The Insurance Commission has placed Mercantile Careplans Inc. under conservatorship for its failure to comply with the minimum capital requirement on pre-need companies under Republic Act No. 9829 ,or the Pre-Need Code of the Philippines.
“The result of the examination made into the affairs, financial condition, and methods of doing of business of Mercantile Careplans as of end-2018 disclosed that the company failed to comply with the minimum P75-million paid-up capital requirement. Particularly, Mercantile Careplans’ paid-up capital is impaired by P14.23 million,” Insurance Commissioner Dennis Funa said Monday.
“Under the Pre-Need Code, pre-need companies existing at the time of the effectivity of the law selling two types of plan are required to have a minimum unimpaired paid-up capital of P75 million,” Funa said.
Mercantile Careplans was required to address its capital impairment before the IC issued the conservatorship order.