REPUBLIC ACT NO. 6444 - AN ACT
AMENDING SECTION ONE HUNDRED NINETY-TWO-A OF THE INSURANCE ACT SO AS TO
MAKE ALL ADJUSTERS OF INSURANCE CLAIMS SUBJECT TO THE SUPERVISION OF
THE INSURANCE COMMISSIONER
Section one hundred ninety-two-A of the Insurance Act, as amended, is
hereby further amended to read as follows:
"Sec. 192-A. (a) No person, firm, association or
corporation shall act as an adjuster, as hereinafter defined, unless
authorized so to act by virtue of a license issued or renewed by the
Insurance Commissioner pursuant to the provisions of this section:
provided, that in the case of a natural person he must be a Filipino
citizen and in the case of a firm, association or corporation, at least
sixty per centum of its capital must be owned by citizens of the
Philippines, but those already acting as adjusters at the time of the
approval of this Act not having this qualification shall, if otherwise
qualified, be authorized to continue in business until their death in
case of natural persons, or up to the expiration of their term in case
of juridical persons, but not more than ten years after the effectivity
of this Act. However, nothing contained this Act shall in any way
impair or abridge whatever rights may be granted to citizens and
juridical entities of the United States of America under the agreement
between the Republic of the Philippines and the United States of
America signed July fourth, nineteen hundred and forty-six, as revised
on September sixth, nineteen hundred and fifty-five.
"(b) An adjuster may be independent adjuster or a
(1) The term "independent adjuster" means any person,
firm, association or corporation which, for money, commission or any
other thing of value acts for or on behalf of an insurer in the
investigation and adjusting of claims under all kinds of insurance
contracts or policies issued by such insurer, or which perform such
duties required by such insurer as are incidental to such claims.
(2) The term "public adjuster" means any person,
firm, association or corporation, which, for money, commission or any
other thing of value, acts on behalf of an insured in negotiating for,
or effecting the settlement of a claim or claims of the said insured
arising under all kinds of insurance contracts or policies, or which
advertises for, or solicits employment as an adjuster of such claims.
"(c) Adjusters shall be licensed as independent
adjusters or public adjusters. No adjuster shall act on behalf of an
insurer unless said adjuster is licensed as an independent adjuster.
And no adjuster shall act on behalf of an insured unless said adjuster
is licensed as a public adjuster: provided, however, that when a firm
or person has been licensed as public adjuster, he shall not be granted
another license as independent adjuster, and vice-versa.
"d) Before any such license or any renewal thereof
may be issued by the Insurance Commissioner there shall be filed by the
person interested a written application in the form or forms prescribed
by the Insurance Commissioner which shall contain such information as
he may require.
"e) Every adjuster's license issued hereunder shall
expire on the thirtieth of June of the year following the issuing of
such license and may be renewed within sixty days before its expiration
"For issuing an independent adjuster's license, or a public adjuster's
license, the Insurance Commissioner shall collect and receive a fee of
fifty pesos: provided, that for renewing any such license, the fee
shall be twenty-five pesos.
"(f) Nothing contained in this section shall apply to
any duly licensed attorney-at-law who acts or aids in adjusting
insurance claims as an incident to the practice of his profession and
who does not advertise himself as an adjuster.
"(g) The Insurance Commissioner may suspend or revoke
any adjuster's license if, after giving notice and hearing to the
adjuster concerned, the Insurance Commissioner determines that the said
adjuster (1) has violated any provisions of the insurance law and of
the circulars, rulings and instructions of the Office of the Insurance
Commissioner or has violated any law in the course of his dealings as
an adjuster; or (2) has made a material misstatement in the application
for such license; or (3) has been guilty of fraudulent or dishonest
practices or (4) has demonstrated his incompetency or untrustworthiness
to act as an adjuster, or who in any manner connives or compromises
with carnappers of motor vehicles covered by insurance against theft;
(5) has made patently unjust valuation of loss; or (6) has failed to
make a report of the adjustment he proposed not more than sixty days
from the date of the filing of the claim by the insured with the
insurer, unless prevented not to do so by reasons beyond his control;
or (7) has refused to allow an examination to be made into his affairs
or method of doing business as hereinafter provided.
"(h) Every adjuster shall submit to the Office of the
Insurance Commissioner a quarterly report of all losses which are the
subject of adjustment effected by him during each month in the form
prescribed by the Insurance Commissioner. The report shall be filed
within one month after the end of each quarter.
"(i) Every adjuster shall keep his books, records,
reports, accounts, and vouchers in such manner that the Insurance
Commissioner or his duly authorized representatives may readily verify
the quarterly reports of the said adjuster and ascertain whether the
said adjuster had complied with the provisions of law or regulations
obligatory upon it or whether the method of doing business of the said
adjuster has been fair, just and honest.
"(j) The Insurance Commissioner shall, at least once
a year and whenever he considers the public interest so demands, cause
an examination to be made into the affairs and method of doing business
of every adjuster."
Sec. 2. The Insurance Commissioner may prescribe
rules and regulations and issue instructions and orders to carry out
the purposes of this Act.
Sec. 3. Any violation of any provision of this Act
shall be punished by a fine of not more than five hundred pesos or by
imprisonment not exceeding five months or by both such fine and
imprisonment in the discretion of the court: provided, that, in case of
a firm, association or corporation, the said penalty shall be imposed
upon the president, manager, managing director, director or person in
charge of its business responsible for the violation.
Sec. 4. This Act shall take effect upon its
Approved: June 17, 1972