Philippine Daily Inquirer

PRENEED FIRM PLACED UN­DER CON­SER­VA­TOR­SHIP

-

The In­sur­ance Com­mis­sion has placed preneed firm Paz Life Plan Inc. un­der con­ser­va­tor­ship as it was un­able to com­ply with the cap­i­tal­iza­tion re­quire­ment.

“The re­sult of the ex­am­i­na­tion made into the af­fairs, fi­nan­cial con­di­tion and meth­ods of do­ing busi­ness of Paz Life Plan as of end-2016 showed the com­pany had failed to com­ply with the min­i­mum P50-mil­lion paid-up cap­i­tal re­quire­ment," In­sur­ance Com­mis­sioner Den­nis B. Funa said, adding that Paz Life Plan’s paid-up cap­i­tal was only P1.17 mil­lion.

“Un­der the Pre-Need Code, preneed firms ex­ist­ing at the time of the ef­fec­tiv­ity of the law sell­ing a sin­gle type of plan are re­quired to have a min­i­mum unim­paired paid-up cap­i­tal of P50 mil­lion. Those sell­ing two or three types of plans are re­quired to have a min­i­mum paid-up cap­i­tal of P75 mil­lion and P100 mil­lion, re­spec­tively,” Funa said.

The or­der plac­ing Paz Life Plan un­der con­ser­va­tor­ship came af­ter the com­pany failed to com­ply with the or­der of the In­sur­ance Com­mis­sion to ad­dress the cap­i­tal de­fi­ciency is­sue and ex­plain why it should not be placed un­der con­ser­va­tor­ship, Funa said.

As such, Paz Life Plan can no longer sell new me­mo­rial plan con­tracts.

But Funa clar­i­fied that me­mo­rial plans is­sued be­fore the con­ser­va­tor­ship or­der re­mained valid and the obli­ga­tion of the com­pany to­ward the plan­hold­ers still ex­isted un­til the ex­pi­ra­tion of the plans.

On its web­site, Paz Life Plan said La Funer­aria Paz Inc. was its “pre­mium ser­vice provider.”

For­merly Paz Me­mo­rial Ser­vices Inc., the com­pany’s li­cense was sus­pended by the reg­u­la­tor through an or­der is­sued by Funa in April.

Last month, Funa named lawyer Raul I. Rafael con­ser­va­tor to man­age the com­pany.

At end-2016, Paz Life Plan had 14,739 plan­hold­ers.

Newspapers in English

Newspapers from Philippines