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PRESIDENTIAL DECREE NO. 1270
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PRESIDENTIAL DECREE NO. 1270 -
AUTHORIZING THE ORGANIZATION AND LICENSING OF A PROFESSIONAL REINSURER
TO BE KNOWN AS THE NATIONAL REINSURANCE CORPORATION OF THE PHILIPPINES
AND DESIGNATING SAID CORPORATION AS THE NATIONAL INSTITUTION THAT WILL
SUBSCRIBE TO THE CAPITAL STOCK OF THE ASIAN REINSURANCE CORPORATION
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WHEREAS, it
is the policy of the promote and develop a strong national insurance
industry and to provide for its integration in the country's economic
and social development;chanroblesvirtualawlibrary
WHEREAS, in line with this policy, there is a pressing need to provide
a well-coordinated and efficient machinery in reinsurance for the
purpose of achieving a higher national retention indispensable to the
growth of healthy insurance and reinsurance markets; chanroblesvirtualawlibrary
WHEREAS, in line also with this policy, it is desirable to utilize the
regional retention capacity to the maximum by participating in regional
or international cooperation or arrangement in insurance and
reinsurance;chanroblesvirtualawlibrary
WHEREAS, the Republic of the Philippines on September 30, 1977 signed
the Agreement establishing the Asian Reinsurance Corporation;chanroblesvirtualawlibrary
WHEREAS, there is a need to have an organization through which the
Philippine insurance and reinsurance markets may participate in the
Asian Reinsurance Corporation or in any other regional or international
cooperation or arrangement in insurance and reinsurance;chanroblesvirtualawlibrary
WHEREAS, Article III, Section 2, of the said Agreement establishing the
Asian Reinsurance Corporation allows a Member-State to designate and
authorize a national institution to subscribe to and purchase the
shares of capital stock allotted to a Member-State.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution do hereby decree, order and make as part of the law of the
land the following: chanroblesvirtualawlibrary
Section 1. National Reinsurance Corporation of the
Philippines: Authority to license. — Any provision of law, decree,
executive order, administrative order, letter of instruction, rules and
regulations to the contrary notwithstanding, authority is hereby
granted to the Insurance Commissioner to license a corporation to be
organized under the provisions of Act No. 1459, otherwise known as the
Corporation Law, as a professional reinsurer under Presidential Decree
No. 612, otherwise known as the Insurance Code, which corporation shall
be known as the "National Reinsurance Corporation of the Philippines".
Section 2. The Insurance Commissioner shall approve
the Articles of Incorporation and By-Laws of the said corporation to
ascertain the carrying out of the purposes herein above enumerated and,
upon approval of the said Articles of Incorporation and By-Laws, shall
forward the same to the Securities and Exchange Commission for
registration.
Section 3. The national Reinsurance Corporation of
the Philippines is hereby designated as the national institution
authorized to subscribe to the portion of the capital stock of the
Asian Reinsurance Corporation allotted to the Republic of the
Philippines in the amount of US $500,000. The Insurance Commissioner is
hereby designated as the Philippine representative to the Council of
Members of the Asian Reinsurance Corporation. chanroblesvirtualawlibrary
Section 4. Upon the commencement of operations of the
National Reinsurance Corporation of the Philippines, all non-life
insurance and reinsurance companies doing business in the Philippines
shall cede to the National Reinsurance Corporation of the Philippines
at least ten percent (10%) of all new reinsurance placed which would
otherwise be outward foreign reinsurance as well as of the renewals of
such new reinsurance placements.
The aforesaid compulsory cessions from insurance companies shall be
accorded the best terms and conditions afforded by the existing
treaties.
Section 5. Effectivity. — This Decree shall take
effect immediately.
DONE in the City of Manila,
this 22nd day of December, in the year of Our Lord, Nineteen hundred
and seventy-seven.
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