Insurance Commission Warns vs. Unsafe and Unsound Insurance Practices

Insurance Commission Warns vs. Unsafe and Unsound Insurance Practices

lnsurance companies engaged in "unsafe" and "unsound" practices will be probed, or else, fined, according to the rules issued by the lnsurance Commission.

lnsurance Commissioner Dennis B. Funa signed Circular Letter No. 2017-59 defining the term "unsafe business acts or practices" of insurance companies, reinsurance companies, mutual benefit associations, intermediaries, and adjustment companies.

The new regulation was issued after reviewing the unimplemented provision of the lnsurance Code which empowers the lnsurance Commission to penalize insurance companies, their directors, officers and/or agents for conducting business in an unsafe or unsound manner.

"The broad definition under the existing law could easily be challenged if the Commission would not clarify the deflnitions of prohibited acts that constitute violations of the law. A regulation clearly defining the same was issued to put more teeth in the regulation of the insurance industry," Commissioner Funa said.

As defined under the new regulation, unfair business practices are broadly classifiedinto: misrepresentation to the public, unfair discrimination, unfair claims management, misrepresentation in insurance applications or claims, failure to effectively control and supervise its agents, and failure to respond to regulatory inquiries.

Commissioner Funa emphasized that, "The definition provided under the said Circular Letter only covers those arising from the contractual relationship of these entities with the insuring public. lt does not cover business practices likely to cause insolvency or substantial dissipation of assets or earnings of a covered entity or likely to weaken its financial condition."

Other practices that may be considered unsafe or unsound are:.

1. Misrepresentation relating to terms and conditions of an insurance policy;.

2. Misleading or making false representation or incomplete comparison of policiesfor the purpose of inducing or tending to induce a person to lapse, forfeit, orsurrender his said insurance;.

3. Failing to disclose all applicable charges;. Advertising an insurance product which has not been approved by the Commission in a misleading manner;.

4. Failing to promptly acknowledge receipt of claims, to adopt and implementreasonable standards for prompt investigation of an insurance claim;.

5. Making any discrimination against a person solely because of his/her race;

And 6. Failing to maintain reasonable standards of supervision and control over its insurance agents, and by such reason, an agent committed or was permitted to commit an act or omission which is prejudicial to the insuring public.

The penalties that may be imposed against any person found guilty in engaging in unsafe business practices will be ordered to cease and desist from engaging in such practices and to pay a fine ranging from P10,000 to P200,000.

(Reprinted from the Insurance Commission's website)

4 Things To Consider Before Buying Your First Home

4 Things To Consider Before Buying Your First Home

To own your very first house is like a dream come true for most. Signaling independence and success, affording your own property, however, bears a lot of deliberations. As this purchase entails financial risks, you must be fully determined and decided of the choice that you will make. To help you on your contemplations, here are the four things you should consider first before getting that lot.

1)    Location

Exactly how far is this new home from your work, and the places you frequently need to go to? The location is a very significant factor before permanently settling in.

2)    Price

Does the total cost of your home fit in your allocated budget? The purchase must not be detrimental to your savings. Make sure you have cash left for immediate renovations or abrupt payments.

3)    Environment

The atmosphere of the new locality should also be taken into account. Remember, intend to stay at your home for a long time, if not permanently. Look into the neighborhood and the potential people you will encounter. Familiarize yourself, and decide on whether you really want to live in the vicinity.

4)    Insurance

You worked so hard for this dream house. Now that the property is yours, you must safeguard it at all times, together with your other afforded belongings. Get in contact with your insurance provider to make sure that you get to acquire coverage for your home. Get a quote for home insurance now and contact FGen at (02) 706 3959.



To come home and realize that your wallet’s been stolen is a shocking and disappointing event. To arrive at the parking lot and not find your vehicle, however, makes losing one's wallet a negligible incident. Losing one's car -- or experiencing car theft -- would leave you shocked, dumbfounded, and at a loss.

Nobody wants to go through that, or even through all the lengthy talk with management together with the many CCTV footages to review.  To become victim of carnapping is traumatic. Worse, your vehicle might even be used by the thief for identity blurring or for illegal selling.

What can you do to prevent it?


Being equipped with a warning alarm is the quickest way to ensure the safety of your parked vehicle. As alarms are triggered by force, carnappers will avoid approaching your vehicle. The blaring sounds will attract people nearby, and their attempt to carnap immediately renders as unsuccessful.


Even if your vehicle’s tinted, your valuables, such as laptops or cellphones, should not be left inside your parked car. Majority of carnappers check what belongings can also be stolen.


Make sure to leave your vehicle at a place where it is visible to everyone, or at least a lot of people. Increased visibility decreases the chance of carnappers forcing a break-in. Having security guards or parking personnel around is a huge help for your car’s safety.


Determined robbers and carnappers will not let anything get in their way. As a final solution, contact us and avail of our motor car insurance for your vehicle. Get professionally assured by getting insured.

Contact FGen at  (02) 706 3969 for details.  

Roadtrip Ideas For Valentine's Day 2018

Roadtrip Ideas For Valentine's Day 2018

With the Day of Love merely weeks away, it is best to plan and embark on a romantic escapade with your significant other. However, the 14th of February is a global celebration -- everybody is outside, commemorating the event with surprises and Valentine sprees. People in the metro are busy and occupied booking flower deliveries and dinner buffets. The malls, the fancy restaurants, even the airports, are crowded. 

How are you supposed to relish the day of intimacy with your loved one? If you are coming from Manila, check out our selection of destination picks for couples this Valentine’s Day. 

1. Vigan, Ilocos Sur
Known for its cobblestone streets and its intact classical structures, the city of Vigan is perfect for lovers who are into reminiscence. An icon minutes away from the capital, the Bantay Bell Tower is a certified must-see. The belfry was a strategic location for Silang’s troops as it provides a clear, wide view of Vigan and Bantay. Together with this amulet of history, you can take a trip down memory lane with the Spanish feel of Calle Crisologo. A famous historical walking site, the Calle, also once trudged upon by the star-crossed lovers and heroes Gabriela and Diego Silang, is filled with restaurants and souvenir shops that will definitely give you and your lover a historical and dreamy experience. 

(Photos courtesy of: / ) 

(Photos courtesy of: / ) 

2. Rizal Province

For the daring and the fans of scenic landscape, the Masungi Georeserve, located in Baras, Rizal, is a great Valentine’s bonding. A trail that approximately takes 3-4 hours, the reserve is characterized by panoramic hanging platforms amidst natural rock formations. Most famous of these platforms is the Supot, a web-style viewing pulpit overlooking Laguna Bay. The Bayawak, on the other hand, is a bridge resting on a rock, where tourists can take a break from all the exhaustion brought by the trail. It is also a good sight in taking couple selfies and capturing Instagram-worthy photos of your loved one. Be sure, however, to book at least one week in advance, as visitations in Masungi are for private guests via requests. 

(Photos courtesy of

(Photos courtesy of

3) Subic, Zambales

Home to the historical military facilities of the United States, Subic is a definite must-visit for all roadtrips. Offering the only tiger expedition in the country, it houses Zoobic Safari, a 25 hectare animal park where you can have the wondrous chance of getting in touch with the canine cats as an adventure. Go on a wildlife trip with your loved one, but if you’re hesitant in daring the tigers, you can always channel the sea. The municipality also offers ocean shows involving dolphins and whales, where you can either pet them, or swim with them.

(Photo courtesy of 

(Photo courtesy of 


4)  Lucban, Quezon

Locally famous as an annual site of Pahiyas, a festival enamored with colorful kiping, you and your partner surely can’t miss Lucban. Located at the foot of Mount Banahaw in Quezon, not only is Lucban known for its fiesta and its pansit. The municipality is now becoming more popular because of its religious site that is unceasingly attracting pilgrims - Kamay ni Hesus. A shrine sought to be visited by many, Kamay ni Hesus is believed to have miraculous capabilities. The sanctuary is perfect to reflect and rekindle your faith with the Lord, as all relationships, especially to the married, are guided by the Highest. 

(Photo courtesy of   

(Photo courtesy of   

This Valentine’s Day, it doesn’t hurt to go out of the usual and spend extraordinary time to bond with your significant other. Extraordinary doesn’t necessarily mean grand, so if you’re on a tight budget, just pack a few bags and gas up to hit the road. In case you encounter difficulties at the destination, or even with your vehicle, it is best to ensure your getaway beforehand. Contact FGen thru (02) 706 3969 for details on travel and car insurance.