THE INSURANCE Commission (IC) has issued a show cause order against pre-need company Prime Care Kaagapay Life Plan, Inc. (Prime Care Kaagapay) on questions of fraud after bank records did not match the company’s claims.
In a statement on Friday, IC said they found the bank records that Prime Care Kaagapay submitted when it applied to renew its license and prove that it complied with the P100-million capitalization requirement were “spurious” or fake.
“Upon verification with the depository bank of Prime Care Kaagapay, it was revealed that the bank certification, which was supposed to prove that it has the required P100 million minimum capitalization under the Pre-Need Code, was spurious,” Insurance Commission Dennis B. Funa was quoted as saying.
Mr. Funa said it was during their investigation that they found the company’s bank certifications submitted bore the same serial number of the same account “but with different amount of available balances.”
Upon further investigation, it found that the bank account has already been closed and only contains an outstanding balance below P100 million, or the minimum paid-up capital for pre-need firms.
With this, the IC is set to place the Prime Care Kaagapay under conservatorship for it to take over the assets and management of the company, a preventive measure to ensure that its assets will only be used for legitimate business purposes.
“While we cannot disclose the details of the ongoing investigation until its completion, we assure the public that we are carefully looking into all possible violations of the responsible officers and hold them liable,” Mr. Funa said. — BML