THE Insurance Commission (IC) has suspended the operations of pre-need firm Paz Life Plan, Inc. after it failed to comply with the capitalization requirement.

In a statement Thursday, July 5, the IC said it has placed the insurer under conservatorship in an April 3 order, banning it from selling memorial plans.

“The result of the examination made into the affairs, financial condition and methods of doing business of Paz Life Plan as of year-end 2016 disclosed that the company failed to comply with the minimum P50 million paid-up capital requirement,” Insurance Commissioner Dennis B. Funa was quoted as saying in the statement.

“Particularly, Paz Life Plan’s paid-up capital amounted to P1.17 million only.”

As a consequence of being placed under conservatorship, Paz Life Plan is prohibited from selling new memorial plans contracts, transferring the administration of the company to the IC-appointed conservator. — Karl Angelo N. Vidal

RELATED ARTICLESMORE FROM AUTHOR