IC Circular: Pre-Need Companies Must Include 'Plan' in Name

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IC Circular Letter No. 2015-41: IC Circular: Pre-Need Companies Must Include 'Plan' in Name

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Title Supreme Court: IC Circular: Pre-Need Companies Must Include 'Plan' in Name

Law: Ic Circular Letter No. 2015-41

Decision Date: Aug 3, 2015

Pre-need companies must include the word "Plan" or "Plans" in their corporate names to enhance public identification and compliance, with a six-month deadline for existing companies and a fine for non-compliance.

legal compliance

A

Legal Authority and Issuance

Issued under the authority of the Insurance Commissioner as empowered by Section 6 of the Pre-Need Code of the Philippines.
The directive is contained in IC Circular Letter No. 2015-41 dated August 3, 2015.

Application Requirements for New Pre-Need Companies

Prospective pre-need companies seeking a Certificate of Authority must ensure the inclusion of the mandated words in their corporate names upon registration with the Securities and Exchange Commission (SEC).
This is a prerequisite for approval of the Certificate of Authority by the Insurance Commissioner.

Compliance Requirements for Existing Pre-Need Companies

Pre-need companies already licensed must amend their corporate names to include "Plan" or "Plans" within six (6) months from the issuance of the Circular.
Failure to comply within the specified timeframe will affect the renewal of their Certificate of Authority.

Penalties for Non-Compliance

Companies failing to comply with the name amendment requirement shall be fined Ten Thousand Pesos (₱10,000.00).
Non-compliance is a ground for possible non-renewal of the Certificate of Authority, thereby affecting the legality of their operations.

Effectivity

The Circular Letter takes effect immediately upon issuance.
Compliance serves the public interest by promoting transparency and clear identification within the pre-need industry.

END