EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SENATE 
S. No. 1743
FLED
DATE
7JME¥
GILLS
NDEX
Introduced by SENATOR RAMON BONG REVILLA, JR.
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
EXPLANATORY NOTE
The insurance industry is a significant driver of the national economy. The 
sector not only promotes the development of capital markets and facilitates long-term 
investments, it also provides our people social security protection, financial stability 
and resilience against external shocks.
In the past years, the industry enjoyed continued growth1. In 2019, the industry 
assets reached Php 1.78 trillion while the industry total net income expanded by 
20.38% compared to the previous year.2
This bill aims to further encourage the growth of the sector by strengthening 
the Insurance Commission and transforming it into a collegial body. Currently, the 
main regulatory agency in charge of the insurance, pre-need companies and health 
maintenance organizations is headed by the Insurance Commissioner, vested with 
extensive administrative and adjudicatory powers and functions.
1 "Sustained growth In insurance sector seen." Published January 29,2020. Accessed on July 6,2020 through 
httDs://www.manilatimes.net/2020/01/29/business/business-top/sustained-erowth-in-insurance-sector-
seen/678109/
2 Insurance Industry Performance, as of the Quarter Ending December 31,2019.
https://www.insurance.gov.Dh/wD-content/uploads/2020/05/2019-lndustrv-Performance-Report-ALL.pdf


As enumerated under the Republic Act No. 10607, the Insurance Commissioner 
is empowered to issue rulings, formulate policies, approve and revoke licenses, impose 
sanctions for violation of laws, prepare and repeal rules and regulations, conduct 
inquiries and investigations, among others.
It is hereby proposed to restructure the Commission into a collegial body 
composed of a Chairperson, who shall act as the Chief Executive Officer, and four 
Commissioners. Under this bill, a vote of three commissioners shall be necessary for 
the adoption of any ruling, order or resolution of the commission. It is hoped that with 
the transfer or dispersion of powers from one commissioner into a multi-member body, 
the organization may benefit from effective collaboration, more intensive deliberation 
and decision making based on broader understanding and diverse perspectives, and 
promotion of impartiality, creativity and transparency.
This measure was recently approved on Third Reading by the House of 
Representatives during the First Regular Session of the 18th Congress.
In this light, the immediate passage of this bill is requested.
RAMOr^ONG REVILLA, JR.


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE 
S. No. 1743
11:59 am
V GILLS
Introduced by SENATOR RAMON BONG REVILLA, JR.
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 Representative of the Philippines in Congress 
assembled:
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Section 1. Section 437 of Republic Act No. 10607 is hereby amended to read
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as follows:
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"SEC. 437. [rhe-InsurancG-Gommissionor shall-be-appointGd-by
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thG-PrGsidGnt-of thG Ropublic-of-thG Philippines-^er-a-term-of- ■six-{-6-)
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yGars -without rGappointmGnt-and-who shall-serve-as-such-until-thG
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succGssor-shall-havG boon appointed-and-qualifiedr-If-thG-InGurancG
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GommissionGr-is TGmovGdbGfore-the-oxpiration-of-his-tGrm-of officGrthG
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rGason-for-thG-rGmoval-must bo-publishGcL]
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"THIS CODE SHALL BE ADMINISTERED BY THE
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INSURANCE COMMISSION, HEREINAFTER REFERRED TO AS
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THE 'COMMISSION', AS A COLLEGIAL BODY COMPOSED OF A
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CHAIRPERSON AND FOUR (4) COMMISSIONERS, WHO SHALL
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BE APPOINTED BY THE PRESIDENT OF THE PHILIPPINES
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WITHOUT REAPPOINTMENT OR EXTENSION. OF THE FIRST
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SET OF APPOINTEES, THE CHAIRPERSON SHALL HOLD OFFICE
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FOR SIX (6) YEARS; AND OF THE FIRST FOUR (4)
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COMMISSIONERS, ONE SHALL HOLD OFFICE FOR FIVE (5) 
YEARS, ONE SHALL HOLD OFFICE FOR FOUR (4) YEARS, ONE 
SHALL HOLD OFFICE FOR THREE (3) YEARS, AND ONE SHALL 
HOLD OFFICE FOR TWO (2) YEARS. ALL SUBSEQUENT 
APPOINTMENTS SHALL BE FOR A PERIOD OF SIX (6) YEARS 
EACH. 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, OF 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 THE 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


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SYSTEM AT A SUM COMMENSURATE TO THE IMPORTANCE AND 
RESPONSIBILITIES ATTACHED TO THEIR POSITIONS.
"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 THE THREE (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. THE VOTE OF THREE (3) COMMISSIONERS SHALL BE 
NECESSARY FOR THE ADOPTION OF ANY RULE, RULING, 
ORDER, RESOLUTION, DECISION OR OTHER ACTS OF THE 
COMMISSION.
"THE COMMISSION MAY, FOR PURPOSES OF 
EFFICIENCY, DELEGATE ANY OF ITS FUNCTIONS TO ANY 
DEPARTMENT OR OFFICE OF THE COMMISSION, AN 
INDIVIDUAL COMMISSIONER, OR STAFF MEMBER OF THE 
COMMISSION, EXCEPT ON 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 COMMISSIONER 
SHALL BE UNDER THE DIRECT SUPERVISION BY THE 
DEPARTMENT OF FINANCE".
"The [InGurancG Gommissioncr] 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 upon


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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.
"The [Commissioner] 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 [Commissioner] 
COMMISSION shall be appealable to the Secretary of Finance.
"In addition to the foregoing, the [Commissioner] COMMISSION 
shall have the following powers and functions:
"x X x;
"(g) Punish for contempt of the [Commissioner] COMMISSION 
both direct and indirect, in accordance with the pertinent provisions of 
and penalties prescribed by the Rules of Court;
"x X x;
"(o) To fix and assess fees, charges and penalties as the 
[Commissioner] COMMISSION may find reasonable in the exercise of 
regulation; and 
"x X X.
"The Commission shall indemnify the [Commissioner, Deputy 
Commissioner], 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.


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X X X.
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"The costs and expenses incurred in defending the aforementioned
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action, suit or proceeding may be paid by the Commission in advance
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of the final disposition of such action, suit or proceeding upon receipt
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of an undertaking by or on behalf of the [GemmissioncrT—Deputy
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Commissioner] COMMISSIONERS, officer or employee to repay the
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amount advanced should it ultimately be determined by the Commission
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that the person is not entitled to be indemnified."
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Sec. 2. Section 438 of Republic Act No. 10607 is hereby amended to read as
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follows:
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"SEC. 438. In addition to the administrative sanctions provided
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elsewhere in this Code, the [Insurance Commissioner] COMMISSION is
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hereby authorized, at [Ws] ITS discretion, to impose upon insurance
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companies, their directors and/or officers and/or agents, for any willful
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failure or refusal to comply with, or violation of any provision of this Code,
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or any order, instruction, regulation, or ruling of the [Insuranc-e
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Commissioner-] COMMISSION, or any commission or irregularities,
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and/or conducting business in an unsafe or unsound manner as may be
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determined by the [Insurance Commissionor] COMMISSION, the
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following:
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"x X X."
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Sec. 3. Section 439 of Republic Act No. 10607 is hereby amended to read as
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follows:
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"SEC. 439. The [Commissiener] COMMISSION shall have the power
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to adjudicate claims and complaints involving any loss, damage or liability
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for which an insurer may be answerable under any kind of policy or
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contract of insurance, or for which such insurer may be liable under a
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contract of suretyship, or for which a reinsurer may be sued under any
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contract of reinsurance it may have entered into; or for which a mutual
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benefit association may be held liable under the membership certificates


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it has issued to its members, where the amount of any such ioss, 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 [Gommtesionef] 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 [GommisGioner] COMMISSION may authorize any officer or 
group of officers under [him] IT to conduct investigation, inquiry and/or 
hearing and decide claims and [he] IT 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 [CommisGionor] 
COMMISSION. The [CommiGGioner] 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 [CommiGGioner] 
COMMISSION under this section shall be concurrent with that of the civil 
courts, but the filing of a complaint with the [CommiGGioner] 
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 [Commissioner] 
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 [Commissioner] COMMISSION by filing with the [CommiGGioner] 
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.


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"For the purpose of any proceeding under this section, the 
[Gommissioncr] COMMISSION, or any officer thereof designated [by 
btm] 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 [Gommissionor] COMMISSION, or the officers thereof designated [by 
him], and ali testimony shall be taken down and transcribed by a 
stenographer appointed by the [Gommissioner] COMMISSION.
"In order to promote party autonomy in the resolution of cases, the 
[Gommissioner] COMMISSION shall establish a system for resolving 
cases through the use of alternative dispute resolution.
Sec. 4. Separability Clause. - If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision or part not otherwise 
affected shall remain valid and subsisting.
Sec. 5. Repealing Clause. - Ali laws, decrees, orders, rules and regulations or 
parts thereof inconsistent with this Act are hereby repeaied or amended accordingly.
Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette ov in two (2) newspapers of general circulation.
Approved,