Pre-need Companies in the Philippines Now under Insurance Commission
Pre-need companies in the Philippines are now under the supervision of the Insurance Commission.
The pre-need law was passed in December 2009 and the implementing rules and regulations (IRR) were signed in March 2010.
Visit the website of the Insurance Commission at insurance.gov.ph, and you will see the pre-need code and the IRR already published on the site.
You will also see the list of the 23 pre-need firms under Directory of the IC home page. However, the list on the IC was still the list previously prepared by the SEC.
The list includes the 23 pre-need firms that were licensed to sell pre-need plans as of December 2009:
- Abundance Providers and Entrepreneurs Corporation (APEC) (formerly Pacific Plans)
- AMA Plans
- Ayala Plans
- Caritas Financial Plans
- CityPlans
- Cocoplans
- Danvil Plans (formerly Berkley International Plans)
- Destiny Financial Plans
- Eternal Plans
- First Country Plans
- First Union Plans
- Grayline Plans
- Himlayang Pilipino Plans
- Loyola Plans Consolidated
- Manulife Financial Plans
- Mercantile Careplans
- Paz Memorial Services
- Philplans First (formerly Philam Plans)
- Provident International Plans
- St. Peter Life Plan
- Sun Life Financial Plans
- Transnational Plans
- Trusteeship Plans
The only two changes from the May 2009 list are:
- the addition of APEC to the list
- change of name of Philam Plans to Philplans
For those who have complaints, inquiries or claims, you can address them to:
Public Assistance & Information Division
523-8461 to 70 local 102, 103, 105
pubassist@insurance.gov.ph
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.)
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.
Prudentialife Plans — License to Sell Pre-need Plans Suspended
SEC Chairperson Fe Barin reported that SEC suspended the license of Prudentialife to sell new pre-need plans because its capital buildup plan did not pass the requirements of the SEC.
Prudentialife President Jose Alberto Alba has responded to the SEC’s suspension of its license to sell new pre-need plans by saying that the firm will continue to operate as a servicing firm for its preneed plans.
He said the firm will continue to pay benefits to planholders.
He also said Prudentialife Market Resource Corp. will continue to sell health plans, mutual funds and other insurance products and will continue to pursue new opportunities beyond the preneed industry.
I’m just bothered by the last statement in the article, saying that only 2 preneed firms submitted their capital build-up plans before the deadline of April 15 — Prudentialife and Cocoplans. Cocoplans’ proposal was approved while Prudentialife’s plan was not.
What about the other preneed firms? What are their capital build-up plans?
In a related article, SEC Chairperson Fe Barin was quoted as saying that planholders affected by the suspension of Prudentialife’s license to sell pre-need plans should go to the SEC for advice.
Source/Reference: Hannah L. Torregoza, author
SEC revokes license to sell of Prudential Life Plans, firm airs side
Manila Bulletin mb.com.ph
To Danvil, From a Hurting OFW in Japan
By Lemmor Adsiv, an OFW in Japan
March 7, 2009
It is of great help for me it you could answer me on this inquiry. I finished paying my Danvil plan and it will mature in 2019. Actually I paid it in advance so as not to miss payments. But I’m having many sleepless nights because of many doubts about how pre-need companies are doing in the market today. I am having second thoughts about waiting for my plan to mature. Any idea on this? How much money would I get in return if I apply for early reimbursement of my payments? Much as I would like to inquire personally at the Danvil office regarding the matter, I’m here in Japan working hard to make both ends meet for my family. It was hard earned money that I used to pay for my plan. That’s why I am really bothered and annoyed by different news I heard about the pre-need business.
Dalawa ang aking plans sa Danvil. Sad to say na noong kinuha ko yon sa SM Southmall, di ko naintindihan masyado ang paliwanag. Kadarating ko lang noon, galing ako sa work ko abroad and I’m only on my vacation. Actually, I can say na forced and pressured lang din ako ng Danvil employee. Para bang para makauwi na lang ako kumuha na lang ako, then bahala na. Parang ganoon ang nangyari sa akin.
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