Rule 15. Registration of Dealers, General Agents and Salesmen of Pre-Need Plans

15.1.  Any issuer selling its own Pre-Need Plans shall be deemed a dealer in securities and shall be required to be registered as such and comply with all the provisions hereof; provided that the issuer selling different types of Pre-Need Plans shall be required to be registered as dealer only once for the different types of plans.

15.2.  The issuer shall post a surety bond from a bonding company acceptable to the Commission in the amount of Three Hundred Thousand Pesos (P300,000.00) in favor of the Government of the Philippines and conditioned upon faithful compliance with the provisions of the Code and these Rules.  The Commission may require an additional surety bond depending on the volume of sales of the issuer.

15.3.  Processing of new applications for registration and license as Dealer shall be completed within twenty (20) working days from receipt of complete application and payment of fees, while applications for renewals shall be completed within eight (8) working days from receipt of complete application and payment of  fees.

15.4.  If the issuer contracts general agents or agencies to sell its pre-need plans, such general agents/agencies shall be required to comply with paid-up capital requirement for broker of securities and shall be duly registered as general agent/s or brokers of Pre-Need Plans by the Commission.  General agents or agencies shall post a bond in the amount of One Hundred Thousand Pesos (P100,000.00).

15.5.  Processing of new applications for registration and license as general agent or broker of  Pre-Need Plans as well as renewals thereof shall be completed within eight (8) working days from receipt of complete application and payment of fees.

15.6.  No salesman shall be allowed to sell or offer to sell Pre-Need Plans under this Rule, without being registered as such by the Commission.  Registration shall be issued upon approval of the registration application and payment of the prescribed fee.

15.7.  Registration shall not be approved unless the issuer or general agent engaging the salesman’s services certifies under oath that the salesman has been duly trained pursuant to a training program approved by the Commission and has successfully passed an examination given by the issuer or general agent and approved by the Commission or the Federation and/or has sold at least P10,000.00 worth of plans; provided, however, that Pre-Need Plans sold during the apprenticeship period shall be co-signed by a duly registered salesman.

15.8.  Registration shall cease upon the termination of  engagement of the services of such salesman with the issuer or general agent, provided that it may be renewed for the ensuing year in accordance with this Rule.

15.9.  Processing of applications for registration and license as a salesman as well as renewals thereof shall be completed within eight (8) working days from receipt of application and payment of fees.

15.10. Every registration under this Rule shall expire on the thirty-first day of December in each year, but a renewal for the succeeding year shall be issued upon application and payment of the fee, and furnishing such information specifically required by the Commission.  Application for renewals shall be made not less than thirty (30) days nor more than sixty (60) days before the first day of the ensuing year, otherwise, they shall be treated as original applications.

15.11. The Commission shall charge a fee for every original application and every renewal thereof.

15.12.  Any Pre-Need Company selling its own plans who fails to file an application for registration or renewal as a dealer in Pre-Need Plans or any general agent who fails to apply for registration or renewal as a broker of Pre-Need Plans within the period required by these rules or any salesman who sells plans without a valid license shall pay the appropriate penalty therefor.

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