THE SECURITIES REGULATION CODE (R.A. NO.

8799)

A. State Policy, Purpose *

– Sec 2
1. Why the policy against securities fraud?
a) BW scandal
b) IOSCO on securities regulation
c) Securities fraud is a predicate offense under AMLA
2. Powers and functions of SEC
– Secs. 4 - 7
a) Under the SRC and the Corporation Code, and related laws
e.g. Investment Houses Law, Investment Company Act, Financing Company Act,
Lending Company Act. Microfinance Regulatory Council Act, Credit Information
System Act, AMLA
b) Transferred jurisdiction under PD 902A
– Sec. 5.2 *****
Questions of ownership; intra-corporate disputes**
 Gonzales et al v GJH Land, Inc et al GR 202664 Nov 10, 2015;
 SEC v Subic Bay Golf et al GR 179047 Mar 11, 2015
c) Power to initiate criminal complaint for securities fraud
d) Power to appoint management committee
 Pablo Roman Jr. and Atty Matias Defensor v SEC GR 196329 Jun 1, 2016
e) Power to license and regulate the SROs, market players and trading
participants such as investment companies, investment houses, brokers, underwriters,
sales associates, salespersons, etc.
f) Power to prescribe financial reporting/ accredit auditors, appraisers, valuation
companies
– Sec 68

B. Definition and Kinds of Securities*

– Sec 3.1
1. Equity
2. Fixed income securities (debt instruments, bonds; distinguish from deposit
substitutes)
 Banco De Oro et al v Republic et al GR 198756 Jan 13, 2015
3. Investment contracts
 See Howey Test cited in Power Homes Unlimited Corp v SEC GR no 164182,
Feb 26, 2008;
 SEC v Prosperity Com, Inc. GR 164197 Jan 25, 2012;
 Puerto v Pp [Tibayan case] GR 236564 Apr 23, 2018;
 Abacus Capital and Investment Corp v Dr. Tabujara GR 197624 Jul 23, 2018),
Contracts of participation, club memberships
– Rule 3.1.13 -15 [proprietary or non-proprietary]
4. Derivatives (options and warrants)
– Rule 3.1.9; 12.1.3.2
5. Others
C. Definition of other Terms
– Sec 3.2 et seq
1. SROs – exchange, clearing agency, transfer agent, securities depository
2. Market participants – issuer (Rule 3.1.11), trader, broker, dealer, promoter, sales
persons, associates, underwriter
3. Prospectus, registration statement, registrant, disclosures, common enterprise,
solicitation
– Rule 3.1.1; Rule 26.3
4. Uncertificated securities
– Sec 43

D. Classes of Securities according to whether or not requiring SEC registration

1. Exempt Securities *
– Sec 9 under the SRC;
– Rule 9.1.2.1 to 9.1.2.4 by SEC
2. Exempt Transactions
a) Sec 10 under the SRC (take note of some - isolated transaction, stock
dividends, bond issuance, exchange of security, broker’s transaction, subscription
prior to incorporation or increase, sale to fewer than 19 people in a 12 month period,
sale to qualified buyers, primary institutional lenders;
b) Rule 10.2.2 and 10.2.3 3 by SEC limited public offering, application for
exemption

E. Requirement and Procedure for Registration of Securities **

– Sec 8 and 12 ; Rule 8.1.3 to 8.1.3.8.4
1. Rationale for registration
 PSE v CA 281 SCRA 232 (1997);
 SEC v CA 246 SCRA 738 (1995);
 Pp v Ervin Y. Mateo GR 210612 Oct 9, 2017
2. Requirements
– Sec 8, prospectus, SEC approval, full disclosure, public offering
– Rule 3.1.17, 8.1.1.5
Procedure – Sec 12
Parties involved – issuer, underwriter (Rule 12.1.1), syndicate manager
Rejection and revocation – Sec 13;
 SEC v Universal Rightfield Property Holdings, Inc. GR 181381 Jul 20, 2015;
Suspension – Sec 15

F. Reportorial Requirements
1. Issuers – Sec 17
2. Five percentum holders of equity – Sec 18

G. Protection of Investors
1. Tender Offer Rule **
– Sec 19.1;
– Rule 19.2.2 disclose intention and 19.2.4 make tender offer;19.2.5 result in
ownership of 51%;
 CEMCO Holdings Inc. v National Life GR 171815 Aug 7, 2007
2. Proxy Solicitation – Sec 20.1 Rule 20.4;
 Margin trading
 Abacus Securities Corp v Ampil GR 160016 Feb 27, 2006
3. Obligation to disclose by directors, officers and principal stockholders – Sec. 23

H. Prohibitions on Fraud, Manipulation and Insider Trading

1. Manipulation of Security Prices – Sec 24 *
a) Kinds of market manipulation
b) What securities may be subject of market manipulation
c) What is false and misleading information that may involve manipulation?
d) Special types
(i) Wash sale *
(ii) Hype and dump
(iii) Squeezing the float
2. Fraudulent Transactions – Sec 26
 SEC v Price Richardson Corporation GR No. 197032 Jul 26, 2017;
 SEC v Oudine Santos GR 195542 Mar 19, 2014
3. Insider Trading – Sec 27
 Jardeleza v Sereno, et al Gr 213181 Aug 19, 2014;
 Jaime Dischaves v Ombudsman GR 206310-11 Dec 7, 2016
a) Who is an insider – Sec 3.8 ***
b) Elements of insider trading – Sec. 27 **
c) Liabilities of insider and others – Sec 23 *
d) What is a short sale?
e) Right to recover short swing profits – Sec 23.2

I. Regulation of Securities Market Professionals

1. Registration of brokers, dealers, salesmen and associated persons
– Sec 28;
2. Revocation, refusal or suspension – Sec 29
3. Transactions and responsibility of brokers and dealers – Sec 30

J. SROs
1. Exchanges and other securities trading markets – Sec 33
2. Brokers, dealers and other securities related organizations – Sec. 39;
Liabilities – Sec 52
3. Powers of SEC – Sec 40; Sec 53
 CDO GSIS v. CA, et al., GR 183905, April 16, 2005
4. Clearing agency – Sec 41
5. Margin trading – Sec 48
 BH Chua Securities Corp. v Johnston Sia-Uy et al GR 202485 Feb 22, 2017

K. Liability for violation of the SRC and securities fraud

1. Violation of the SRC
a) Liability of controlling persons, aider and abettor – Sec 51
b) Administrative sanctions – Sec 54
 SEC v G Cosmos Philippines Inc. GR 167435 Apr 20, 2015
c) CDO – Sec 64
 SEC. et al v CJH Dev Corp et al, GR 210316 Nov 28, 2016;
  Primanila Plans, Inc v SEC GR 193791 Aug 6, 2014
2. Civil liability (amount of damages to be awarded – Sec 63)
a) For false registration – Sec 56;
In connection with prospectus, etc. – Sec 57
b) Aggrieved party may seek civil recovery of damages (RTC) arising from
fraudulent transaction – Sec 58 *
Market manipulation – Sec 59 and
Insider trading – Sec 6
3. Criminal liability – SEC has exclusive jurisdiction to initiate criminal complaints for
violation of the SRC
 Intreport Case;
Must specify SRC provision violated
 Pp v Pastrana et al, GR 196045 Feb 21, 2018
4. Prescription – Sec 73;
 Citibank N.A and the Citigroup Private Bank v Ester H. Tanco-Gabaldon, et al
GR 198444 Sep 4, 2013
 BANKING LAWS

A. The New Central Bank Act (R.A. No. 7653) – Sec. 3;

 Bank of Commerce v Planters Dev Bank and BSP GR 15447071 Sep 24, 2012;
 CB BOL v BF Savings and Mortgage Bank GR 173399 Feb 21, 2017
1. Responsibility, Functions and Primary Objective * – Sec 1, 3
2. Monetary Board; Powers and Functions – Sec 4;
 Bank of Commerce v Planters Development Bank and BSP GR 154470-71 Sep
24, 2012, 681 SCRA 521, 555 ;
 The Hon. Monetary Board and Gail Fule v Phil Veterans Bank, GR 189571 Jan
21, 2015 ;
– Sec 113, 115, 117-119 and 123
3. Governor – Sec 17
4. Banks in Distress *** – “close no, hear later” doctrine
 BSP MB v Hon. Antonio Valenzuela GR 184778 Oct 2, 2009, 602 SCRA 698 ;
 Rural Bank of Buhi v CA 162 SCRA 288;
– Secs 83 (loans without collateral) , 84 (emergency loans)
a) Conservatorship – Sec 29
b) Receivership and Liquidation – Sec 30;
 Apex Bancrights Holdings, Inc. et al v BSP and PDIC GR 214866 Oct 2
2017;
 PDIC v BIR GR 172892 Jun 13, 2013;
 Alfeo D. Vivas and Eurocredit Community Bank v MB et al GR 191424,
Aug 7, 2013;
 Yuseco et al v PDIC as Statutory Liquidator of Unitrust Development
Bank, GR 217899 Sep 28, 2016
c) Remedies
 CB v CA 106 SCRA 143;
 BF v MB 204 SCRA 747
5. Legal Tender Power * – Sec 52;
 Subic Bay Legen Resorts and Casinos v Bernard Fernandez GR 193426 Sep 29,
2014 on casino chips;
 Federal Express Corporation v Luwalhati R Antonino et al GR 199455 Jun 27,
2018
6. Reserves; Bank deposits and deposit substitutes – Sec 94; 95
7. Foreign Exchange Operations

B. General Banking Law of 2000 (R.A. No. 8791)

1. Definition and Classification of Banks*** – Sec 2
Nature of business;
 Central Bank of the Phil v CA 208 SCRA 652;
 Simex Int’l v CA 183 SCRA 361;
– Sec 3;
– Thrift Banks Act of 1995 RA 7906 Sec 3 (a);
– The Rural Bank Act of 1992 RA 7353 Sec 3;
– The Cooperative Code of the Philippines RA 6938;
– Islamic Bank RA 6848; Sec 54
A bank cannot engage in the business as the insurer;
 Foreign banks – Sec 11, RA 7721 as amended by RA10641; Sec 22
2. Distinction of Banks from Quasi-Banks, Trust and other Entities
– Sec 4,8;
 Banas v Asia Pacific Finance Corp v xxx GR 128703 Oct 18, 2000;
 Republic v Security Credit and Acceptance Corp GR L020583 Jan 23, 1967
3. Bank Powers, Functions and Liabilities
4. Diligence Required of Banks
5. Grant of Loans and Security Requirements*
– Sec 35, 37, 38,41, 43, 47, 57
6. Ratio of Net Worth to Total Risk Assets – Sec 34
7. Single Borrower’s Limit - Sec 35
8. Restrictions on Bank Exposure to DOSRI (Directors, Officers, Stockholders and their
Related Interests)* – Sec 36;
 Ramoso v CA GR 117416
9. Foreclosure of REM *** – Sec 47, 51
10. Prohibited Acts or Transactions* - Secs 11, 12, 13, 55.2, 70

C. Law on Secrecy of Bank Deposits (R.A. No. 1405, as amended; Foreign Currency
Deposit Act RA 6426, as amended or “FCDA”) ***** – Sec 2;
 BSB Group Inc v Sally Go, GR 168644, Feb 16, 2010;
 BSP v Purisima 161 SCRA 576; Sec 2 of RA 3936;
 Intengan v CA Feb 15, 2002;
 Melon Bank v Magsino 190 SCRA 633;
 Marquez v Desierto 359 SCRA 772 (2001)
1. Purpose
2. Prohibited Acts
– Sec 55 (b);
 Ejercito v SB 509 SCRA 140 (2006);
 Dona Adela Export International Inc. v Trade and Investment Dev Corp GR
201931 Feb 11, 2015
3. Deposits Covered
 GSIS v CA et al GR 189206 Jun 8, 2011
4. Exceptions
 GSIS v Ca GR 189206 Jun 8, 2011
– Secs 9, 10 and 11 of AMLA;
– Unclaimed Balances Act RA 3936;
– Secs 27 and 28 RA 8372 or the Human Security Act of 2007;
– Sec 8 par 8 of RA 9576 or the PDIC Act;
– Sec 6F of the NIRC
5. Garnishment of Deposits, including Foreign Deposits *
 China Banking Corp v Ortega 49 SCRA 355;
 Benedicto and Riviera v CA 364 SCRA 334 (2001);
– Sec 8 FCDA

D. Anti-Money Laundering Act (R.A. No. 9160, as amended by R.A. No. 9160, 9194 and
10365)***
1. Policy of the law ; exception to the Law on Secrecy of Bank Deposits
  Subido et al v CA GR 216914 Dec 6, 2016
2. Anti-Money Laundering Council (AMLC) powers and functions
3. Covered Persons (including DNFBP) and their Obligations* – Sec 3, 9
a) KYC
 Land Bank v Artemio San Juan Jr GR 186279 Apr 2, 2013
b) Record keeping
c)
4. Covered Transaction Report (CTR) v Suspicious Transaction Report (STR) –
threshold amounts
5. Unlawful Activities or Predicate Crimes*
6. Money laundering; how committed
 PDIC v Manu Gidwani GR 234616 Jun 20, 2018
7. Order allowing inquiry into bank deposits ; where no order is necessary –
 Republic v Bolante et al GR 186717 Apr 17, 2017

8. Freeze order
 Republic v First Pacific Network Inc. GR 156646 Nov 19, 2014 (Notice);
 Ligot et al v Republic GR 176944 Mar 6, 2013
9. Civil forfeiture
 Republic v Manalo, et al GR 192303 Jun 4, 2014

E. Deposit Insurance (RA 3591 as amended by RA 10846)

1. Meaning of deposit – Sec 6
2. Covered deposit
3. Deposits not covered
 PDIC v Citibank GR 170290 Apr 11, 2012
4. Powers of PDIC – Secs 8, 9, 11 and 12
5. Liability of PDIC
 PDIC v CA 283 SCRA 462 (1997)
 THE INSURANCE CODE, as amended by RA 10607

A. Contract of Insurance * – Sec. 2

1. What may be insured – Sec 3 to 5
Health care agreement
 Philamcare Health Systems, Inc. v CA et al GR 125678 Mar 18, 2002

2. Parties – Sec 6

3. Insurable Interest – Secs 10 to 25

a) In Life/Health - **** need not be based on kinship or legal obligation;
marriage is void irrelevant
(i) Who may be insured *
(ii) Designation of beneficiary **
– Civil Code Arts. 2012 and 739;
Irrevocable beneficiary
 Gercio v Sun Life Assurance Company of Canada 48 Phil 53 (1925
(iii) Doubt as to who procured insurance Manila Bankers Life
 Insurance Corp. v Cresencia Aban GR 175666 Jul 29, 2013
b) In Property **** –
(i) insurable interest of mortgagee and mortgagor **
 San Miguel Brewery etc v Law Union and Rock Insurance Co., Ltd
et al GR 14300 Jan 19, 1920;
 SPs Go It Bun and Choi Ping Tai v Hon. Dizon et al, GR 75915
Sep 18, 1992
(ii) cash and carry rule * ; installment premiums
 Makati Tuscany Condominium Corp v CA Nov 6, 1992
(iii) insurance indemnity payable to whom
 Reynaldo Ramos v LBP GR 234344 Feb 7, 2018
(iv) proof of insurable interest
 Frederick Felipe v MGM Motor Trading Corp GR 191849 Sep 23,
2015
(v) insurable interest of goods – under trust receipt
 Marques and Maxilite Technologies v FEBTC, FEBTC Insurance
Brokers and Makati Insurance Co., GR 171379 Jan 10, 2011;
Owned by lessee
 Sps Nilo Cha and Steela Uy Cha et al v CA et al GR 124520 Aug
18, 1997;
Consignee
 Filipino Merchants Insurance Co., Inc. v CA et al GR 85141 Nov
28, 1989
(vi) building contractor’s insurable interest
 Antonio Lampano v Placida Jose et al GR 9401 Mar 1915

c) Double Insurance and Over Insurance

 Armando Geagonia v CA and Country Bankers GR 114427 Feb 6, 1995
d) Multiple or Several Interests on Same Property
e) Transfer of interest *
4. Concealment **** – Sec 26 to 35
a) Effect of concealment - concealment must be established by satisfactory and
convincing evidence
 Philamcare Health Systems, Inc. v CA et al GR 125678 Mar 18, 2002;
Unintentional concealment ground for rescission
 Ignacio Saturnino v The Philippine American Life Insurance Company GR
L-16163 Feb 28, 1963
b) Duty of insured to disclose
c) Determination of materiality; non-medical insurance Sunlife
 Assurance Company of Canada v CA and Sps Bacani GR 105135 Jun 22,
1195;
 Saturnino v Philam 7 SCRA 361;
 Philippine AXA Life Insurance Corp v Corazon Tabora GR 211367 Jun 4,
2014
5. Representation – Sec 36 to 48
6. The Policy – Secs 49 to 66
a) Form; as evidence
 Equitable Insurance Corporation v. Transmodal Intl Inc. GR 223592 Aug
7, 2017;
 Sun Insurance Office Ltd v CA and Emilio Tan GR 89741 Mar 13, 1991
b) Specifications – Sec 51;
Ambiguity of “loss” and “damage” in theft clause
 Alpha Insurance and Surety Co v Arsenia Castor GR 198174 Sep 2, 2013
(i) Parties
(ii) Amount insured
(iii) Premium
(iv) Property or life
(v) Insurable interest
(vi) Risks
(vii) Period of insurance
c) Cover notes – Sec 52
d) Open, valued or running – Sec 59
e) Cancellation – Sec 64
 Santos B. Areola et al v CA and Prudential Guarantee and Assurance In.,
GR 95641, Sep 22, 1994;
 Malayan Insurance Co., Inc. Gregoria Cruz Arnaldo, et al GR L-67835
Oct 12, 1987
f) Causes
g) Notice
h) Renewal (other than life insurance)
7. Warranties – Secs 67 to 76
a) Breach of Warranties *
 Perla Cia de Seguros v CA 208 SCRA 487 where the car is admittedly
unlawfully taken it is theft covered by the theft clause and not by
authorized driver clause;
 Paterno v Pyramid 161 SCRA 677 authorized driver rule not applicable
where person driving is the one insured;
8. Premium – Secs 77 to 84
a) When due and payable – Sec 77;
  Cocoplans Inc. v Rosita Pajel GR No. 231618 Mar 5, 2018
b) Entitlement to return of premium – Sec 80, 81, 83
c) Future premiums – Sec 84
d) Premium Payment ****
(i) Where partial payment already made at the time of loss insurer become
liable and may deduct unpaid premiums
 UCPB General Insurance v Masagana Telamart GR 137172 Apr 4,
2001
(ii) If the check payment was received prior to loss or within credit period,
recovery will be allowed
 South Sea Surety v CA GR 102253 Jun 2, 1995
(iii) Insurer cannot forfeit where it held check payment for premium for
unreasonable time
 Malayan Ins v. Arnaldo GR L-67835 Oct 12, 1987
(iv) Proof of payment
 Marques and Maxilite Technologies v FEBTC, FEBTC Insurance
Brokers and Makati Insurance Co., GR 171379 Jan 10, 2011
(v) General rule is the Insurer’s receipt of premium payment must be
before loss; exceptions
 Jaime T. Gaisano v Development Insurance and Surety
Corporation GR 190702 Feb 27, 2017
(vi) Can the original insured NEA be held liable for the non-payment by
GSIS of the fourth and last reinsurance premium?
 GSIS v Prudential Guarantee and Assurance Inc., et al GR 165585
Nov 20, 2013
(vii) Partial payment
 Sps Antonio A. Tibay et al v CA and Fortune Life and General
Insurance Co. Ins., GR 119655 May 24, 1996 (read dissenting
opinion too)
e) When insured entitled to recover premiums **
f) Doctrine of contributory negligence
9. Loss – Sec 85 to 89
10. Notice of Loss – Sec 90 to 94

11. Double insurance – Sec 95, 94 ***

a) double recovery ***
b) meaning of “other insurance clause”
 American Home Assurance v Chua GR 130421 Jun 1991;
When there is double insurance
 Malayan Insurance Co., Inc. v Philippines First Insurance Co., and
Reputable Forwarder Services, Inc. GR 184300, Jul 11, 2012
12. Reinsurance – Sec 97 to 100; v co-insurance *
a) Reinsurance contracts insured in favor of the direct insurer not the original
insured
 Communication and Information Systems Corporation v Mark Sensing
Australia Pty Ltd., GR 192159 Jan 25, 2017

B. Classes of Insurance
1. Marine Insurance * – Sec 101 to 168
 a) Extent and scope – “all risks policy”
 Filipino Merchants Insurance Co., Inc. v CA et al GR 85141 Nov 28, 1989
b) Insurable interest
c) Concealment
d) Representation
e) Implied warranties **
 The Philippine American General Insurance Company Inc v CA and
Felman Shipping Lines GR 116940 Jun 11, 1997
f) Voyage and proper deviation v improper deviation *
g) Loss: total loss v actual total loss
 Pan Malayan Insurance Corp v CA 201 SCRA 382 (1992)
h) Abandonment *
i) Measure of indemnity

2. Fire Insurance – Sec 169 to 175

a) Renewal on an “as is” basis where there is change of location
 Malayan Insurance Company Inc. v PAP Co., Ltd GR 200784 Aug 7, 2013
b) Fraudulent claim voids policy
 United Merchants Corp v. Country Bankers Insurance Corp GR 198588
Jul 11, 2012
c) Insurance against earthquake shock
 Gulf Resorts Inc v Phil Charter Insurance Corp.GR 156157 May 16, 2005
d) Can “book debts” relating to goods be insured against fire
 Gaisano Cagayan Inc v Insurance Company of North America GR 147839
Jun 8, 2006

3. Casualty Insurance ** – Sec 176;

Loss caused by dishonest employees
 Fortune Insurance and Surety Co., Inc. v CA et al, GR 115278 May 23, 1995;
Personal accident insurance of seafarers
 Phil-Nippon Kyoei v Rosalia Gudelosao et al, GR 181375 Jul 13, 2016
4. Suretyship – Sec 177 to 180;
Guarantee to pay the purchase price
 Standard Vacuum Oil Company v Loreto Paz et al GR L-16029 Oct 31, 1960;
 Melecio Arranz v Manila Fidelity and Surety Co., Inc GR L-9674, Apr 29, 1957
5. Life Insurance – Sec 181 to 186
a) suicide v. willful exposure to peril
 Sun Insurance Office Ltd v CA 211 SCRA 554 (1992) *
b) general rule and exception as to death or injury resulting from accident or
accidental means *
 De La Cruz v Capital Insurance and Surety Co 17 SCRA 559;
 Finman General Assurance Corp v CA 213 SCRA 493
c) Incontestability clause ****
 Sunlife Assurance Company of Canada v CA 245 SCRA 268 (1995);
 Manila Bankers Life Insurance Corp. v Cresencia Aban GR 175666 Jul
29, 2013
d) Non-Default Options in Life Insurance
 e) Reinstatement of a Lapsed Policy of Life Insurance, when incontestability
period begins
 The Insular Life Assurance v Paz Y Khu et al GR 195176 Apr 18, 2016
f) Prescription *
 Sun Insurance Office Ltd v CA 195 SCRA 193;
 BPI and FGU Insurance v Yolanda Laingo GR 205206 Mar 16, 2016
No prescription against claim where heirs of deceased did not know of
existence of life insurance policy
6. Microinsurance – Sec 187 to 188
C. Financial Reporting Framework – Sec 189
D. The Business of Insurance
1. Insurance Companies – Sec 190 to 199
 White Gold Maine Services, Inc. v Pioneer Insurance and Surety Corp and the
Steamship Mutual Underwriting Asso (Bermuda) LTD GR 154514 Jul 28, 2005
What is a “mutual insurance company”; need for a separate license as insurance
agent; what is insurance business
 White Gold Marine Services Inc v Pioneer Insurance and Surety Corporation and
the Steamship Mutual Underwriting Association Bermuda Ltd., GR No 154514
Jul 28, 2005
2. Solvency – Sec 200, 201
3. Assets – Sec 202, 203; security deposit with IC
 Capital Insurance and Surety Co., Inc v Del Monte Works, Inc., GR 159979 Dec
9, 2015
4. Investments – Sec 204 to 215
5. Reserves – Sec 216 to 220
6. Limit of Single Risk – Sec 221
7. Reinsurance Transactions – Sec 222 to 228
8. Annual Statement – Sec 229 to 230
9. Policy Forms – Sec 232 to
a) IC approval required
b) Substantial conditions to be included
c) Group life insurance * - Employer acts as agent of insurer
 Pineda v CA 226 SCRA 154
d) Industrial life insurance
10. Variable Contracts – Sec 238 to 246
11. Claims Settlement – Secs 247 to 251
 Prudential Guarantee and Assurance Inc. v Trans-Asia Shipping Lines, Inc., GR
151890 Jun 20, 2006
a) Notice and Proof of Loss
b) Guidelines on Claims Settlement
(i) Unfair Claims Settlement; Sanctions
(ii) Prescription of Actions
(iii) Subrogation
12. Examination of Companies – Sec 252, 253
13. Suspension or Revocation of Authority – Sec 254
14. Appointment of Conservator – Sec 255
15. Proceedings for Insolvency – Sec 256, 257
16. Consolidation and Merger of Insurance Companies – Sec 258 to 267
17. Mutualization of stock life insurance – Sec 268 to 280
  Republic v Sunlife GR 158085 Oct 14, 2005
18. Withdrawal of Foreign Insurance Companies – Sec 281 to 287
19. Professional Reinsurers – Sec 288 to 289
20. Holding Companies – Sec 290 to 306
E. Sales Agencies and Technical Services
1. Insurance Agents and Insurance Brokers – Sec 307 to 318
 AFP Mutual Benefit Association Inc v NLRC GR 102199 Jan 28, 19971
2. Reinsurance Brokers – Sec 319 to 321
3. Resident Agents – Sec 322 to 326
4. Non-Life Company Underwriter – Sec 327 to 331
5. Adjusters – Sec 332 to 343
6. Actuaries – Sec 344 to 372
7. Rating Organization and Rate Making – Sec 348 372
8. Provision Common to agents, brokers and adjusters – Sec 373 to 374
9. Bancassurance – Sec 375 to 385
F. Compulsory Motor Vehicle Liability Insurance *** – Sec 386 to 402
1. Right of injured person to sue insurer of party at fault; indemnity against third party
liability
 Schafer v Judge RTC Olongapo City 167 SCRA 386;
Subrogation
 Manila Mahogany Manufacturing Corporation v CA and Zenith Insurance
Corporation GR 52756 Oct 12, 1987
2. Basis and extent of insurer’s liability
 Malayan Insurance Co., Inc. v CA 165 SCRA 136;
 Fuguracion vda de Maglana et al v Hon. Judge 212 SCRA 268 (1992)
3. Driver’s act of depriving owner of car at or soon after transfer of physical possession
constitutes theft which is compensable
 People v Roxas 53 OG 716 (1956)
4. Comprehensive motor vehicle insurance policy; theft of insured vehicle
 Paramount Insurance Corporation v Spouses Remondeulaz GR 173773 Nov 28,
2012
G. Mutual Benefit Associations and Trusts for Charitable Uses
1. Mutual Benefit Associations – Sec 403 to 423
2. Trusts for charitable uses – Sec 424 to 428
H. Trust Business in General – Secs 429
I. Registration, Responsibilities and Oversight of SROs – Sec 430 to 436
J. The Insurance Commissioners – Sec 437 to 439
1. Administrative and adjudicatory powers; any changes under RA 10607?
 Midland Insurance Corporation v IAC and Sisenando Villareal GR 71905, Aug
13, 1986
2. Fess and other sources of funds
K. Miscellaneous Provisions