|
Rule
16. The Trust Fund
16.1.
To guarantee the delivery of Benefits such as monetary consideration,
cost of services rendered or property delivered, deposits shall be made by the
issuer into a Trust Fund to be established for each type of plan in accordance
with the rates used in the actuarial studies submitted under Rule 4.1, par. 7 (i)
(C).
16.2.
The minimum limits of the deposit contribution to the Trust Fund shall be
45% of the amount collected for life plans and 51% of the total amount collected
for other plans unless a higher deposit contribution is determined by the
actuary and duly approved by the Commission.
16.3.
In case of installment payments, the minimum limits, unless the
actuary
and the Commission determines otherwise, of the deposit contributions to the
Trust Fund shall be in accordance with the following schedule:
| Payment
Received |
Life Plan |
Other Plan |
|
Collection of the 1st
20% of Contract Price
|
5%
|
5%
|
|
Collection of the 2nd 20%
of Contract Price
|
10%
|
10%
|
|
Collection of the 3rd 20% of Contract Price
|
70%
|
80%
|
|
Collection of the 4th 20% of Contract Price
|
70%
|
80%
|
|
Collection of the 5th 20%
of Contract Price
|
70%
|
80%
|
16.4.
No withdrawal shall be made from the Trust Fund except for paying the
Benefits such as monetary consideration, the cost of services rendered or
property delivered, trust fees, bank charges and investment expenses in the
operation of the Trust Fund, termination values payable to the Planholders,
annuities, contributions of cancelled plans to the fund and taxes on Trust
Funds. Furthermore, only reasonable withdrawals for minor repairs and costs of
ordinary maintenance of trust fund assets shall be allowed.
16.5.
The Trust Fund shall have the following conditions:
a.)
It must be established independently with the trust department of a trust
company, bank or investment house doing business in the Philippines. The Trust
Agreement shall be submitted to the
Commission for approval before execution and shall contain the following salient
provisions among others:
i.)
The manner in which the Trust Fund is to be
operated;
ii.)
Investment powers of the trustee with
respect to trust deposits, including the character and kind of investment;
iii.
Auditing
and settlement of accounts of the trustee with respect to the fund;
iv.)
Basis
upon which the fund may be terminated;
v. )
Provisions for withdrawal of the
fund;
vi.)
That the trustee shall submit to the power of the Commission to examine and
verify the trust fund;
vii.)
An
undertaking by the Trustee that it shall abide by the rules and regulations of the Commission with respect to the Trust
Fund; and
viii.)
An undertaking by the Trustee that it
shall submit such other data or information as may be prescribed by the
Commission.
Back
Go Top Next
|
