AMENDING CERTAIN SECTIONS OF ACT NUMBERED TWENTY-FOUR HUNDRED AND TWENTY-SEVEN, OTHERWISE KNOWN AS THE INSURANCE ACT, AS AMENDED BY PRESIDENTIAL DECREE NO. 63

WHEREAS, it is the policy of the State to foster the
creation and growth of cooperatives as a means of attaining a more
equitable distribution of income and wealth;

WHEREAS, in line with this policy and in addition to the
privileges granted in Presidential Decree No. 175, dated April 14, 1973,
developmental incentives must be provided to broaden the cooperative
base and to enable the cooperatives to expand their activities in
coordination with the economic, social, and agrarian reforms of the
Government; and

WHEREAS, security and peace of mind should be provided to
the small farmers and low income group in the event of loss of life,
health and property;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and General
Order No. 1, dated September 22, 1972, as amended, and in order to
effect desired changes and reforms in the social, economic and political
structures of our society, do hereby amend certain sections of Act
Numbered Twenty-four hundred and twenty-seven, otherwise known as the
Insurance Act, as amended by Presidential Decree No. 63, dated November
20, 1972, by adding the following provisions:

SECTION 1. Section 200(B) 1 of the same Act, as amended, is
further amended by adding thereto the following:

“Provided, That this requirement shall not apply to
cooperatives undertaking assurance on the life, health, property and
oilier risks of its members and/or those of the individual members of
the member-societies. Investment of funds of insurance cooperatives
shall be under the supervision, direction and control of the Department
of Local Government and Community Development through the Bureau of
Cooperatives taking into consideration the declared investment,
monetary, credit and fiscal policies of the Government.”

SEC. 2. Section 189 of the same Act, as amended, is
amended by adding another paragraph immediately following the first
paragraph and to read as follows:

“The Insurance Commissioner shall, upon recommendation and
certification of the Department of Local Government and Community
Development through the Bureau of Cooperatives on the qualification of a
cooperative society which is a member of an insurance cooperative,
issue a certificate of authority to such cooperative society to act as
agent, general or commission or sub-agent, or broker for an insurance
cooperative of which it is a member, in the solicitation or procurement
of application for insurance. With respect to individual persons
applying for authority to act as such agent, sub-agent or broker of an
insurance cooperative the issuance of the certificate of authority shall
be lodged exclusively to the determination and discretion of the
Insurance Commissioner.”

SEC. 3. All laws, executive orders, rules and regulations
or parts thereof inconsistent with this Decree are hereby repealed
and/or modified accordingly.

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 22nd day of October, in the
year of Our Lord nineteen hundred and seventy-three.