Issuance/Renewal of Business Permits to Insurance Companies
The DILG Memorandum Circular No. 029-17, dated February 10, 2017, emphasizes compliance with Republic Act No. 10607, which strengthens the insurance industry in the Philippines. It prohibits local government units from implementing any accreditation schemes that could prevent duly-licensed insurance companies from issuing policies or conducting business. Such local regulations that restrict insurance companies' operations are declared null and void. Local chief executives are reminded to adhere to these provisions when processing business permits for insurance companies, and DILG Regional Directors are tasked with disseminating this information widely.
Law Information
- Reference Number
- DILG Memorandum Circular No. 029-17
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Department of the Interior and Local Government
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
February 10, 2017
DILG MEMORANDUM CIRCULAR NO. 029-17
| FOR | : | All Provincial Governors, Vice Governors, City/Municipal Mayors, Vice Mayors, The Regional Governor of the Autonomous Region in Muslim Mindanao, DILG Regional Directors, and Others Concerned |
| SUBJECT | : | Issuance/Renewal of Business Permits to Insurance Companies |
This has reference to Republic Act No. 10607, otherwise known as "An Act Strengthening the Insurance Industry, Further Amending Presidential Decree No. 612, otherwise known as the 'Insurance Code', as amended by Presidential Decree Nos. 1141, 1280, 1455, 1460, 1814 and 1981, and Batas Pambansa Bilang 874, and for Other Purposes, that expressly disallows any kind or form of accreditation scheme or system that prevents or disenfranchises any duly-licensed insurance company from issuing policy or transacting insurance business anywhere in the Philippines. EcTCAD
Section 193 of the said law reads:
-"xxx xxx xxx"-
No insurance company issued with a valid Certificate of Authority to transact insurance business anywhere in the Philippines by the Insurance Commissioner, shall be barred, prevented, or disenfranchised from issuing any insurance policy or from transacting any insurance business within the scope or coverage of its Certificate of Authority anywhere in the Philippines, by any local government unit or authority, for whatever guise or reason whatsoever, including under any kind of ordinance, accreditation system, or scheme. Any local ordinance or local government unit regulatory issuance imposing such restriction or disenfranchisement on any insurance company shall be deemed null and void ab initio.
In this regard, all local chief executives are reminded of the above provisions when issuing business permits to insurance companies.
All DILG Regional Directors are hereby directed to cause the immediate and widest dissemination of this Memorandum Circular to local authorities within their areas of jurisdictions.
For strict compliance.
(SGD.) ISMAEL D. SUENO
Secretary
Cite This Law
Issuance/Renewal of Business Permits to Insurance Companies, DILG Memorandum Circular No. 029-17, Feb 10, 2017 (Philippines)
Issuance/Renewal of Business Permits to Insurance Companies, DILG Memorandum Circular No. 029-17 (Phil. 2017)
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