De Guzman, Angelica R.

BSA Assignment #6

Question:

What are your learnings in today’s lesson?

Answer:

I learn about the Insurance Company or Organization wherein it is a mechanism for

distributing equitability losses among a large number of persons who are subject to particular
risk. Risk is important factor in Insurance business. So there are Nature of any Insurance
Company like they are exempted from provision of this act but such information, data or reports
shall be present to Bangko Sentral as the monetary board may require it in order to ascertain the
effects of the board operations of insurance companies.

In Governing Law, according to code of 1978 or also known as Presidential Decree No.
1460 is a decree to consolidate and codify all the insurance laws of the Philippines. It is being
referred to as the special law. And Act No. 2427 or known as the Insurance Act was copied from
civil code of California. This law is creating the Government Service Insurance System (GSIS),
Social Security System (SSS), and the Philippine Crop Insurance Corporation (PCIC)
Presidential Decree No. 1146, Republic Act No. 1161 as amended and Presidential Decree No.
1467 may be added to the other special laws.

There are Entities engaged in Insurance Business and It is classified into two sectors the
Public and the Private Sectors. So Public Sectors is refers to any government insurance
corporation like GSIS, SSS, and PCIC. While the private Sectors are refers to private insurance
companies like the domestic and foreign or entities which are subject to the provisions of the
insurance code of 1978. As mandated by the insurance code of 1978, entities engaged in
insurance business are required to submit their annual statements on their financial condition on
or before April 30 immediately following the end of such fiscal year. For the period ending the
fiscal year of 1981, both private and public sectors register in combined aggregated assets in the
amount of 34.062 billion as a game to the reported figure of 28.5025 for fiscal year 1980. So for
the amount of 34.062 billion there should be a 22.7 billion contributions the Government and
total share of 11.3 billion for the private insurance companies.

So according to the Insurance Companies Profile 1982 there are 21 domestic life
companies, 2 foreign life companies, 95 domestic non-life companies, 14 foreign on-life, 4
domestic professional reinsurers, and 1 foreign professional reinsurer.

Secretary of Finance has approved an increased in the capitalization of insurance

companies doing business in the Philippines from a paid up capital of P75 million to P10 million
to take effect immediately in gradual manner. And as provided in section No. 281, no domestic
insurance company shall in Stock Corporation engaged in business in the Philippines. Before
domestic insurance company can do business or engaged in business of insurance they must first
obtain certificate of authority from the insurance commissioner.
De Guzman, Angelica R.

According to Act No. 2427 the Insurance Act wherein Insurance is a contract whereby
one undertakes for a consideration to indemnify another against loss, damage, or liability arising
from an unknown or contingent event. Insurance division was integrated into the bureau of
banking. And Insurance commission is being tasked to Implement, execute and require
compliance of insurance companies doing business in the Philippines of the new provisions of
the Insurance Code of 1978.