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(NAR) VOL. 11 NO.3 / JULY – SEP. 2000
[ IC CIRCULAR LETTER NO. 8-2000, July 12, 2000 ]
JUDICIAL BONDS
As a parallel move with that of the Supreme Court to stop the proliferation of spurious bail bonds and other judicial bonds, the following rules shall govern the issuance of judicial bonds:
1. Judicial bonds can only be issued by the head office or branches and district offices of insurance companies, duly registered with the Insurance Commission to the exclusion of others;
2. The insurance company issuing judicial bonds shall confirm every first ten (10) days of the following month, the bonds it had issued to a particular court copy furnished the Supreme Court and the Insurance Commission. However in the event that the court requests for a special or an urgent verification of a particular bond, the insurance company shall act upon it within three (3) working days from date of receipt and forward a copy to the Insurance Commission;
3. Penalties
a) For failure to submit the list of judicial bonds a company has issued for a particular month within ten (10) days of the following month, a penalty of P500.00 per day of delay;
b) For failure to act on the court's request within the (3) working days from receipt of the request, a penalty of P500.00 per day of delay; and
c) For failure to comply with any of the foregoing rules, a surety company cannot invoke the defense that the bond in question is a fake bond and hence shall be liable to pay its obligation under the bond.
The form to be used in the submission required under item No. 2 is attached (Available upon request at ONAR, U.P. Law Complex, Diliman, Quezon City).
This Circular Letter amends IC Circular Letter No. 24-93 and takes effect immediately.
Adopted: 12 July 2000
(SGD.) EDUARDO T. MALINIS
Insurance Commissioner