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After reading What is Republic Act no. 9829 or the Pre-need Code of the Philippines?, read also Is the issuance of pre-approved credit cards allowed?
Pre-need plans are contracts for the benefit of the planholders
Planholder refers to any person who purchases pre-need plans from a pre-need company
Pre-need company refers to any corporation registered with the Insurance Commission and authorized or licensed to sell or offer to sell pre-need plans
Pre-need Code of the Philippines or Republic Act No. 9829 declares that it is the policy of the State to regulate the establishment of pre-need companies and to place their operation on sound, efficient and stable basis to derive the optimum advantage from them in the mobilization of savings and to prevent and mitigate, as far as practicable, practices prejudicial to public interest and the protection of planholders.
The Pre-need Code of the Philippines provides that the State regulate, through an empowered agency, pre-need companies based on prudential principles to promote soundness, stability and sustainable growth of the pre-need industry.
What is a Pre-need company?
The law says:
Pre-need company refers to any corporation registered with the Insurance Commission (Commission) and authorized or licensed to sell or offer to sell pre-need plans. The term “pre-need company” also refers to schools, memorial chapels, banks, nonbank financial institutions and other entities which have also been authorized or licensed to sell or offer to sell pre-need plans insofar as their pre-need activities or business are concerned.
What are Pre-need plans?
The law says:
Pre-need plans are contracts, agreements, deeds or plans for the benefit of the planholders which provide for the performance of future service/s, payment of monetary considerations or delivery of other benefits at the time of actual need or agreed maturity date, as specified in the plan, in exchange for cash or installment amounts with or without interest or insurance coverage and includes life, pension, education, interment and other plans, instruments contracts or deeds as may in the future he determined by the Commission.
Who is a Planholder?
The law says:
Planholder refers to any person who purchases pre-need plans from a pre-need company for whom or for whose beneficiaries’ benefits are to be delivered, as stipulated and guaranteed by the pre-need company. The term includes the assignee, transferee and any successor – in – interest of the planholder.
What are the pre-requisites to incorporation of Pre-need Companies? A related article will be posted in a few days.
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