The authorization to extend the Order to the Philippine which was approved y the Supreme Board of Directors on January 9, 1905, precluded the Knights of Columbus insurance program. It was explicit in the provision that an association, that is non-insurance, Council would be established in Manila. The great distance between New Haven and Manila and their different currencies, it was believed, could trigger real insurance hazards.
The suppression of the insurance status from the local Order did not hurt its prewar membership, which comprised well-healed Catholic gentlemen from the social and economic aristocracy. For these so-called Caballeros de Colon, the urgency of the protective coverage of the KC insurance system did not exist.
At the peak of the postwar KC recruitment campaign, however, the composition of the local membership was changed drastically. Through the influence of Father Willmann, many Catholic men from the lower income groups of society were encouraged to join the postwar membership of the local Order. The need for a protection plan which only an insurance program could guarantee, was deemed imperative for the new recruits, as it was for the New Haven Knights of Columbus organized by Father McGivney. Unfortunately, an attempt by the Supreme Council to extend insurance benefits to the local membership encountered, and was foiled by, unfavorable “Philippine government policy.”
On August 1, 1958, the Knights of Columbus Fraternal Association of the Philippines was incorporated and registered with the Securities and Exchange Commission (SEC). Although merely a business affiliate and not a part of KC-Philippines, the insurance association was granted permission to use the name “Knights of Columbus” by the Supreme Council, “since the entity would provide fraternal insurance to the members in a country where it had a problem introducing their insurance system.”
September 9, 1958, KCFAPI, having obtained the necessary license from the office of the Insurance Commissioner, became operative. Its initial capital of P32,000 represented the total contributions of 64 founder members, at P500 per contributor.
In its basic aspects, KCFAPI was created to conform with other insurance companies. It was founded upon scientific and actuarial principles, and governed by the licensing and supervisory rules of the Office of the Insurance Commissioner. On the basis of its objectives, however, KCFAPI was recognized as a Mutual Benefit Association.
(Source: “A History of the Knights of Columbus in the Philippines (1905-1990)” by Professor Justina S. Ocampo)