Two Excelife Life Insurance Policies (Effectivity Years 1996 and 2001)

Insurer: Philamlife
Insured: Conrado P. Gorospe
Beneficiaries: His spouse and his four daughters
Trustee: His sister

1. All provisions in this Policy are in accordance with the requirements of the
Insurance Code
It is stated on Page 1 of each of the two policies.
Since the Insurance Code took effect on December 18, 1974, the Policy shall not only state
the Insurance Code because, by virtue of the same Code, the Insurance Commissioner has
power to issue rules and regulations, and circulars. This power is reasonably in view of the
changing times and constant development of technology, and higher mortality rates. One circular
related to such insurance contract is the Insurance Memorandum No. 6-2006, ADOPTION OF
RISK-BASED CAPITAL FRAMEWORK FOR THE PHILIPPINE LIFE INSURANCE INDUSTRY.
Another circular is the INSURANCE MEMORANDUM NO. 1-1993, RULES AND PROCEDURE
GOVERNING ADMINISTRATIVE CASES BEFORE THE INSURANCE COMMISSION.
It could be better if the subject provision, and perhaps all other insurance contracts, include
current or recent rules and regulations so as to reprise the insured better. And if they know
better the contracts they enter into, there may be lesser suits, and court or quasi-court dockets
would be less clogged.
What is even peculiar in relation to this is that, the website of the Insurance Commission
does not post in its website1 the latest amendment to the Insurance Code which is Republic Act No.
10607, effective in 2013, which was three years ago. What is still available is the old Code
amended by laws prior to said Act. This is contrary to the very purpose of insurance law which is to
protect the insured.

2. No countersignature of the insured or owner in the rider.

It is contrary to Section 50 of the Insurance Code, as amended. Only the President & Chief
Executive Officer has a signature on Page 3 of the policies. Even the space for the signature of the
Secretary is not signed. There is no sign whatsoever showing that Mr. Gorospe agreed to the
riders contents. This already contradicts the aforesaid provision on Page 1 of the policies:
All provisions in this Policy are in accordance with the requirements of the Insurance Code.

1 http://www.insurance.gov.ph/htm/_services2.asp?topic=i. Accessed last December 1, 2016.

Section 5 prescribes that, unless applied for by the insured or owner, any rider, clause,
warranty or endorsement issued after the original policy shall be countersigned by the insured or
owner, which countersignature shall be taken as his agreement to the contents of such rider,
clause, warranty or endorsement.

3. We are not bound by any assignment of this Policy if is not recorded at our Home
Office. We cannot be responsible for the validity or effect of any assignment.
It is stated on Page 4 of the policies, at the Assignment section.
The provision is couched in the negative manner which seems to discourage the insured
from assigning his rights and interests over the policy. This runs counter to one principle in
insurance law that owner of the policy has xxx the power to assign the policy (under certain
conditions). It is even provided for by Section 184 of the Insurance Code that a life insurance may
be passed by transfer, e.g. assignment to any person.
It could be better if the provision states the owner of this Policy may assign the same only if
recorded at our Home Office.