Authority of the Insurance Commissioner to Appoint a Conservator or Receiver of Insurance Companies

Blnero SenrnaL No pturptNAg OFFICE OF THE DEPUTY GOVERNOR SUPERVISION AND EXAMINATION SECTOR cfRcurAR LETTER NO. Ct-2016-028 To : A[[ BANKS Subject : Authority of the Insurance Commissioner to Appoint a Conservator or Receiver of Insurance Companies This is to advise all Banks of the authority of the Insurance Commissioner to appoint a conservator or receiver to take charge of, among others, the assets and liabilities of the insurance companies, pursuant to Sections 255 and 256 of the Insurance Code, which read as follows: "section 2s5. rf at any time before, or ofter, the suspension or revocation of the certificote of authority of an insurance compony as provided in the preceding title, the commissioner finds that such compony is in a state of continuing inabitity or unwillingness to maintain a condition of solvency or liquidity deemed odequote to protect the interest of policyholders and creditors, he moy oppoint a conseruator to toke charge of the ossets, liahilities, and the mdndgement of such compony, collea all moneys and dehts due to said company and exercise all powers necessary to preserue the ossets of soid compony, reorganize the management thereof, and restore its viobility. The said conservotor shall have the power to overrule or revoke the actions of the previous manogement ond board of directors of the soid compony, ony provision of low, or of the articles of incorporotion or bylaws of the compony, to the contrary notwithstanding, and such other powers as the commissioner shall deem necessory. "seition 2so. whenever, or upon examination or other evidence, it sholl be disclosed that the condition of any insuronce compony doing business in the philippines is one of insolvency, or thot its continuonce in business would be hazardous to its poticyhotders and creditors, the commissioner sholl forthwith order the company to ceqse and desist from tronsocting business in the phitippines and shoil designate a receiver to immediately take charge of its assets ond liabilities, os expeditiousry os possible collect ond gather ail the ossets ond odminister the some for the benefit of its poticyholders ond creditors, and exercise alt the powers necessary for these A. Mabini st., Malate 1004 Manila, philippines . (632170877t)1 . . [email protected] wrvw.bsp.gov.ph

purposes including, but not limited to, bringing suits ond loreclosing mortgoges in the nome ol the insurance compdny. XXX (Emphasis and underscoring supplied) For information and guidance. ! I ll-!- <J^ r/ tFPENtLw$. u{EsroR A. Deputy bovernor- 2? March ZOLG Page 2 ol 2