Practice question
A corporation and its president jointly hold a legitimate PHP900,000 deposit in a bank closing in 2026. They seek PHP900,000 insurance for each merely because both names appear. No other accounts or adjustments apply. What follows?
- Each automatically gets PHP900,000.
- The president automatically gets all coverage personally.
- The account is necessarily fictitious because a corporation is named.
- The MDIC is multiplied by the number of authorized signatures.
- The amount is not doubled; the mixed juridical-natural account is presumed to belong entirely to the corporation for this coverage rule.
Legal references
- RA 11840, Section 4 amending PDIC Charter Section 5(k): https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/95626
- PDIC official 2025 guidance, PHP1 million coverage effective March 15, 2025: https://www.pdic.gov.ph/files/ccd/PR-038-25%20New%20maximum%20deposit%20insurance%20coverage%20of%20P1%20Million%20takes%20effect%20on%20March%2015.pdf
- PDIC, Understanding Deposit Insurance brochure: https://www.pdic.gov.ph/files/Understanding%20Deposit%20Insurance%20Brochure.pdf
Answer this question in flashcards to review your response and continue practicing.