NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
The insurance industry is one which greatly affects national interests and our 
economy.  Under Republic Act 10607 or the new Insurance Code, the Insurance 
Commissioner is given a wide array of powers and duties which basically means that he is 
the one regulating the entire insurance industry.  
The law provides that, “The Insurance Commissioner shall have the duty to see that 
all laws relating to insurance, insurance companies and other insurance matters, mutual 
benefit associations, and trusts for charitable uses are faithfully executed and to perform the 
duties imposed upon him by this Code, and shall, notwithstanding any existing laws to the 
contrary, have sole and exclusive authority to regulate the issuance and sale of variable 
contracts as defined in Section 238 hereof and to provide for the licensing of persons selling 
such contracts, and to issue such reasonable rules and regulations governing the same.” 
There is a need to create a collegial body to regulate the insurance industry as it will 
bring stability in the Commission as its actions in setting policies and guidelines, as well as 
the exercise of its administrative and adjudicatory powers, would now require a majority vote 
of its members. 
In view of the foregoing, the approval of this bill is earnestly requested. 
RUFUS B. RODRIGUEZ
December 6, 2022
8:00 am
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NINETEENTH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
REORGANIZING AND CONVERTING THE INSURANCE COMMISSION INTO A 
COLLEGIAL BODY, AMENDING SECTIONS 437, 438, AND 439 OF REPUBLIC ACT NO. 
10607, OTHERWISE KNOWN AS “THE INSURANCE CODE”, AS AMENDED. 
Be it enacted by the Senate and House of Representatives of the Philippines in  
Congress assembled: 
SEC. 1. Section 437 of Republic Act No. 10607 is hereby amended to read as follows: 
 
“SECTION 437. THIS CODE SHALL BE ADMINISTERED BY THE INSURANCE 
COMMISSION (HEREINAFTER REFERRED TO AS THE "COMMISSION") AS A 
COLLEGIAL BODY, COMPOSED OF A CHAIRPERSON AND (4) COMMISSIONERS, 
APPOINTED BY THE PRESIDENT FOR A TERM OF (6) SIX YEARS EACH AND WHO 
SHALL SERVES AS SUCH UNTIL THEIR SUCCESSOR SHALL HAVE BEEN APPOINTED 
AND QUALIFIED. A COMMISSIONER APPOINTED TO FILL A VACANCY OCCURRING 
PRIOR TO THE EXPIRATION OF THE TERM FOR WHICH HIS/HER PREDECESSOR WAS 
APPOINTED, SHALL SERVE ONLY FOR THE UNEXPIRED PORTION OF THEIR TERMS. 
UNLESS THE CONTEXT INDICATES OTHERWISE, THE TERM "COMMISSIONER" 
INCLUDES THE CHAIRPERSON. ALL PREVIOUS REFERENCES TO THE “INSURANCE 
COMMISSIONER” IN THE CODE SHALL HEREBY REFER TO THE “COMMISSION”. 
THE COMMISSIONERS MUST BE NATURAL-BORN CITIZENS OF THE 
PHILIPPINES, AT LEAST FORTY (40) YEARS OF AGE FOR THE CHAIRPERSON AND 
AT LEAST THIRTY-FIVE (35) YEARS OF AGE FOR THE COMMISSIONERS, OF GOOD 
MORAL CHARACTER, OR UNQUESTIONABLE INTEGRITY, OF KNOWN PROBITY AND 
PATRIOTISM, AND WITH RECOGNIZED COMPETENCE IN THE INSURANCE INDUSTRY. 
IF A COMMISSIONER IS REMOVED BEFORE THE EXPIRATION OF HIS/HER TERM OF 
OFFICE, THE REASON FOR THE REMOVAL MUST BE PUBLISHED. 
THE CHAIRPERSON IS CHIEF EXECUTIVE OFFICER OF THE COMMISSION. 
THE CHAIRPERSON SHALL EXECUTE AND ADMINISTER THE POLICIES, DECISIONS, 
ORDERS AND RESOLUTIONS APPROVED BY THE COMMISSION AND SHALL HAVE 
THE GENERAL EXECUTIVE DIRECTION AND SUPERVISION OF THE WORK AND 
OPERATION OF THE COMMISSION AND ITS MEMBERS, BODIES, BOARDS, OFFICES, 
PERSONNEL AND ALL ITS ADMINISTRATIVE BUSINESS. 
THE SALARY OF THE CHAIRPERSON AND THE COMMISSIONERS SHALL 
BE FIXED BY THE PRESIDENT OF THE PHILIPPINES BASED ON THE OBJECTIVE 
CLASSIFICATION SYSTEM AT A SUM COMMENSURATE IMPORTANCE AND 
RESPONSIBILITIES ATTACHED TO THE POSITION. 
THE COMMISSION SHALL HOLD MEETINGS AT LEAST ONCE A WEEK FOR 
THE CONDUCT OF BUSINESS OR AS OFTEN AS MAY BE NECESSARY UPON THE 
CALL OF THE CHAIRPERSON OR UPON THE REQUEST OF (3) COMMISSIONERS. THE 
NOTICE OF THE MEETING SHALL BE GIVEN TO ALL COMMISSIONERS AND THE 
PRESENCE OF THREE (3) COMMISSIONERS SHALL CONSTITUTE A QUORUM. IN THE 
ABSENCE OF THE CHAIRPERSON, THE MOST SENIOR COMMISSIONER SHALL ACT 
AS PRESIDING OFFICER OF THE MEETING. 
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THE COMMISSION MAY, FOR PURPOSES OF EFFICIENCY, DELEGATE ANY 
OF ITS FUNCTIONS TO ANY DEPARTMENT OF OFFICE OF THE COMMISSION, AN 
INDIVIDUAL COMMISSIONER OR STAFF MEMBER OF THE COMMISSION EXCEPT ITS 
REVIEW OR APPELLATE AUTHORITY AND ITS POWER TO ADOPT, ALTER AND 
SUPPLEMENT ANY RULE OR REGULATION. THE COMMISSION MAY REVIEW UPON 
ITS OWN INITIATIVE OR UPON THE PETITION OF ANY INTERESTED PARTY ANY 
ACTION OF ANY DEPARTMENT OR OFFICE, INDIVIDUAL COMMISSIONER, OR STAFF 
MEMBER OF THE COMMISSION. 
 
THE COMMISSION SHALL BE UNDER THE DIRECT CONTROL AND 
SUPERVISION BY THE BANGKO SENTRAL NG PILIPINAS.” 
 
SEC. 2. A new section, Section 437-A, is hereby inserted to Republic Act No. 10607 to read 
as follows: 
“Section 437-A. The COMMISSION shall have the duty to see that all laws relating to 
insurance, insurance companies and other insurance matters, mutual benefit associations, 
and trusts for charitable uses are faithfully executed and to perform the duties imposed by this 
Code, and shall, notwithstanding any existing laws to the contrary, have sole and exclusive 
authority to regulate the issuance and sale of variable contracts as defined in Section 238 
hereof and to provide for the licensing of persons selling such contracts, and to issue such 
reasonable rules and regulations governing the same. 
The COMMISSION may issue such rulings, instructions, circulars, orders and decisions 
as may be deemed necessary to secure the enforcement of the provisions of this Code, to 
ensure the efficient regulation of the insurance industry in accordance with global best 
practices and to protect the insuring public. Except as otherwise specified, decisions made by 
the COMMISSION shall be appealable to the GOVERNOR OF THE BANGKO SENTRAL NG 
PILIPINAS. 
In addition to the foregoing, the COMMISSION shall have the following powers and 
functions: 
xxx 
(g) Punish for contempt of the COMMISSION, both direct and indirect, in accordance with 
the pertinent provisions of and penalties prescribed by the Rules of Court; 
xxx 
(o) To fix and assess fees, charges and penalties as the COMMISSION may find reasonable 
in the exercise of regulation; and 
xxx 
 
The Commission shall indemnify the COMMISSIONERS and other officials of the 
Commission, including personnel performing supervision and examination functions, for all 
costs and expenses reasonably incurred by such persons in connection with any civil or 
criminal actions, suits or proceedings to which they may be made a party to by the reason of 
the performance of their duties and functions, unless they are finally adjudged in such actions, 
suits or proceedings to be liable for negligence or misconduct. 
xxx 
 
The costs and expenses incurred in defending the aforementioned action, suit or 
proceeding may be paid by the Commission in advance of the final disposition of such action, 
suit or proceeding upon receipt of an undertaking by or on behalf of the COMMISSIONERS, 
officer or employee to repay the amount advanced should it ultimately be determined by the 
Commission that the person is not entitled to be indemnified. 
 
SEC. 3. Section 438 of Republic Act No. 10607 is hereby amended to read as follows: 
“Section 438. In addition to the administrative sanctions provided elsewhere in this 
Code, the Insurance COMMISSION is hereby authorized, at ITS discretion, to impose upon 
insurance companies, their directors and/or officers and/or agents, for any willful failure or 
refusal to comply with, or violation of any provision of this Code, or any order, instruction, 
regulation, or ruling of the Insurance COMMISSION, or any commission or irregularities, 


 
and/or conducting business in an unsafe or unsound manner as may be determined by the 
Insurance COMMISSION, the following: 
xxx 
 
SEC. 4. Section 439 of Republic Act No. 10607 is hereby amended to read as follows: 
"Section 439. The COMMISSION shall have the power to 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, or for which such insurer may be liable under 
a contract of suretyship, or for which a reinsurer may be sued under any contract of 
reinsurance it may have entered into; or for which a mutual benefit association may be held 
liable under the membership certificates it has issued to its members, where the amount of 
any such loss, damage or liability, excluding interest, cost and attorney’s fees, being claimed 
or sued upon any kind of insurance, bond, reinsurance contract, or membership certificate 
does not exceed in any single claim Five million pesos (P5,000,000.00). 
"The power of the COMMISSION does not cover the relationship between the insurance 
company and its agents/brokers but is limited to adjudicating claims and complaints filed by 
the insured against the insurance company. 
"The COMMISSION may authorize any officer or group of officers under him to conduct 
investigation, inquiry and/or hearing and decide claims and he may issue rules governing the 
conduct of adjudication and resolution of cases. The Rules of Court shall have suppletory 
application. 
"The party filing an action pursuant to the provisions of this section thereby submits his 
person to the jurisdiction of the COMMISSION. The COMMISSION shall acquire jurisdiction 
over the person of the impleaded party or parties in accordance with and pursuant to the 
provisions of the Rules of Court. 
"The authority to adjudicate granted to the COMMISSION under this section shall be 
concurrent with that of the civil courts, but the filing of a complaint with the COMMISSION 
shall preclude the civil courts from taking cognizance of a suit involving the same subject 
matter. 
"Any decision, order or ruling rendered by the COMMISSION after a hearing shall have 
the force and effect of a judgment. Any party may appeal from a final order, ruling or decision 
of the COMMISSION by filing with the COMMISSION within thirty (30) days from receipt of 
copy of such order, ruling or decision a notice of appeal to the Court of Appeals in the manner 
provided for in the Rules of Court for appeals from the Regional Trial Court to the Court of 
Appeals. 
"For the purpose of any proceeding under this section, the COMMISSION, or any officer 
thereof designated [by him] is empowered to administer oaths and affirmation, subpoena 
witnesses, compel their attendance, take evidence, and require the production of any books, 
papers, documents, or contracts or other records which are relevant or material to the inquiry. 
"A full and complete record shall be kept of all proceedings had before the 
COMMISSION, or the officers thereof designated by him, and all testimony shall be taken 
down and transcribed by a stenographer appointed by the COMMISSION. 
"In order to promote party autonomy in the resolution of cases, the COMMISSION shall 
establish a system for resolving cases through the use of alternative dispute resolution. 
 
SEC. 5. Separability Clause. – If any provision of this Act shall be held unconstitutional or 
invalid, the other provisions not otherwise affected shall remain in full force and effect. 
 
SEC. 6. Repealing Clause. – All laws, decrees, executive orders, rules and regulations or 
parts thereof which are contrary to or inconsistent with this Act are hereby repealed, amended 
or modified accordingly. 
 
SEC. 7. Effectivity. – This Act shall take effect fifteen (15) days after its complete publication 
either in the Official Gazette or in a newspaper of general circulation. 
Approved,