No person shall act as an insurance agent or as an insurance broker in the solicitation or procurement of applications for insurance, or receive for services in obtaining insurance, any commission or other compensation from any insurance company doing business in the Philippines, or any agent thereof, without first procuring a license to act from the Commissioner, which must be renewed annually on the first day of January, or within six months thereafter.
No insurance company shall transact any insurance business in the
until after it shall have obtained a certificate of authority for that purpose from the Commissioner upon application therefore and payment by the company concerned of the fees hereinafter prescribed. Philippines
Art. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.
For the life insurance company to have an obligation to you, your life insurance contract needs to be governed by the law in where they are executed.
In this case, your life insurance contract is governed by the Philippine laws, so you need to sign in the Philippines – or it can be rendered void.
Meaning, no benefits! It’s as if you didn’t sign anything.
Also, going back to the Insurance Code of the Philippines, about your life insurance advisor’s license:
Such license shall be issued by the Commissioner only upon the written application of the person desiring it, such application if for a license to act as insurance agent, being approved and countersigned by the company such person desires to represent, and shall be upon a form prescribed by the Commissioner giving such information as he may require, and upon payment of the corresponding fee hereinafter prescribed.
Your financial advisor’s license to act as an insurance agent:
– needs to be approved by the company (doing business in the Philippines) and,
– is issued by the Insurance Commissioner (of the Philippines)
Your financial advisor’s license is only valid in the Philippines.
– Talk to a licensed financial advisor/life insurance agent.
– Make sure he’s from a life insurance company authorized by the Insurance Commission.
– And only sign in the Philippines.
(A big thank you to my friend, Clarissa De Guia Ramos, CPA, for sharing her knowledge with me on this topic!)
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