Deposit Requirement for Health Maintenance Organizations (HMOs)

September 1, 2016 Supersedes: None INSURANCE CIRCULAR LETTER NO. 048-16 TO : All Health Maintenance Organizations (HMOs) Doing Business in the Philippines SUBJECT : Deposit Requirement for Health Maintenance Organizations (HMOs) In relation to the Deposit Requirement under Section 1.2 (a) and (e) of Circular Letter No. 2016-41, the Insurance Commission hereby issues the attached template of an Undertaking. Only deposits and/or investments in a universal or commercial bank duly authorized by the Bangko Sentral ng Pilipinas are acceptable subject to the following conditions: 1. Deposit/Investment account shall maintain an amount of at least twenty percent (20%) of the Paid-Up Capital in cash, treasury bills, and treasury bonds or in any combination thereof; 2. All deposits/investments shall be in the name of the company; and 3. If under a Trust or Investment Management Account (IMA), the company shall be required to submit to the Commission quarterly reports/statements on the trust or investment management account. Said Deposit Requirement is intended to protect the interest of the HMOs' enrolled member-subscribers including corporate client-subscribers. This Circular Letter takes effect immediately. (SGD.) EMMANUEL F. DOOC Insurance Commissioner ATTACHMENT BANK LETTERHEAD Undertaking Date: ________________________ INSURANCE COMMISSION 1071 United Nations Avenue, Ermita, Manila HMO : ________________________________________ Investment Description : __________________________ Amount : ______________________________________ Insurance Commissioner: Regarding the above ____________________________________, (deposit/ investment instrument) held pursuant to Section 1.2, Deposit Requirement, of Circular Letter No. 2016-41 for _______________________________________ (Name of HMO) And _______________________________________ (Name of Bank) , we hereby certify to the following: 1. that no prior liens or assignments have been effected on the records of the bank; 2. that ____________________________ (Name of HMO) pledged the reference ___________________________ (deposit/investment instrument) to the Insurance Commission and _____________________________ (Name of Bank) has recorded on its books that the securities are pledged to and held for the benefit and protection of enrolled members of _________________________________ (Name of HMO) ; and 3. that the Bank will not withdraw any part thereof or otherwise transfer the funds until authorized by the Insurance Commission. ______________________________ ______________________________ Name of HMO Name of the Bank Authorized Signatory: ___________________ Authorized Signatory: ___________________ Title: ________________________________ Title: ________________________________ Date: ________________________________ Date: ________________________________ Contact Details: _______________________ Contact Details: _______________________ (Note: This Undertaking must be duly notarized.)