The Insurance Commission (IC) has ordered Eternal Plans Inc. (EPI) to be placed under conservatorship beginning January 2022, the Department of Finance (DOF) said in a statement yesterday.
This is due to its failure to comply with its directive to fill the cash deficiency in its 2018 Trust Fund as required under the Pre-Need Code of the Philippines, the DOF said.
Dennis Funa, insurance commissioner, signed the conservatorship order against EPI on January 20, 2022, citing as reason 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 9829).”
Funa also named John Apatan, the IC’s conservatorship, receivership and liquidation division manager, as ex-officio conservator for EPI.
According to Section 49 of the Pre-Need Code, “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.”
In his memorandum to the DOF, Funa said EPI had asked for regulatory reprieve with an additional request to undergo rehabilitation after failing to meet the IC’s deadline to make a 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.
Funa added no more correspondence and/or submission was received by the commission from EPI and the “required Trust Fund deficiency remains deficient.”
The IC directive was for EPI to infuse cash into its Trust Fund within five days from the receipt of the IC’s letter dated November 18, 2021.
After EPI asked for an extension, the IC gave it until Dec. 28, 2021, to comply with the order. – Angela Celis
