 
After reading On Registration of Pre-Need Plans, read also Licensing of Sales Counselors and General Agents
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For every pre-need plan which the pre-need company intends to offer for sale to the public, the pre-need company shall file with the Insurance Commission a registration statement for the sale of pre-need plans
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Pre-need plans shall be advertised and sold in an appropriate non-misleading manner
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No registered pre-need plan shall be sold to prospective planholders unless an information brochure has been provided to the purchaser
Pre-need plans are contracts, agreements, deeds or plans for the benefit of the planholders which provide for the performance of future service/s, payment of monetary considerations or delivery of other benefits at the time of actual need or agreed maturity date, as specified in the plan, in exchange for cash or installment amounts with or without interest or insurance coverage and includes life, pension, education, interment and other plans, instruments contracts or deeds as may in the future be determined by the Insurance Commission (Commission).
What are the requirements for registering a Pre-need plan?
The law says:
Within a period of forty – five (45) days after the grant of a license to do business as a pre-need company, and for every pre-need plan which the pre-need company intends to offer for sale to the public, the pre-need company shall, among other things, file with the Commission of the following:
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Duly accomplished registration statements;
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Board resolution authorizing the registration of applicant’s pre-need plans;
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Opinion of independent counsel on the legality of the issue;
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Audited financial statements;
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Viability study with certification, under oath, of pre-need actuary accredited by the Commission;
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Copy of the proposed pre-need plan; and
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Sample of sales materials.
Take note that all forms, including its amendments, relating to the pre-need plans shall be approved by the Commission. No pre-need contracts or certificates shall be issued or delivered within the Philippines unless in the form previously approved by the Commission.
As for pre-need advertising rules, Pre-need plans shall be advertised and sold in an appropriate non-misleading manner in accordance with the rules prescribed by the Commission. It shall be unlawful for any pre-need company to advertise itself or its pre-need plans unless the Commission has approved such advertising material.
Furthermore, no registered pre-need plan shall be sold to prospective planholders unless an information brochure, which has been filed with the Commission, has been provided to the purchaser. The information brochure shall contain an explanation of the principal features of the pre-need plan, a statement that the planholder may avail of a default or reinstatement period within which to reinstate his lapsed plan, and the conditions of he same and the rates of return for scheduled benefit plans and illustrative yields for contingent benefit plans; and such other information that the Commission shall require by rule.
When may a sales counselor be allowed to sell pre-need plans? A related Article will be posted in a few days.
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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