2. Applicable Laws
๏ฎโฏ Section 54, RA 8791 (Gen. Banking Law)
๏จโฏโAbank shall not directly engage in insurance
business as the insurer.โ
๏ฎโฏ Section 301, The Insurance Code
๏จโฏโAny 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 xxxโ
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3. Applicable Laws, contโd.
๏ฎโฏ Section 299, The Insurance Code
๏จโฏโNo 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, xxxโ
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4. Regulatory Framework on MI:
3 Options
๏ฎโฏ Partner with licensed MI providers
๏ฎโฏ Buy a MI product through licensed agent
or broker
๏ฎโฏ Join an existing MBA or Cooperative
Insurance Society (CIS)
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5. Cir. No. 683: Microinsurance (MI)
๏ฎโฏ Refers only to the first option: partnership
with licensed MI providers
๏ฎโฏ Covers the regulations on presentation,
marketing and selling of MI
๏ฎโฏ Applies only to rural, cooperative and thrift
banks
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6. BSP Requirements
๏ฎโฏ Copy of the BOD approval
๏ฎโฏ Copy of written agreement between bank
and MI provider
๏ฎโฏ Copy of IC approval for each MI product
๏ฎโฏ Copy of the Certificate of Authority of the
insurance provider
๏ฎโฏ Bankโs license as MI agent or broker
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7. BSP Requirements, contโd.
๏ฎโฏ Certification
from bank president for
continued compliance:
๏จโฏMI product is authorized for cross selling
under BSP regulations
๏จโฏMI provider and product are approved by IC
๏จโฏConducted due diligence
๏จโฏPromotional materials comply with BSP
๏จโฏBank personnel are trained and have passed
IC exams
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