MANILA, Philippines – The Insurance Commission has placed troubled pre-need company Prudentialife Plans Inc. (PPI) under receivership.
In a directive dated September 19, Insurance Commissioner Emmanuel Dooc said the Commission found proposals for the company’s rehabilitation submitted by PPI, Batiles Group and Loyola Plans were “not exhaustive enough” and “fail to guarantee the best value of the benefits” for the planholders.
“Since there is no clear intention on the part of stockholders of PPI to infuse additional capital or to submit infusion plan to cure the company’s huge financial deficiencies, it is now very clear that PPI will remain insolvent… The Insurance Commission hereby orders PPI to desist from transacting further business,” the directive stated.
Prudentialife Plans had earlier asked the IC to be placed under crehabilitation to save the company.
But the IC said unless a better rehabilitation plan, which should include cash infusion, is presented within 30 days, it will be “constrained to order the gradual liquidation of PPI”.
The IC designated San Diego, Ycasiano, Macias, Estorco, Castaneda, Sanchez Law Office, through Atty Dionne Sanchez, as the interim receiver.
Sanchez is tasked to formulate a receivership plan within 10 days and determine if the company can be revived within 30 days.
If no new rehabilitation plan is found to be viable, Sanchez will act as the interim liquidator.
“We wish to remind all concerned that because of the failure if PPI to fund the trust fund deficiencies, all corporate assets are already earmarked for the deficient educational and pension plan trust funds and to life plan trust fund if subsequently found to be deficient,” the directive stated.
The IC said the stay order it issued last February preventing PPI from selling any new plans will remain in effect until viable rehabilitation plan is approved.