The Insurance Commission (IC) has warned that it will continue to prosecute complaints against erring insurance agents, especially those accused of misappropriating funds held in a fiduciary capacity, even if such complaints were subsequently withdrawn as a result of a compromise agreement.
Insurance Commissioner Emmanuel F. Dooc has issued Circular Letter 2015-45 expanding the jurisdiction of the IC on complaints filed against insurance agents subsequently withdrawn due to a settlement or compromise between the private complainant and the insurance agent.
The circular amends Circular Letter 17-2006 to provide that complaints against erring insurance agents may still be pursued by the IC, despite any agreement to the contrary between the private complainant and the insurance agent in their compromise agreements.
“In the event that a complaint filed at the company level by a policy owner against an erring agent is terminated by virtue of a settlement/compromise between the policy owner and the agent, the settlement/compromise shall be without prejudice to: a) the right of the company to refer the matter to the IC, through the Licensing Division, for appropriate action under this circular; or b) the right of the IC to assume jurisdiction over the complaint motu proprio,” the amendment said.
To enforce the amendment, Dooc reiterated the requirement for all insurance companies to furnish the IC with a list of both active and inactive agents who may have been found guilty of, or have pending complaints filed against them either at the company level, or before any administrative body or court, for such willful violation of the Insurance Code, fraudulent practices, or misappropriation of money held in a fiduciary capacity.
Dooc said the new circular was issued to maintain the integrity and trustworthiness of insurance intermediaries who are trusted by the insuring public to protect their interests, amid the many cases against insurance agents subsequently withdrawn by the complainant as a result of settlement or compromise agreements.
