THE INSURANCE COMMISSION (IC) has placed Caritas Financial Plans, Inc. (CFPI) under liquidation due to its inability to pay its obligations.
This comes over a year after the pre-need firm was placed under receivership and issued a notice of stay order on April 25, 2024.
The stay order, which suspends all payments of claims, will remain effective until the termination of the liquidation proceedings of CFPI or until further notice, the IC said in a public notice published on May 5 (Monday).
The regulator previously said CFPI is suffering from liquidity problems, which resulted in continuous delay and difficulty in paying its obligations.
The IC placed the pre-need company under in August 2023, which stopped it from doing business as it was unable to comply with regulatory requirements due to its parent firm Caritas Health Shield, Inc.’s (CHSI) ongoing financial woes.
CFPI had a capital deficiency of P118.685 million and a trust fund deficiency of P36.196 million as of Dec. 31, 2023, based on its unaudited financial statements, the IC earlier said.
It had assets worth P1.146 billion and liabilities amounting to P1.206 billion as of end-2023, it added.
In the May 5 notice, the IC emphasized that CFPI is separate and distinct from CHSI and Caritas Life Insurance Corp.
CFPI’s parent firm CHSI, a health maintenance organization, has been under receivership and a similar stay order since Aug. 1, 2023 due to its inability to comply with the IC’s solvency requirements, as the company had a net worth deficiency of P6.48 billion as of 2018.
CHSI’s other subsidiary, life insurer Caritas Life Insurance, has been under conservatorship since the same date and was likewise told to cease and desist from conducting business. — AMCS
