DOF pushes...

panies are: Centennial Guarantee Assurance Corp., CAP Life Insurance Corp., FLT Prime Insurance Corporation, Manila Surety and Fidelity Co., Inc., Meridian Assurance Corp., The Solid Guaranty. Inc., and United Insurance Co., Inc.

As a consequence of the surrender of their licenses to act as insurance companies, these companies were issued individual Servicing Licenses for the orderly “run-off” of their insurance businesses.

“The existing policyholders of these companies numbering to more or less one hundred seventy thousand will not be affected by this as all existing contracts issued by these companies will remain effective,” Funa said.

He added that the insurance companies are still bound to honor their contractual obligations and settle the insurance claims that may be filed,” he said.

Funa said that the commission continues to closely monitor the limited business activities of these companies, specifically to ensure that all their liabilities to their policyholders are paid and settled as they become due.

According to Funa, majority of these companies voluntarily surrendered their licenses to act as insurer due to their inability to comply with the R550-million minimum net worth requirement.

“While these companies are not compliant with the present R550-million net worth requirement, the net worth of these companies are positive which means that they have sufficient assets to settle their obligations to their policyholders,” he added.