It has come to the attention of this Commission that some insurance companies doing business in the Philippines have been incorporating the Claims Control Clause in their reinsurance treaty agreement and/or facultative reinsurance.

As said clause is inconsistent with the provisions of Section 243 of the Insurance Code prescribing the period within which a claim for loss or damage should be paid, it is hereby required that, henceforth, all new/renewal reinsurance transactions, whether by way of treaty or facultative reinsurance shall not be subject to the said clause.

Strict compliance with the above requirement is enjoined.

Adopted: 9 Oct. 1996

(SGD.) EDUARDO T. MALINIS
Insurance Commissioner