Insurance Commission and Failed Pre-Need Firms in the Philippines

I hope those owners of pre-need plans issued by failed pre-need firms get together and study the relevant provisions of the Pre-need Code of the Philippines (Republic Act No. 9829), which was signed into law on Dec 3, 2009 and effective on the same date.

I think the most relevant provisions are the following:

CHAPTER XIII
CONSERVATORSHIP AND PROCEEDINGS UPON INSOLVENCY

SEC. 51. Commission’s Power to Assume Trustee Functions.

In cases where the Commission has ordered the liquidation of the pre-need company...

SEC. 52. Liquidation.

(a) In cases where the Commission determines that the pre-need company shall be liquidated, it shall have the power to commence insolvency proceedings in the appropriate court...

(b) Proceedings in court shall proceed independently of proceedings in the Commission for the liquidation of claims...

(c) In liquidating claims of planholders, the Commission shall ensure that all planholders receive an equitable distribution of their claims, considering the amounts each has paid into their plans, the termination values due each planholder, the present value of their claims and other equitable considerations.

I'm sad I'm not a lawyer and I don't have much time to focus on these things, but based on the number of pre-need-related comments I received on my other blogs, I hope planholders of failed pre-need firms get together and make noise, submit complaints to the Securities and Exchange Commission, the Insurance Commission and to their congressmen or the senators.