IC DEPARTMENT ORDER NO. 115-93, December 02, 1993

[ IC DEPARTMENT ORDER NO. 115-93, December 02, 1993 ]

AMENDMENT TO DEPARTMENT ORDER NO. 27-90, JULY 1, 1990, REGARDING MINIMUM PAID-UP CAPITAL STOCK REQUIREMENT TO REHABILITATE AN INSURANCE COMPANY, LIFE OR NON-LIFE, OR A PROFESSIONAL REINSURER

Amendment to Department Order No. 27-90, July 1, 1990, Regarding Minimum Paid-Up Capital Stock Requirement to Rehabilitate an Insurance Company, Life or Non-Life, or a Professional Reinsurer

Pursuant to the authority vested in me by the provision of Section 188, in relation to Section 203, and Section 280, in relation to Section 281 of the Insurance Code, and upon recommendation of the Insurance Commissioner, guidelines 1 and 2 of Department Order No. 27-90, July 1, 1990, on the subject are hereby amended to read as follows:

1) No insurance company, either life or non-life, may be rehabilitated and authorized to transact insurance business anew unless possessed of a minimum paid-up capital stock equal of at least FIFTY MILLION PESOS (P50,000.000.00) and a contributed surplus fund of at least TWO MILLION (P2,000,000.00), in case of a life company, or at least ONE MILLION PESOS (P1,000,000.00), in case of a non-life insurance company, free from any lien or encumbrance.

Twenty-five per centum (25%) of said paid-up capital stock shall be invested and deposited in accordance with the provision of Section 203 of the Insurance Code.

2) No professional reinsurer as defined under Section 280 of the Insurance Code, may be rehabilitated and authorized to transact reinsurance business anew unless possessed of a minimum paid-up capital stock equal to ONE HUNDRED MILLION PESOS (P100,000,000.00), free from any lien or encumbrance.

Twenty-five per centum (25%) of said paid-up capital stock shall be invested and deposited in accordance with the provisions of Section 281 of the Insurance Code.

This Order shall take effect on January 1, 1994.

Adopted: 2 Dec. 1993

(Sgd.) ERNEST C. LEUNG Acting Secretary

Recommending Approval:

(SGD.) ADELITA A. VERGEL DE DIOS Insurance Commissioner