Guidelines for the Liquidation of Inactive Mutual Benefit Associations (MBAs) and Disposition of Guaranty Fund (GF)

August 19, 2016 INSURANCE CIRCULAR LETTER NO. 047-16 TO : All Mutual Benefit Associations Concerned SUBJECT : Guidelines for the Liquidation of Inactive Mutual Benefit Associations (MBAs) and Disposition of Guaranty Fund (GF) Pursuant to the powers of the Insurance Commissioner under Section 421 in relation to Section 437 (d) and (p) of Republic Act (R.A.) No. 10607, all concerned Mutual Benefit Associations ("MBA" for brevity) should be guided by the following: I. Scope of Application This Circular Letter shall apply only to the following inactive MBAs with GFs under the account names " Insurance Commission for the Account of (name of MBA) " and have not updated their files with the Insurance Commission. Date of Issuance of Name of MBAs Last License 1. Association of Government Civil Engineers of the Philippines 2002 2. Barangay Mutual Benefit Fund, Inc. 2004 3. Benefit Association of Self-Employed 1991 4. Caballeros de Rizal Agricultural Endeavor 1994 5. Camarines Sur Teachers & Employees Association, Inc. 2005 6. District City Engineers League of the Philippines 2000 7. Ilocos Sur Teachers Association MBAI 2000 8. Mentors Guild, Inc. 2004 9. Mondragon MBAI 1986 10. Nelfei MBAI 2004 11. Pakisama MBAI 2006 12. Provenor MBAI 2000 13. Quezon City Police Department Security Association 1979 14. Transportation & Communication MBAI 2004 15. United MBAI 1985 16. Vicmico Employees Mutual Aid Association, Inc. 2003 17. Zamboanga Del Sur Mutual Benefit Association, Inc. 1995 II. Rules of Presumption 1. The Insurance Commission shall send a letter to the last known address on record of the MBA concerned requiring the latter to notify the Insurance Commission within fifteen (15) days from its receipt if said entity still intends to continue its operation as an MBA. In case the concerned MBA fails to reply, the following rules of presumption shall be applied: a. If the MBA concerned does not reply within fifteen (15) days from the receipt of said letter, said MBA shall be deemed not interested to continue its operations; b. If said letter is returned to the Insurance Commission showing that the letter was not served due to the fact that said entity is no longer located in said address and there is no other means of determining the current address of the MBA concerned, a Notice shall be published in a newspaper of general circulation once a week for two (2) consecutive weeks directing the MBA concerned to submit a letter within thirty (30) days and inform the Insurance Commissioner if the concerned MBA intends to continue its operations. After the lapse of thirty (30) days from the last date of publication and there is still no reply from the concerned MBA, the same is deemed not interested to continue its operations; 2. In case the MBA concerned replies in writing and informs the Insurance Commission that it intends to continue its operations as an MBA, the same shall be endorsed to the Licensing Division for the licensing process to commence. Said MBA shall be given two (2) months to complete their licensing requirements, otherwise the MBA is deemed not interested to continue its operations. 3. All MBAs deemed not interested to continue their operations as determined in items 1a & b and 2 above, shall be endorsed to the CRL for appropriate handling including the disposition of GF. 4. Subsequent guidelines may be issued to supplement, amend, modify or clarify the foregoing matters. This Circular shall take effect immediately. (SGD.) EMMANUEL F. DOOC Insurance Commissioner