The Insurance Commission placed Eternal Plans Inc. under conservatorship beginning January this for the latter’s alleged failure to comply with directive to fill the cash deficiency in its 2018 trust fund as required under the Pre-Need Code of the Philippines.
Eternal Plans, a Pasig City-based pre-need company established by the late Ambassador Antonio Cabangon Chua in 1981, offers life, pension and education plans.
Commissioner Dennis Funa signed the conservatorship order against Eternal Plans on Jan. 20, 2022, citing the company’s “continuing inability or unwillingness to comply with the Order of the Commission pursuant to Section 49 of the Pre-Need Code [Republic Act No. 9829].”
Funa named John Apatan, the division manager of the commission’s conservatorship, receivership and liquidation division, as ex-officio conservator for the Eternal Plans.
Section 49 of the Pre-Need Code provides that, “a conservator may be appointed to take charge of the assets, liabilities and the management of such company, collect all moneys and debts due the company and exercise all powers necessary to preserve the assets of the company, reorganize its management, and restore its viability.”
Funa said in a memorandum to Finance Secretary Carlos Dominguez III dated Jan. 31 that Eternal Plans had asked for regulatory reprieve with an additional request to undergo rehabilitation after failing to meet the commission’s deadline to make cash infusion sufficient to fill its trust fund deficiency.
“We find this request consistent with the regime of conservatorship. Hence, the case of the company falls under the conservatorship process under the Insurance Code,” Funa said in the report to Dominguez.
Funa said no more correspondence and/or submission was received by the commission from Eternal Plans and the “required trust fund deficiency remains deficient.”
The commission’s directive was for Eternal Plans to infuse cash into its trust fund within five days from the receipt of the IC’s letter dated Nov. 18, 2021.
After the Eternal Plans asked for an extension, the commission gave it until Dec. 28, 2021 to comply with the order.
The commission said in a letter dated Dec. 22, 2021 that Eternal Plans’ previous non-cash contributions were provisionally approved with the condition to sell the same within one year or to replace the same with cash if the said assets remained unsold after the given period.
Funa said the Insurance Commission also made it clear to Eternal Plans that non-cash contributions could not be accepted as the Pre-Need Code requires that deposits to the trust fund should always refer to cash.
