Expeditious Approval of Life Insurance Products

October 5, 2011 INSURANCE CIRCULAR LETTER NO. 032-11 TO : All Life Insurance Companies Doing Business in the Philippines SUBJECT : Expeditious Approval of Life Insurance Products Pursuant to the provisions of Section 414 of the Insurance Code of 1978, the following amendments to Circular Letter (CL) No. 27-2005 on Expeditious Approval of Traditional Life Insurance Products are hereby promulgated: I. On item no. 3, any product that is exactly the same as the life insurance product previously approved by the Insurance Commission for a life insurance company belonging to the same holding company group may be submitted for expeditious approval within twelve (12) months from the date of regular approval of the original product. Within such 12-month period and before such product is submitted for approval, the Insurance Commission may impose additional requirements through a formal notice to the Philippine Life Insurance Association. However, for variable life insurance products, the investment fund shall be subject to the approval by the Insurance Commission. The submission must be accompanied by the following: a) A copy of the letter of approval by the Insurance Commission of the original life insurance product b) A complete set of the product submission documents of the original life insurance product c) A Deed of Undertaking to be executed by the President or Chief Operating Officer of the company. Such Deed of Undertaking shall state, among other things, the following: cTECIA i) That the insurance product submitted for approval is exactly the same as that previously approved by the Insurance Commission within the last twelve (12) months; ii) That the insurance product strictly complies with the substantive requirements of the Insurance Code and other pertinent circulars and guidelines duly issued by the Insurance Commission; and iii) That the company shall be responsible for any willful misrepresentation and/or any willful violation committed by any of its officers and/or authorized representatives in connection with the application for approval of the life insurance product. II. On item no. 4, the Insurance Commission may conduct a post-audit within five (5) years from the date of product approval. After such 5-year period, the Deed of Undertaking as specified in item no. 2 of the said circular, shall lapse and the Insurance Commission can no longer recall the approval of the life insurance product for violation of the Insurance Code and circulars and guidelines issued by the Insurance Commission as specified in item no. 5 of the same circular. However, the Commission may order the insurance company to refrain from further selling the product even after the 5-year period if there is a finding of violation of the Insurance Code, circulars and guidelines issued by the Commission. III. On item no. 6, the Insurance Commission shall release the approval letter within seven (7) working days from the submission by the life insurance company of all documents required. Further, except as provided in I above, CL No. 27-2005 and this Circular shall not apply to variable contracts as defined in Title 10 of the Insurance Code. All rules, regulations, and issuances inconsistent with this Circular are hereby deemed amended, modified or repealed. This Circular shall take effect immediately. (SGD.) EMMANUEL F. DOOC Insurance Commissioner