Republic of the
Philippines
Department of
Finance
INSURANCE COMMISSION
'1071
United
Nations Avenue
Manila
B
Circular
Letter
(CL)
No.:
2022-03
Date:
18 January
2022
Supplements:
lnsurance
Memorandum
Circular
No.3-1993;
Circular Letter
No.
2016-04;
CIRCULAR LETTER
TO
All lnsurance
Companies,
lnsurance Agents, and
General
Agents Doing Business
in the Philippines
SUBJECT
Guidelines
in
the
Renewal of
lnsurance Agent's
License
Expiring 31
December 202'l
WHEREAS,
ltem
6.3
of lnsurance
Memorandum
Circular No, 3-93
dated 28 June
1993 entitled
''Licensing
of
lnsurance Agents and
General
Agents"
provides
for the
definition of
"actively
engaged"
for the
purpose
of renewal of an
insurance agent's
agent,
to wit:
"The
term
'actively
engaged' shall
be taken to
mean that the
license
holder shall have
earned, d u rinq
the
vear
followinq the
issuance of
the license,
commissions
or other
compensation
for services
rendered as such
insurance agent
or
general
agent amounting
to at
least three thousand
six
hundred
pesos." (Emphasis
supplied.)
WHEREAS, Section
307 of
the
lnsurance Code, as amended
by
Republic
Act No
10607
provides:
''section
307.
No insurance
company doing
business
in the
Philippines,
nor
any agent
thereof, shall
pay
any commission
or other
compensation
to any
person
for
services
in obtaining
insurance,
unless such
person
shall
have
first
procured
from the
Commissioner
a license to
act as an
insurance agent
of such company
or as an
insurance broker
as
hereinafter
provided.
No
person
shall act as
an insurance
agent or
as an insurance
broker
in the
solicitation
or
procurement
of applications
for insurance,
or receive
for
services
in obtaining
insurance,
any commission
or
other compensation
o
socoTEc
J
Head Office, PO. Box
3589 Manila
I
Trunk Line:
+(632)
8523-6461
to 70
|
Fax No:
+(63218522-1434
I
www.inaurance.gov.ph
Licenses may be renewed
in
the case
ofthe company
represented by such
agents xxx xxx
xxx."
WHEREAS, the Commission
recognizes the need to
update and revisit the term
"actively
engaged'
as defined under
ltem 6.3 of IMC No. 3-93 and
taking into
consideration that the
validity of agent's licenses
is for
a
period
of three
(3) years
following the amended of
the lnsurance Code;
WHEREAS, this Commission
recognizes the
need
to
clarify ltem 6.3 of
IMC No. 3-93
on the term
"actively
engaged"
in view of the amendments
on the
validity
period
of an
agent's
license, the economic
impact of the COVID-19
pandemic
to insurance agent's,
and the
need
to
issue clarificatory
guidelines
and
to ease the
regulatory requirements.
NOW, THEREFORE,
in view of all the
foregoing and
pursuant
to the statutory
powers
granted
to the lnsurance Commissioner
under Section
437 of the
lnsurance Code of
the
Philippines, as amended by
Republic Act. No.
10607, the following Guidelines
on
the
Renewal of lnsurance
Agent's Licenses expiring
on the 31
December 2O27
is hereby
promulgated:
l. All applications
for renewal of
insurance agent licenses
for the Licensing
Year 2022-2024
shall be submitted
through the
Enhanced Licensing
System
(ELS)
by the insurance companies
represented
by the agents.
ll. All applications shall
be accompanied by
a.
Duly Accomplished,
readable, legible, and
notarized
Application Form
signed by the authorized
representative
of the company
with a
rank
of
at
least Vice-President.
ln case of unavailability
of a
notary, a notation
must
be made on the
application form
indicating that a
notary was unavailable
at the
time of accomplishment
or submission;
b.
Documentary Stamp
Tax affixed
to the hard copy
which
must be
reflected in the soft
copy to be uploaded;
c. Signature
(handwritten/electronic
signature)
of authorized
company
representative
affixed to
the hard copy
which must be
reflected in the
soft copy
to be uploaded;
d. List of
Names, Type of
License and Commissions
Earned
of the Agents.
2
from
any
insurance company doing
business in the Philippines, or any
agent thereof, without
first
procuring
a license so to act
from the
Commissioner,
which must be
renewed every three
(3)
vears
thereafter xxx
xxx xxx xxx. The license shall expire
after the thirty-first day of
December of the
third
year
following the date
of issuance unless it is
renewed.
WHEREAS, the COVID-19
pandemic
has
impacted and
presented
newchallenges for
insurance agents
to earn a living;
An agent is considered as
"actively
engaged"
if the aggregate
amoLrnt
,,1
commission or other
compensation received by the agent
during the
3-ye;r
validity
period
(i.e.,
2019, 2020 and 202'1
)
amounts
to at least P10
800.00
For
agents
with both traditional life insurance agent's
license and
vatiah
,,
life insurance agent's license, the
requirement
shall
be deemed
corTiplii..
with if the agent has earned
or
received an aggregate amount
of at leasl
Pl0,800 in commission or other compensation
for
both
lines.
For non-life insurance agents representing
more than one
(1
1
non-ttti.
company, the requirement shall be deemed complied
with if the aqent
ha.,
earned or received an aggregated of at
least P10 800 in commissron
,
other compensation
for
all the companies
represented.
lV. lncomplete submissions shall not be considered as
submitted.
Late applications for renewal
and
completion of lacking
requirements
wtll
l''
accepted starting from 01 January until 31
March 2022
subject
ir
appropriate
penalty
of Five Hundred Pesos
(P500.00)
per
calendar day.
A
submissions
made
after 31
March 2022 shall be
considered
a
disapproved.
Those
who fail
to renew until 31 March
2022 may reapply
for
a
115sn5s
rr'hir'rr
shall be treated as new application beginning
01 January
2023
This is
to
reiterate
that
payment
of commissions to any
person
without any
licenst
from
this Commission to act as an
insurance
agent,
regardless of the amount
involver;
is a
violation
of Section 307 of the
lnsurance
Code, as amended
by Republic
Act
No
10607.
This
Circular Letter shall take effect
immedia
DENNIS
B. FUNA
lnsurance Commissioner
p7T$
1;Jt 4
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