THE Insurance Commission (IC) once again extended regulatory relief on admittance of Premiums Receivable account for all non-life and professional reinsurance companies as the country’s Covid-19 cases continue to remain at 4-digit levels.
Insurance Commissioner Dennis B. Funa signed Circular Letter 2021-43 adjusting the basis for admitting the “Premiums Receivable” account for all these companies from 90 days to 180 days from the date of issuance of policies for reporting year 2021.
Funa emphasized the need to further extend the said regulatory relief previously imposed last year as non-life insurance companies continue to provide relief to the insuring public by extending the grace period and allowing installment payments on insurance premiums up to this year.
“Extending the grace period and allowing installment arrangements may result to non-admitted Premiums Receivable, which would have an unfavorable impact on the net worth of the insurance companies,” Funa said in the copy of the circular letter dated July 11.
In the same circular letter, he said undue installment premiums shall be considered admitted assets as long as the issuance of the policy is within 180 days from the cut-off date.