Photo by Scott Graham on Unsplash
MIP | (via Insurance Commission) In a letter dated 29 November 2022, the Insurance Commission (IC) affirmed its Cease and Desist Order (CDO) against Mortuaries’ Cooperation Internment Assistance Group, Inc. (MCIA Group, Inc.) issued on 11 March 2020. The IC’s letter dated 29 November 2022 denied MCIA Group, Inc.’s request for reconsideration of the issuance of said CDO.
Meanwhile, the IC also issued a CDO against Future Life Care Memorial Services Co. (Future Life) on 17 October 2022.
The issuance of the CDOs were prompted by various complaints against MCIA Group, Inc. and Future Life. After thorough investigation by the IC’s Regulation, Enforcement, and Prosecution Division (REPD) of said complaints, both companies were found to be engaging in activities akin to pre-need and/or insurance business without the requisite Certificate of Authority issued by the IC.
Both companies were consequently ordered to return all contributions or monies collected or received from its clients relative to the unlicensed conduct of business, without prejudice to the filing of appropriate cases against the responsible officers of said companies.
“For protection and peace of mind, the public is strongly advised to transact only with duly licensed pre-need and insurance companies and licensed intermediaries,” reminded Insurance Commissioner Dennis Funa.
The list of the licensed regulated entities by the IC can be found at its website at www.insurance.gov.ph.
MCIA Group, Inc. was found to be engaging in the pre-need business without the requisite license to do so, contrary to the provisions of the Pre-Need Code of the Philippines (Republic Act No. 9829). The IC found the company to have undertaken “to provide performance of future memorial services upon death of any of its members through facilitations with affiliated mortuaries and funeral homes in exchange for cash or installment amounts”. Upon enrollment, MCIA Group, Inc.’s members were afforded the reasonable expectation to provide them or their elected beneficiaries or assignees future memorial services, as well as other advertised benefits in the event of death.
The company offered packages primarily availed through an installment basis scheme encompassing more than one (1) year.
Future Life, on the other hand, was found to be engaging in selling both pre-need and insurance products without the necessary license from the IC. The company was found to be offering, through Facebook pages, mortuary packages with a five (5)-year period to save feature, natural death benefits, accidental death benefits, and a memorial service package. Moreover, Future Life was found to have also acted as an
insurance agency without a Certificate of Authority issued by the IC, contrary to the provisions of the Insurance Code of the Philippines, as amended by Republic Act No. 10607.
“As we advise the public to be vigilant, they can rest assured that the IC will be even more vigilant and relentless in taking down unlicensed entities for the security and safety of the Philippine insurance, pre-need, and health maintenance organization (HMO) markets,” Commissioner Funa said.
Photo by Scott Graham on Unsplash
