For lacking a license to engage in the insurance business, the industry regulator has shuttered the Bureau of Fire Protection Mutual Aid Beneficiary Association Inc. (BFPMBAI).
In a statement on Wednesday, Insurance Commissioner Dennis B. Funa said BFPMBAI was placed under conservatorship last Dec. 12, noting the association does not have enough funds to secure the interests of policyholders and creditors.
The Insurance Commission (IC) issued the order after it found out that BFPMBAI did not stop operations despite the commission’s cease and desist order last Feb. 9, 2017.
To recall, Fire Services Mutual Benefit Association Inc. (FSMBAI), a duly-licensed mutual benefit association (MBA), filed an administrative complaint against BFPMBAI alleging the latter was acting as an MBA sans a license. FSMBAI has as its members, officers, employees and retirees of the Bureau of Fire Protection as well as Department of Interior and Local Government personnel.
Last September, Funa said the IC found “substantial proof” against BFPMBAI. The association was also given a fine of P200,000.
The latter said the regulator should not enforce its cease and desist order since an appeal had been filed before the finance secretary.
In issuing the latest decision, Funa said: “The (IC) cannot be deprived of its regulatory powers under the Insurance Code.”
He added, “the [IC] has zero tolerance for unlicensed insurance activity in the country.”