The Insurance Commission (IC) has shuttered pre-need company Prime Care Kaagapay Life Plan Inc. for lacking enough capital to operate.
In a June 8 notice to the public, Insurance Commissioner Dennis B. Funa said the IC last February issued a show-cause order against Prime Care Kaagapay due to alleged “suspicious” and “fraudulent” bank documents that the company had submitted to have its license renewed.
On Feb. 20, the IC denied Prime Care Kaagapay’s application to renew its certificate of authority as a pre-need firm for licensing year 2020, due to alleged fraud when it had to prove its financial viability to the regulator.
Funa said the IC ordered Prime Care Kaagapay “to cease-and-desist from engaging in pre-need business and/or acting as a pre-need company without the required license under the Pre-Need Code.”
“The Insurance Commission is likewise placing Prime Care Kaagapay under conservatorship pursuant to the Pre-Need Code,” Funa said.
Funa also ordered Prime Care Kaagapay to cooperate with lawyer John A. Apatan, who had been designated as conservator, and officials examining the affairs and financial condition of the company.
Funa said other “appropriate action” may be taken against Prime Care “as may be warranted”.
“The public is hereby warned to refrain from transacting any pre-need business with Prime Care Kaagapay,” Funa said.
“The said company is not duly authorized by the Insurance Commission to do pre-need business,” Funa added.
Edited by TSB
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