers but is limited to adjudicating claims and

complaints filed by the insured against the insurance

company.

The Commissioner may authorize any officer or group

of officers under him to conduct investigation, inquiry

and/or hearing and decide claims and he may issue rules

governing the conduct of adjudication and resolution of

cases.

The

Rules

of

Court

shall

have

suppletory

application.

The party filing an action pursuant to the provisions

of

this

section

thereby

submits

his

person

to

the

jurisdiction of the Commissioner. The Commissioner shall

acquire jurisdiction over the person of the impleaded

party or parties in accordance with and pursuant to the

provisions of the Rules of Court .

The

authority

to

adjudicate

granted

to

the

Commissioner under this section shall be concurrent with

that of the civil courts, but the filing of a complaint with

the Commissioner shall preclude the civil courts from

taking cognizance of a suit involving the same subject

matter.

Any

decision,

order

or

ruling

rendered

by

the

Commissioner after a hearing shall have the force and

effect of a judgment. Any party may appeal from a final

order, ruling or decision of the Commissioner by filing

with the Commissioner within thirty (30) days from

receipt of copy of such order, ruling or decision a notice of

appeal to the Court of Appeals in the manner provided for

in the Rules of Court for appeals from the Regional Trial

Court to the Court of Appeals.

For the purpose of any proceeding under this section,

the Commissioner, or any officer thereof designated by

him is empowered to administer oaths and affirmation,

subpoena

witnesses,

compel

their

attendance,

take

evidence,

and require the production of any books,

papers, documents, or contracts or other records which

are relevant or material to the inquiry.

A full and complete record shall be kept of all

proceedings had before the Commissioner, or the officers

thereof designated by him, and all testimony shall be

taken

down

and

transcribed

by

a

stenographer

appointed by the Commissioner.

In order to promote party autonomy in the resolution

of cases, the Commissioner shall establish a system for

resolving cases through the use of alternative dispute

resolution.

TITLE 2 Fees and Other Sources of Funds

SECTION 440. (a) For the issuance or renewal of

certificates

of

authority,

licenses

and

certificates

of

registration, pursuant to pertinent provisions of this Code,

the Commissioner shall collect and receive fees which

shall be not less than the following:

For

each

certificate

of

authority

issued

to

an

insurance company doing business in the Philippines,

Two hundred pesos (P200.00).

For each special certificate of authority issued to a

servicing

insurance

company,

One

hundred

pesos

(P100.00).

For each license issued to a general agent of an

insurance company, Fifty pesos (P50.00).

For

each

license

issued

to

an

insurance agent,

Twenty-five pesos (P25.00).

For each license issued to an agent of variable

contract policy, Twenty-five pesos (P25.00).

For each license issued to an insurance broker, One

hundred pesos (P100.00).

For each license issued to a reinsurance broker, One

hundred pesos (P100.00).

For each license issued to an insurance adjuster, One

hundred pesos (P100.00).

For

each

certificate

of registration issued to an

actuary, Fifty pesos (P50.00).

For each certificate of registration issued to a resident

agent, Fifty pesos (P50.00).

For each license issued to a rating organization, One

hundred pesos (P100.00).

© Compiled by RGL

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