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(NAR) VOL. 25 NO. 3 / JULY - SEPTEMBER 2014

[ IC CIRCULAR LETTER NO. 2014-40, September 12, 2014 ]

COMPULSORY COVERAGE OF INSURANCE AGENTS IN THE SOCIAL SECURITY SYSTEM (SSS)



Adopted: 12 September 2014
Date Filed: 18 September 2014

Section 9-A of Republic Act No. 1161, as amended, (The Social Security Law) requires the compulsory coverage of self-employed persons in the Social Security System (SSS), to wit.

“Section 9-A, Compulsory coverage of the Self-employed. Coverage in the SSS shall be compulsory upon self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe, including but not limited to the following:

1. All self-employed professionals;
xxx xxx xxx”

To implement the above-mentioned provision, the SSS issued Circular No. 195-T dated 26 November 1979. Under the said Circular, self-employed insurance agents registered with the Insurance Commission, who are not over 60 years of age, shall be subject to compulsory SSS coverage. For reference, a copy of SSS Circular No. 195-T is hereto attached as Annex “A”*.

As clarified by the SSS in a letter dated August 26, 2014, a copy of which is hereto attached as Annex “B”, the term self-employed insurance agents refers to those who are considered as independent contractors and does not cover those who are directly employed by insurance companies.

Pursuant to the powers of this Commission under Section 307 of the Insurance Code, as amended, to regulate the profession of insurance agents and enjoin their compliance with various laws and regulatory rules promulgated by the government, it is hereby required that all qualified self-employed insurance agents should register with the SSS.

Effective January 01, 2015, all applications for new and renewal of licenses must indicate therein the social security number of the applicant upon the filing of the application. Any application which fails to indicate the SSS number will not be accepted by the Commission.

This Circular Letter shall supplement IC Circular Letter No. 12-2013 dated April 19, 2013 insofar as its application to insurance agents is concerned.

For strict compliance.

(SGD) EMMANUEL F. DOOC
Insurance Commissioner

* Text Available at the Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.

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