Updates on Danvil Plans and Other Pre-need Firms from March to May 2009
March 13-19
At the Senate hearing on pre-need firms, former Legacy executive Carolina Hinola accused SEC Commissioner Jesus Enrique Martinez of covering up Legacy’s financial problems after accepting gifts from Legacy, including a 5-million-peso house and lot and a 1.5-million Ford Expedition from Legacy head Celso de Los Angeles.
Insiders also claimed that Martinez tried to broker the sale of Danvil Plans to the Legacy Group. The sale did not push through after Danvil Plans backed out of the deal allegedly upon the advice of other top pre-need executives.
(Martinez died on May 6 due to colon cancer complications.)
Flexible Work Arrangements from the Department of Labor and Employment (DOLE)
Last December, when we were put on an extended forced leave, I wondered whether it was legal.
But that is water under the bridge now.
Some worse developments happened, and I’m now out of the company. Since the company is U.S.-owned, it was greatly affected by the U.S. recession.
It was good I had another job waiting, so I was able to continue paying our seemingly unending bills. The Lord made a way for me.
We were given separation payments, but they were not as substantial as those given by multinationals.
Maximum Bank Deposit Insurance Increased to 500,000 Pesos
Starting June 1, 2009, the maximum deposit insurance coverage for bank deposits will be 500,000 pesos.
Info related to the deposit insurance:
- The increase will apply only to deposits in banks closed by the Monetary Board starting June 1, 2009.
- Splitting of a bank deposit account of more than 500,000 pesos within 120 days of a bank holiday or closure order is prohibited.
- Investment accounts are not insured, such as bonds, trust accounts and securities.
- Different types of accounts in the same bank, such as checking, savings, time or other types of deposit accounts, under the same depositor will be counted as one.
For example, if you have a checking account and a savings account in the same bank, the amounts of the two accounts will be added to determine the coverage, which will not exceed 500,000.
- Several accounts in the main branch and branches of the same bank under the same depositor will be counted as one.
For example, if you have deposit accounts in the main branch and a branch of the same bank, the two accounts will be added to determine the coverage, which will not exceed 500,000.
- Deposits in different banks are insured separately.
- The insurance premium is paid by banks, and not by depositors.
- If a depositor’s bank account exceeds 500,000, the depositor can claim the rest of the deposit amount from the liquidator of the bank if the bank has still assets remaining.
- The depositor of the failed bank must file his claim with the PDIC within 24 months.
Source: Philippine Deposit Insurance Corporation (PDIC)
Danvil Plans, Coco Plans, AMA Plans Deficient in Their Trust Funds
Here are some key points of recent news on these 3 pre-need firms.
Thanks to Epoy who notified me about these developments.
The information here was gathered by Philippine Daily Inquirer reporters at the resumption of the Senate inquiry into pre-need firms on May 6.
- Coco Plans, AMA Plans and Danvil Plans were found by SEC to have deficient trust funds.
- Coco Plans and Danvil Plans have submitted their proposals on how to build up their capital.
- AMA Plans has not yet submitted its proposal.
- Some of the remaining 19 pre-need firms have submitted their financial statements and have to comply with the SEC requirement until May 14.
- Caesar Michelena of Coco Plans said Coco Plans’ trust fund is enough to make maturity pay-outs for the next 9 years.
- SEC Chairwoman Fe Barin said SEC was reviewing the financial statements of the pre-need firms and coordinating with trustee banks if the trust funds are there.
- Senator Manuel Roxas suggested that SEC require pre-need firms to fill up the deficiencies in their trust funds before they continue selling plans.
- Roxas mentioned that the failed Legacy was still selling plans the month before it applied for dissolution.
Source: 3 more troubled pre-need firms watched
By Christine Avendano
Philippine Daily Inquirer
I Have to Correct My Mistake: Prudentialife Plans Inc. is Different from Philippine Prudential Life Insurance Co. Inc.
I’m very sorry I may have misled some of you when I answered some of your questions/comments in relation to “Prudential.”
My mistake was I thought the Prudentialife Plans Inc. which was suspended recently by SEC is the same Prudential which has been partnering with Danvil Plans since 2007.
Thanks so much to Rolly who made the correction. Based on Rolly’s info and on my quick online research, these are some info that would clear things up:
Philippine Prudential Life Insurance Co. is the company which bought the life insurance portfolio of Berkley/Danvil in 2007. This is also the issuer of life insurance plans and endowment plans being sold by Danvil Plans.
Philippine Prudential is a life insurance company supervised by the Insurance Commission. It is not a pre-need company.
web site: http://www.philprudentiallife.com/pplic/
On the other hand, Prudentialife Plans Inc. is a pre-need company supervised by the SEC. This is the company whose license to sell was suspended by the SEC last April 2009.
web site: http://www.prudentialife.com/
The good news then to many of you whose plans were issued by Philippine Prudential Life Insurance Co. ( sold through Danvil Plans) is that your plans are not affected by the trust fund problems prevalent in the pre-need industry… because your plans are insurance plans issued by an insurance company, which has been operating since 1963, according to its web site.
-
Custom Search