The INSURANCE COMMISSIONER

Law 139 Insurance Law

GILBERT R. HUFANA
Professor
 Powers of the Insurance
Commissioner
• Sec. 437-438, ICP – Administrative Powers
• Sec 439, ICP – Adjudicative Power
• These sections enumerate the powers and duties of
the Insurance Commissioner.
• He is vested with regulatory as well as with
adjudicatory authority.
 Administrative Powers
• To see that all laws relating to insurance, insurance
companies and other insurance matters are faithfully
executed
• Have sole and exclusive authority to regulate the sale
of variable contracts, provide licensing of persons
selling such contracts & to issue reasonable rules and
regulations governing the same.
 Administrative Powers
• Issue rulings, instructions, circulars, orders and
decisions as he may deem necessary to secure the
enforcement of the Insurance Code subject to the
approval of the Secretary of Finance.
• Impose upon insurance companies, their directors,
officers and agents for any willful failure or refusal to
comply with or violation of any provision of the
Insurance Code, ruling, instruction, circular, order of the
Insurance Commissioner or any commission of
irregularities or conducting business in an unsafe or
unsound manner
 Adjudicative Powers
• Adjudicate claims and complaints involving any loss,
damage or liability for which an insurer may be
answerable under any kind of policy or contract of
insurance, contract of suretyship, contract of
reinsurance or for which a mutual benefit association
may be held liable under membership certificates it
issued to its members.
 Jurisdiction of the IC
• The IC has concurrent jurisdiction with the regular
courts with the regular courts to hear and decide
claims for which an insurer may be answerable under
any kind of policy or contract of insurance where the
amount of loss, damage or liability does not exceed
any single claim of FIVE (5) Million pesos (Php
5,000,000.00).
• The jurisdictional amount excludes interests, costs and
attorney’s fees being claimed
 Appeal from decision
of the IC
• Under circular 1-91 issued by the Supreme Court on
Feb. 27, 1991, the appeal of a party affected by a
final order, decision or judgement of the IC shall be
taken to the Court of Appeals within 15 days from
notice
 Appeal from decision
of the IC
• The IC’s resolution and order which were issued in
the performance of administrative and regulatory
duties and functions should have to be appealed to
the Office of the Secretary of Finance.
– Almedras Mining Corporation v. Office of the Insurance
Commission 160 SCRA 656
– Phil. American Life Insurance Company v. Ansaldo 234
SCRA 509
END OF LECTURE