PDIC & Consumer Act

Question 1

___________ is a government instrumentality created by virtue of Republic Act _____ to insure the deposits of all banks which are entitled to the benefits of insurance. The (answer sa first blank) is an attached agency of the Department of Finance.

Answer 1

1. PDIC; 3591

Question 2

1. ______________ have quicker access to their insured deposits in the event of bank closure since PDIC has the authority to pay insured deposits without netting out depositors’ loan obligations with the closed bank, and based on evidence of deposits and not on the closed bank’s records alone.
2. The law does away with the ___-day receivership period and allows PDIC to proceed directly to liquidation. The immediate assignment of encumbered assets to closed bank creditors, adoption of purchase of assets and assumption of liabilities as a mode of liquidation, and express prohibition on reopening of banks ordered closed by the Monetary Board of the Bangko Sentral ng Pilipinas help enhance recovery rate for creditors of closed banks.

Answer 2

1. Depositors
2. 90

Previously, when a bank was ordered closed by the Monetary Board, the Philippine Deposit Insurance Corporation (PDIC) would first act as a receiver for 90 days. During this time:

PDIC would assess whether the bank could be rehabilitated.

The bank’s operations were frozen, but liquidation couldn’t begin yet.

Creditors and depositors had to wait for the outcome of this evaluation.

⚡ Why Was It Removed?
Under RA 10846, the 90-day period was eliminated to allow immediate liquidation. Here’s why:

Purpose Benefit
🕒 Speed up claims Depositors get their insured deposits faster.
💸 Prevent asset dissipation Assets of the closed bank are preserved and liquidated before they lose value.
🚫 Avoid futile rehab attempts Most closed banks were beyond saving — delaying liquidation only prolonged uncertainty.
🔄 Enable seamless transition PDIC can shift from receivership to liquidation without procedural delays.

Question 3

Insurable Deposits under PDIC Law (Covered by PDIC Insurance)

Classification of Insured Deposits

By Deposit Type
1.
2.
3.
4.
5.
6.

By Deposit Account
1. Single Account
2. Joint Account
3. Account “By”, “In Trust For” or “For the Account of’ another person

By Currency
1. Philippine Peso
2. Foreign currencies considered as part of BSP’s international reserves

Answer 3

1. Savings Deposit
2. Special Savings
3. Foreign Currency Deposit
4. Certificate of Time Deposit
5. Demand/Checking Account
6. Negotiable Order of withdrawal

A Negotiable Order of Withdrawal (NOW) account is a type of interest-bearing deposit account that allows the account holder to write drafts (similar to checks) against the funds deposited. It’s a hybrid between a checking and savings account, primarily used in the United States.

Question 4

Maximum Deposit Insurance Coverage

PDIC shall pay deposit insurance on all valid deposits up to the Maximum Deposit Insurance Coverage of Php_________ per depositor of a closed bank. However. A depositor with single accounts and joint accounts may have insured deposits of up to Php____________.

Answer 4

500,000; 1,000,000

Question 5

1. Claims are filed during the claims settlement operations period, as announced in the Notice to Depositors published in national or local newspapers, or posted in the bank premises and conspicuous places within the locality, and in the PDIC website. Depositors have _____ years from PDIC’s takeover of the closed bank to file their deposit insurance claims.

Answer 5

1. two

Question 5

1. For purposes of computing the insured deposits, all obligations or loans of the depositor with the closed bank as of bank closure shall be __________ from the depositor’s total deposits with the said bank.
2. In case of joint account involving a juridical/artificial person and a natural person, the maximum insured deposit of P500,000 to such joint account shall be given to ________ person only.

Answer 5

1. deducted
2. juridical/artificial

Question 6

Who are required to file deposit insurance claims?
.1. Depositors with valid deposit accounts with balances of more than Php__________.
.2. Depositors who have outstanding obligations with the closed bank regardless of amount of deposits.
.3. Depositors with account balances of less than Php______ who have no updated addresses in the bank records.
.4. Depositors who maintain their accounts under the name of _______________, regardless of type of account and account balance.
.5. Depositors with accounts not eligible for early payment, regardless of type of account and account balance per advice of PDIC.

Answer 6

.1. 100,000
.3. 100,000
.4. business entities

📬 Meanwhile, Who Gets Early Payment? Not required to file deposit insurance claims?
1. Depositors with ₱100,000 or less
2. Complete and updated addresses
3. No loans with the closed bank
4. Personal accounts (not business entities)
These depositors get paid automatically via postal money order, no need to file claims — a convenience initiative for small savers 📨

Question 7

ACCOUNT NAME | Deposit in PHP | Insured Deposit of Rose Reyes
Rose Reyes | 100,000 | ???
Dante Reyes For the Account of Rose Reyes | 100,000 | ???
Kris Reyes In Trust For Rose Reyes | 100,000 | ???
Rose Reyes Store (Sole Proprietorship) | 700,000 |???
Total | 1,000,000 | ???

ACCOUNT NAME | Deposit in PHP | Insured Deposit of Rose Reyes
Rose Reyes or Dante Reyes | 500,000 | ???
Rose Reyes and Kris Reyes | 1,000,000 | ???
Rose Reyes and/or Divine Reyes | 1,000,000 | ???
Total | 2,500,000 | ???

ACCOUNT NAME | Deposit in PHP | Insured Deposit of Rose Reyes
All single accounts of Rose Reyes in BDO Branch 1 | 1,000,000 | ???
All joint accounts of Rose Reyes in BDO Branch 2 | 2,500,000 | ???
Total | 3,500,000 | ???

Answer 7

100,000
100,000
100,000
200,000
500k total

250,000
250,000
0
500k total

500,000
500,000
1M total

Question 8

.1. One of the following is not a function of the Philippine Deposit Insurance Corporation.
a. Co-regulator of banks
b. Deposit insurer
c. Engage in the lending of funds obtained from deposits
d. Receiver and liquidator of closed banks

.2. Insured deposit is an amount due to any bona fide depositor for legitimate deposits in an insured bank net of any obligation of the depositor to the insured bank as of the date of closure, but not to exceed ______________
a.P100k
b. P250k
c. P500k
d. P1M

.3. What specific risk to a bank does PDIC cover?
a. Bank closure ordered by the Monetary Board
b. Bank closure ordered by PDIC
c. Theft
d. Fire

.4. Juan dela Cruz maintains the following accounts with X Bank, Manila Branch:
.1. Account Name: Juan dela Cruz— savings account with a balance of P850k
.2. Account Name: Juan dela Cruz and Maria dela Cruz— savings account with a balance of P400k
.3. Juan dela Cruz or Pedro dela Cruz — time deposit for P1M.
How much is the total insured deposit of Juan dela Cruz?
a. P950k
b. P500k
c. P850k
d. P1M

.5. Period to file claim?
.6. Period to enforce claim?
.7. Period for the PDIC to settle claim

Answer 8

.1. C
Function of bank ni
.2. C
.3. A
.4. D
Max sa single/indiv is 500k
Max sa joint is 500k
500k ; 200k and 300k

.5. 2 years from actual takeover of the closed bank
.6. 2 years after the 2-year period to file claim
.7. Within 6 months from date off filing of claim

Question 9

6. The agency in charge with implementing the Consumer Act of the Philippines is:
   a. Department of Trade and Industry
   b. Department of Consumer Protection
   c. Department of Finance
   d. Department of Budget and Management
7. What word is required to be indicated on substances which are extremely flammable?
   a. Danger
   b. Caution
   c. Attention
   d. Warning
8. It is part of the label that is most likely to be displayed, presented, shown or examined under normal and customary conditions of display for retail or sail.
   a. Primary display panel
   b. Principal display panel
   c. Front display panel
   d. First display panel
9. What is the end goal of deceptive sales acts or practices?
   a. Induce a consumer to enter into sales or lease transaction of consumer product or service
   b. Control market prices to the advantage of sellers and disadvantage of consumers
   c. Deliver quantities or amounts less than what was initially upon
   d. Employ impossible and false therapeutic claims on medicine
10. A seller’s deceptive act or practice may only occur:
    a. Before the transaction
    b. During the transaction
    c. After the transaction
    d. Before, during, or after the transaction

Answer 9

6. A
7. A
8. B
9. A
10. D

Question 9

11. An unfair or unconscionable sales act or practice:
    a. Takes advantage of product scarcity, whether manmade or otherwise
    b. Takes advantage of a consumer’s ignorance or illiteracy
    c. Takes advantage of a consumer’s financial standing
    d. Takes advantage of the unreadability of a product’s packaging
12. Statement 1: Chain distribution plans or pyramid sales schemes shall not be employed in the sale of consumer products.
    Statement 2: DTI is prohibited from issuing to any business entity the authority to conduct any home solicitation sale of any consumer products or service.
    a. Only statement 1 is true
    b. Only Statement 2 is true
    c. Both statements are true
    d. Both statements are not true
13. Which of the following is not a prohibited representation in a home solicitation sale?
    a. the buyer has been specially selected
    b. a survey, test or research is being conducted
    c. the seller has specifically obtained a permit from the government
    d. the seller is making a special offer to a few persons only for a limited period of time
14. Which of the following is part of the minimum label requirements in consumer products?
    a. A translation in Filipino of any active ingredients
    b. Net quantity of contents
    c. Date of manufacture
    d. use for the product
15. Which of the following is not part of the minimum label requirements for a consumer products?
    a. Duly registered trademark
    b. Country of manufacture, if imported
    c. Patent registration number
    d. Address of the imported, if imported

Answer 9

11. B
12. A
13. C
14. B
15. C

Question 9

1. This is defined as the date satiated on the label of food, drug, cosmetic device or hazardous substance after which they are not expected to retain their claimed safety, efficacy and quality or potency and after which it is no longer permissible to sell them.
   a. Best before date
   b. Better before date
   c. Expiry date
   d. Manufacturing date
2. It is the identification of drugs and medicines by their scientifically and internationally recognized active ingredients.
   a. Brand name
   b. Generic name
   c. Scientific name
   d. Medical name
3. It means any substance which will cause on normal living tissue, allergy or photodynamic quality of hypersensitivity which becomes evident on reapplication of the same substance, to be designated as such by the implementing agency
   a. Muriatic acid
   b. Active substance
   c. Strong sensitizer
   d. Chemical reactant
4. It means any device, written, printed, affixed or attached to a consumer product or displayed in a consumer repair or service establishment for the purpose of indicating the retail price per unit or service.
   a. Price tag
   b. Label
   c. Package price
   d. Bar code
5. A special packaging
   a. contains all the information reasonably needed by consumer
   b. Is difficult for children to open
   c. Is made out of potentially hazardous materials
   d. Is biodegradable or oxo-biodegradable

Answer 9

1. C
2. B
3. C
4. A
5. B

Question 10

16. In addition to the minimum label requirements for consumer products, additional labeling requirements for cosmetics include all of the following except:
    a. expiration date
    b. whether or not it may be an irritant
    c. color or style of the cosmetic
    d. contra-indications
17. Statement 1: A food shall also be deemed mislabeled if it is offered for sale under the name of another food.
    Statement 2: A food shall also be deemed mislabeled if it bears or contains any artificial flavoring, artificial coloring, or chemical preservative and such is not indicated.
    a. Only statement 1 is true
    b. Only Statement 2 is true
    c. Both statements are true
    d. Both statements are not true
18. If a drug is for use by man and contains any quantity of cannabis, heroin, morphine, or opium, the label should contain:
    I. The quantity or proportion of such substance
    II. The statement “Warning - May be habit forming”
    III. Adequate directions for use.
    a. I and II only
    b. II and III only
    c. I and III only
    d. I, II, and III
19. For hazardous substance which is defined as highly toxic, which word should appear in the label:
    a. “Deadly”
    b. “Poison”
    c. “Corrosive”
    d. “Unsafe”
20. The statement “keep out of the reach of children” should be indicated in:
    a. articles not intended for use by children and at the same time, is not a banned hazardous substance
    b. articles not intended for use by children and at the same time, is a banned hazardous substance
    c. articles intended for use by children and at the same time, is not a banned hazardous substance
    d. articles intended for use by children and at the same time, is a banned hazardous substance

Answer 10

16. C
17. C
18. D
19. B
20. A

Question 11

The increased PDIC coverage from PHP 500,000 to PHP 1 million per depositor per bank will take effect on ___________. This change is part of the PDIC’s efforts to provide depositors with enhanced protection and to restore the value of deposit insurance after years of rising costs.

Answer 11

March 15, 2025