oe BREE
RECEIVED @
, 09 DE rn

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

6760

HOUSE BILL NO.

Introduced by
REPRESENTATIVE PANTALEON D. ALVAREZ

AN ACT FURTHER AMENDING SECTION 27 OF PRESIDENTIAL
DECREE NO. 1146 EXEMPTING THE REINSURANCE POLICIES OF
THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS)
FROM THE PROVISIONS OF REPUBLIC ACT NO. 9184

EXPLANATORY NOTE

The Government Service Insurance System (GSIS) was created in
1936, pursuant to Commonwealth Act No. 186. It was then amended by
Presidential Decree No. 1146 and was further amended by Republic Act
No. 8291 or the GSIS Act of 1997.

GSIS, in principle, should be given the authority to determine the
capability of the participating institutions to be financially sound
whether private or publicly owned and foreign or domestic. GSIS should
guarantee that the awarded contract shall be the most advantageous for
the government.

In view of the foregoing, immediate e of this bill is earnestly
sought.

P. LEON D. AREZ

AST/JNA/SYI


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

6760

HOUSE BILL NO.

Introduced by
REPRESENTATIVE PANTALEON D. ALVAREZ

AN ACT FURTHER AMENDING SECTION 27 OF PRESIDENTIAL
DECREE NO. 1146 EXEMPTING THE REINSURANCE POLICIES OF
THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS)
FROM THE PROVISIONS OF REPUBLIC ACT NO. 9184

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 27 of Presidential Decree No. 1146, further amended
by Republic Act No. 8219, otherwise known as the Government Service
Insurance System (GSIS) Act of 1997, is hereby further amended to read
as follows:

“SECTION 27. Reinsurance. — The GSIS may reinsure any of its
interests or part thereof TO any FINANCIALLY SOUND AND
CAPABLE private company or reinsurer whether domestic or
foreign, OR TO ANY INSURANCE INSTITUTION OWNED
AND OPERATED BY A FOREIGN GOVERNMENT AGENCY:
PROVIDED, THAT IN THE AWARD OF REINSURANCE
POLICIES, THE GSIS SHALL BE EXEMPT FROM THE
PROVISIONS OF REPUBLIC ACT NO. 9184 AND SHALL
ENSURE THAT THE CONTRACT TO BE AWARDED SHALL
BE THE MOST ADVANTAGEOUS FOR THE GOVERNMENT
OF THE PHILIPPINES. PROVIDED FURTHER, THAT THE

Page 2 of 3


GSIS SHALL HAVE THE AUTHORITY TO DETERMINE THE
CAPITALIZATION AND FINANCIAL — RESERVE
REQUIREMENTS OF ITS REINSURERS; Provided FINALLY,
That the GSIS shall submit an annual report on its reinsurance
operations to the Insurance Commission.

SECTION 3. Separability Clause - If any of the sections or provisions of
this Act is held invalid, all other provisions not affected thereby shall
remain valid.

SECTION 4. Repealing Clause - All other laws, acts, presidential
decrees, executive orders, issuances, presidential proclamations, rules
and regulations or parts thereof which are contrary to or inconsistent
with any provision of this Act are hereby repealed, amended or
modified accordingly.

SECTION 5. Effectivity - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general

circulation.

Approved,

Page 3 of 3