Guidelines on the Use of Business Names

April 22, 2019

INSURANCE CIRCULAR LETTER NO. 2019-18

Supersedes: None

 

WHEREAS, there are entities regulated by the Insurance Commission which are engaged in two or more industries such as: the Insurance, Pre-Need or HMO;

WHEREAS, the entities which are engaged in two or more industries regulated by the Insurance Commission use a common or dominant business name and/or business logo in the papers or documents they issue to the general public;

WHEREAS, in using a common or dominant business name and/or business logo, there is a significant risk that confusion might arise concerning said entities' clients, policyholders, members or stakeholders, as the case may be, since such clients, policyholders or members or stakeholders cannot be presumed to know if the product they are dealing with or presented to them is an insurance, pre-need or HMO product;

WHEREAS, there is a need for this Commission to address such significant risk to avoid confusion it can cause to the general public and/or the companies' stakeholders;

NOW, THEREFORE, pursuant to the powers granted to the Insurance Commissioner under Section 437 of the Insurance Code, as amended by Republic Act ("R.A.") No. 10607, the guidelines on the use of business name is hereby promulgated:

SECTION 1. Business Name as Used in Advertising, Marketing or Promotional Purposes. —

No entity, engaged in two or more industries regulated by the Insurance Commission, may use a common or dominant business name and/or business logo unless it is only for purposes of advertising, marketing or promotion of their products, provided, that such advertising, marketing or promotions does not form part of an official or formal correspondence with any regulatory body or their client, policyholder or member.

SECTION 2. Business Name as Used in Contracts. —

No entity, engaged in two or more industries regulated by the Insurance Commission, shall use a common or dominant business name and/or business logo in the issuance of any contract with any of their clients, policyholders, members or stakeholders. CAIHTE

It is the duty of such entity engaged in two or more industries regulated by the Insurance Commission, to ensure that all contracts individually entered into with any of its clients, policyholders, members or stakeholders which indicate therein their business name/logo, shall likewise indicate therewith the specific line of business in which they are engaged, be it insurance, pre-need or HMO, as the case may be.

SECTION 3. Penalties. —

Any entity, who, after due examination, shall be found to be in violation of any of the preceding sections shall be penalized with the amount not exceeding Two Thousand Pesos (PhP2,000.00) for each violation committed under the preceding Sections.

SECTION 4. Applicability of Relevant Laws. —

The provisions under this Circular is without prejudice to application of pertinent laws, rules and regulations being implemented by other government regulatory agencies.

SECTION 5. Effectivity. —

This Circular Letter shall take effect immediately.

(SGD.) DENNIS B. FUNAInsurance Commissioner