Petition against Prudentialife’s liquidation

SC denies

The Supreme Court (SC) has denied a petition seeking to stop the liquidation of shuttered pre-need company Prudentialife Plans, Inc., the Insurance Commission (IC) announced yesterday.

In a statement, the insurance regulators said the SC denied a petition for review filed by Prudentialife and its planholders against the planned liquidation of the pre-need firm that was ordered by the IC and affirmed by the Court of Appeals (CA).

According to IC, the high court’s First Division denied the petition on the ground that the petitioners failed to sufficiently show that the CA has committed any reversible error in affirming the IC directives for liquidation.

Likewise, the SC denied the application for issuance of a temporary restraining order and writ of preliminary injunction seeking to stop the implementation of the liquidation order issued by the IC.

In August 2014, the CA dismissed the petition filed by Prudentialife and its planholders against IC’s decision to terminate the conservatorship status of the pre-need firm, and placing the company under receivership before ordering its liquidation.

Based on CA’s decision, IC’s order placing Prudentialife under receivership is justified, valid and well founded as there is enough evidence showing the company was insolvent based on the financial examination report at the time when firm was still under conservatorship.

Contrary to the allegation that the IC decided to kill a pre-need company which has a good chance of being rehabilitated, the CA affirmed the findings of the commission that the proposed rehabilitation plan which featured “Balik Bayad” program is not a feasible option.

Insurance Commissioner Emmanuel F. Dooc said that the IC, together with its appointed liquidator, is now in the process of converting the non-liquid trust fund assets of Prudentialife into cash which will be distributed to its planholders.

Dooc also lauded the decision of the Supreme Court as it affirms with certainty the power of the IC provided under the Pre-Need Code of the Philippines to take over troubled pre-need companies whose continued operations may be financially hazardous to the public. (CSL)