After reading Licensing of Sales Counselors and General Agents, read also What are the Pre-Requisites to Incorporation of Pre-Need Companies?
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Sales counselors are persons who are engaged in the sale of pre-need plans upon the authority of the pre-need company
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No sales counselor shall be allowed to sell pre-need plans without being licensed by the Insurance Commission
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An application for the issuance or renewal of a license to act as sales counselor may be denied
Sales counselors refer to natural persons who are engaged in the sale of, or offer to sell, or counsel of prospective planholders for the purpose of selling, whether or not on commission basis, pre-need plans upon the authority of the pre-need company.
What are the requirements before one may be considered a sales counselor?
The law says:
No sales counselor shall be allowed to solicit, sell or offer to sell pre-need plans under Pre-need Code of the Philippines without being licensed as such by the Insurance Commission (Commission). No license shall be issued unless the following qualifications have been complied with:
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The applicant must be of good moral character and must not have been convicted of any crime involving moral turpitude;
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The applicant has undergone a training program approved by the Commission and such fact has been certified under oath by a duly authorized representative of a pre-need company; and
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The applicant has passed a written examination administered by the Commission provided that the administration of the examination may be delegated to an independent organization under the supervision of the Commission.
Such license shall automatically expire every thirtieth (30th) day of June or such date of every year as may be fixed by the Commission and may be accordingly renewed.
What are the instances where the application for the issuance or renewal of a license to act as sales counselor may be denied?
The law says:
An application for the issuance or renewal of a license to act as sales counselor may be denied, or such license, if already issued, shall be suspended or revoked based on the following grounds or instances:
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Materially misrepresented statements in the application requirements;
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Obtained or attempted to obtain a license by fraud or misrepresentation;
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Materially misrepresented the terms and conditions of pre-need plan which he sold or offered to sell;
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Solicited, sold or attempted to solicit or sell a pre-need plan by means of false or misleading representation and other fraudulent means;
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Terminated for cause from another pre-need company;
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Similar grounds for the disqualification of directors and officers of pre-need companies;
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Willfully allowing the use of one’s license by a non – licensed or barred individual; and
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Analogous circumstances.
However, if the issuer should contract the services of a general agent to undertake the sales of its plans, such general agent shall be required to be licensed as such with the Commission, in accordance with the requirements imposed by the Commission.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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