Insurance Basics and Agents Quiz

Insurance

• The insurance company is defined as any entity authorized to transact insurance business in the Philippines.
• The concept of insurance involves an agreement where one party promises to indemnify another against loss, damage, or liability for an unknown or contingent event.
• Transacting insurance business encompasses various activities, including proposing or making insurance contracts, acting as a surety, undertaking reinsurance business, and engaging in business activities equivalent to insurance business.

Insurance Agents & Brokers

• An insurance agent is someone who solicits or obtains insurance on behalf of an insurance company, or transmits applications for insurance policies.
• An insurance broker acts as an intermediary between an insured and an insurer, assisting in soliciting, negotiating, or procuring insurance contracts.

Reinsurance

• Reinsurance involves an insurer transferring a portion of its risk to another insurer, known as a reinsurer.
• Reinsurers are typically specialized entities that focus solely on reinsurance business.
• Reinsurance brokers facilitate reinsurance transactions by negotiating contracts and placing risks on behalf of insurance companies.

Investment Advisors

• Investment advisors provide advice on the value of securities and the advisability of trading them, for a specified advisory fee.
• Investment advisors may also analyze capital markets and issue reports, but certain entities, such as banks, journalists, and certain professionals, are excluded from this definition.

Moneychangers & Remittance Companies

• Moneychangers engage in the business of buying and selling foreign currency notes.
• Money payment, remittance, and transfer companies offer services to pay, remit, or transfer money on behalf of individuals or entities.

Customers

• Any person or entity that maintains an account or conducts transactions with a covered institution is considered a customer.
• This also includes beneficiaries of trusts, investment funds, pension funds, and individuals whose assets are managed by asset managers.
• Insurance policyholders, both actual and prospective, are also considered customers.

Property

• "Property" encompasses any item of value, regardless of whether it is real or personal, tangible or intangible.
• This includes all interests, benefits, privileges, claims, and rights related to property.

Securities Regulation Code

• The Securities Regulation Code of 2000 defines a range of illegal activities involving securities.
• These activities include the sale or distribution of securities without proper registration, the offering of pre-need plans that do not comply with SEC regulations, and violating reporting requirements by securities issuers.
• The Code also prohibits the manipulation of security prices through various tactics such as creating false trading activity, spreading misleading information, and executing specific types of trades.

Covered Transactions

• The Anti-Money Laundering Act requires covered institutions to report certain transactions, known as covered transactions, and suspicious transactions.
• Covered transactions must be reported within five working days of occurrence, unless a longer period is prescribed by the supervising authority.
• Institutions are required to report covered transactions in electronic form using specific reporting forms prescribed by the AMLC.

Transitory Provisions

• Existing freeze orders issued by the AMLC remain in force for 30 days after the Anti-Money Laundering Act's effectivity, unless extended by the Court of Appeals.
• Existing freeze orders extended by the Court of Appeals remain effective unless dissolved by the same court.