Loyola Plans to pay claims

THE INSURANCE Commission Monday said Loyola Plans Consolidated Inc. would pay plan holders’ claims today as the pre-need firm planned to sell a number of assets to fill in the trust fund deficiency.

Insurance Commissioner Emmanuel F. Dooc told a press conference that no less than the Loyola Plans’ owner, Jesusa Puyat-Concepcion, discussed with him Monday morning the company’s proposal.

“She belonged to a respectable family, had been in business for so long, for generations, and I’m happy that when I came to my office this morning, she was waiting for me,” Dooc said.

Monday was also the deadline for the troubled firm to answer the commission’s show-cause orders asking Loyola Plans to explain why it should not be placed under conservatorship as well as issued a cease-and-desist order.

Dooc said Concepcion offered to sell real estate assets worth P1.8 billion to cover the P238.3-million deficiency. The trust fund stood at P1.5 billion, but the requirement was P1.7 billion to cover plan holders.

“Loyola Plans is not liquid but they have enough assets to cover the deficiency,” he pointed out.

Loyola Plans was expected to turnover to the Insurance Commission Monday afternoon transfer certificates of title for the properties, some of them located in Quezon City. These assets would be sold by yearend, according to Dooc.

Hence, “we have agreed not to place the company under conservatorship and to issue cease and desist orders,” Dooc said.

The Insurance Commission will also install a crisis management team at Loyola Plans’ headquarters in Makati.

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