The pre-need code was signed into law just last December 2009 and the implementing rules were signed just last March.

In a report published by Business World,  Insurance Commissioner Santiago Javier Ranada also said that the IC needs about 150 more employees, including lawyers, actuaries and researchers, to manage pre-need matters.

Ranada, however, added that the IC is prepared to hear and settle pre-need cases.

To request for assistance, you can refer to the Claimant’s Request for Assistance form on the IC website as reference for details you need to include in your letter:

• Name of Planholder
• Address
• Telephone No.
• Name of Pre-Need Company
• Plan No.
• Name of Plan
• Amount of Plan
• Maturity Date
• Summary of Claimant’s Request

You can also refer to the complaint form designed by the SEC for pre-need complaints.

Related Article:

Pre-need Companies in the Philippines Now under the Insurance Commission

How to File a Complaint Against Any Pre-need Firm in the Philippines

Again, it’s the planholders who are suffering.

Back in April, Permaplans’ president Juan Miguel Vazquez said his firm isn’t considering going to court for rehabilitation because court rehab takes time and delays payments to planholders.

But now the firm has filed for rehab, which according to Justice Secretary Raul Gonzalez is not the best option for planholders. He mentioned this while commenting on the Legacy case.

An example of a pre-need court rehab is that of CAP. After getting suspended in 2004, CAP petitioned for rehab in 2005. The court granted it in 2006. Up to now,  CAP planholders have not received what is due them.

I also have a fully-paid CAP plan for my niece, but I’ve temporarily stopped pursuing it. I also sold one big CAP plan to a family friend, and I’ve made my big sorry and they’ve been nice. But I don’t know if the family thinks of CAP and then thinks of me. I’m glad now I sold only one.

Going back to PermaPlans:

According to Doris Dumlao of Philippine Daily Inquirer,
Permaplans petitioned a Makati court on May 21 to allow it to do the following:

• pay planholders who want to terminate their plans on a 60-40 basis: 60 percent in assets such as memorial lots and 40 percent in cash

• pay holders of maturing plans in five years: 10 percent on the 1st year, 45 percent on the 4th year and 45 percent on the 5th year.

Permaplans has about 11,000 planholders.

I’m saddened by the fact that Vazquez and the SEC are fighting.

Vazquez said the SEC froze Permaplans’ trust fund, so PermaPlans was forced to file for rehabilitation.

But the SEC said it didn’t freeze Permaplans’ trust fund.

According to the SEC, what it did was:

• to notify Permaplans that SEC opposed its plan of paying planholders who prefer to terminate their plans on a 60-40 basis

• to direct the trustee banks to secure approval first from SEC before approving withdrawals from Permaplans

There’s an article by Neal Cruz titled Gov’t regulatory agencies sleeping on the job . He didn’t name the pre-need firm, but obviously he’s referring to Permaplans.

I’m just bothered by the initial action of court rehab:

protect the pre-need firm from claims or give a reprieve to the pre-need firm from paying its obligations while something is being worked out.

Sources:

Permaplans seeks court approval for rehab
By Doris Dumlao
Philippine Daily Inquirer

SEC tightens lid on Legacy
By Darwin G.Amojelar
The Manila Times

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

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.

Pero, come to think of it, baka indication rin ng paghihirap nila yong amount ng check. Bakit 100,800 pesos lang?

Anyway, kahit naman yata tayo, kahit naghihirap tayo, nagbibigay pa rin tayo kahit konti kung may nanghihinging nangangailangan talaga?

20 pre-need firms ang na-mention doon, including Danvil Plans.

PhilHealth receives P100.8K from the
Federation of Pre-Need Plan Companies – February 4, 2009

Danvil Plans, Other Pre-Need Firms: Updates

Pre-Need News — Philippines: Key Points

Daniel Villanueva: Founder and President, Danvil

Danvil Is Still Berkley on Pre-need Federation Website

Pre-Need Philippines: Kabado Na Naman?

How to File a Complaint Against Any Pre-Need Plan Company in the Philippines

Akala ko Naghihirap ang Pre-Need Industry

To Danvil, From a Hurting OFW in Japan

——————————————–

If you are a policyholder of Danvil Plans Inc., you should already have received a letter from the firm announcing its decision not to proceed with the planned transfer of its pre-need portfolio to Legacy Consolidated Plans Inc.

Well, this is very good news in light of sorry developments in Legacy Consolidated and its parent company Legacy Group. According to news reports, Legacy has filed for voluntary dissolution, including the dissolutions of companies under its management, namely Scholarship Plans Inc., Legacy Card Inc., Legacy Consolidated Asset Holdings Inc., Galaxy Realty and Holdings Inc., Fusion Capital Corp. and Conventional Realty Corp. The parent company Legacy Group itself is troubled due to the financial difficulties of its rural banks, many of which have closed.

Back in June 2008, controversies about Legacy were the focus of my arguments when I talked with Ms. Aurora Dino, assistant vice president and branch manager of Danvil’s office in Makati, about the planned transfer of the pre-need portfolio to Legacy. I’m really very glad now that Danvil did not rush the transfer proceedings back in June.

Somehow, I was not really surprised about the decision and the letter from Danvil because I checked Danvil’s office in Makati from time to time.

Officers of Danvil Plans, may you have more power and opportunities to nurture and grow Danvil. The education and financial well-being of  long-time  planholders’ dependents rely on your success and continued commitment. Just please change drastically your aggressive and oftentimes unethical marketing tactics.