After reading How may a Planholder terminate his Pre-Need Plan?, read also May the License of a Foreign Corporation to Transact Business in the Philippines be revoked?
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A planholder may terminate his pre-need plan at any time by giving written notice to the issuer
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Nonpayment of a plan within the grace period shall render the plan a lapsed plan
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The planholder may reinstate his plan
The pre-need company must provide in all contracts issued to planholders a grace period of at least sixty (60) days within which to pay accrued installments, counted from the due date of the first unpaid installment. Nonpayment of a plan within the grace period shall render the plan a lapsed plan.
May a planholder reinstate his plan?
The law says:
Yes.
Any payment by the planholder after the grace period shall be reimbursed, unless the planholder duly reinstates the plan. The planholder shall be allowed a period of not less than two (2) years from the lapse of the grace period or a longer period as provided in the contract within which to reinstate his plan. No cancellation of plans shall be made by the issuer during such period when reinstatement may be effected.
Within thirty (30) days from the expiration of the grace period and within thirty (30) days from the expiration of the reinstatement period, which is two (2) years from the lapse of the grace period, the pre-need company shall give written notice to the planholder that his plan will be cancelled if not reinstated within two (2) years. Failure to give either of the required notices shall preclude the pre-need company from treating the plans as cancelled.
On the part of the planholder, how may he terminate his plan?
The law says:
A planholder may terminate his pre-need plan at any time by giving written notice to the issuer.
A pre-need plan shall contain a schedule of termination values to which the planholder is entitled to upon termination. Such schedule of termination value shall be required for all in – force pre-need plans and shall be fair, equitable and in compliance with the Insurance Commission (Commission) issuances. The termination value of the pre-need plan shall be predetermined by the actuary of the pre-need company upon application for registration of the pre-need plans with the Commission and shall be disclosed in the contract.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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