2. Applicable Laws
Section 54, RA 8791 (Gen. Banking Law)
“Abank shall not directly engage in insurance
business as the insurer.”
Section 301, The Insurance Code
“Any person who for any compensation,
commission xxx acts or aids in xxx soliciting,
negotiating xxx any insurance contract, xxx on
behalf of an insured other than himself, shall
be an insurance broker xxx”
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3. Applicable Laws, cont’d.
Section 299, The Insurance Code
“No person shall act as xxx broker in the
solicitation xxx for insurance, or receive for
services of obtaining insurance, any
commission xxx from any insurance company
xxx, without first procuring a license so to act
from the Commissioner, xxx”
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4. Regulatory Framework on MI:
3 Options
Partner with licensed MI providers
Buy a MI product through licensed agent
or broker
Join an existing MBA or Cooperative
Insurance Society (CIS)
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5. Cir. No. 683: Microinsurance (MI)
Refers only to the first option: partnership
with licensed MI providers
Covers the regulations on presentation,
marketing and selling of MI
Applies only to rural, cooperative and thrift
banks
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6. BSP Requirements
Copy of the BOD approval
Copy of written agreement between bank
and MI provider
Copy of IC approval for each MI product
Copy of the Certificate of Authority of the
insurance provider
Bank’s license as MI agent or broker
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7. BSP Requirements, cont’d.
Certification
from bank president for
continued compliance:
MI product is authorized for cross selling
under BSP regulations
MI provider and product are approved by IC
Conducted due diligence
Promotional materials comply with BSP
Bank personnel are trained and have passed
IC exams
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