Filing of Pre-Need Annual Statements

March 10, 2016 INSURANCE CIRCULAR LETTER NO. 014-16 Supersedes: CL No. 2014-13 TO : All Pre-Need Companies SUBJECT : Filing of Pre-Need Annual Statements In connection with the filing of Annual Statements, the following guidelines shall be implemented: 1. Separate Annual Statement showing the financial condition of the pre-need company and Annual Statement of Trust Fund for each type of plan. HTcADC 2. The Annual Statements shall be on legal size bond paper (8 1/2 x 14 inches), using either Times New Roman font size # 12 or Arial font size # 10 and must be bound with ring binding. 3. Enclosed as Annex "A" is the updated list of the required documents and other schedules which shall form part as separate attachment in the submission of the Annual Statements. 4. Enclosed as Annex "B" is the Table of Contents of the Annual Statements showing the Summary of Investment for the year ended December 31, 20__ and Certification, Notarized and Sealed on pages 48 and 49, respectively. 5. The Seriatim List of In-Force policies and List of Availing Plan for the Succeeding Year (Exhibits 6 and 7 respectively) shall be filled in summary form in the Annual Statement and the details/breakdown shall be submitted in soft copies (CD or USB). HEITAD 6. The exact formats, columnar headings and footnote instruction found in every page of the Annual Statement (two (2) copies) including the Annual Statements of Trust Fund (one (1) copy each) for each type of plans shall be strictly observed . 7. Submission which are not in accordance with the required pro-forma template and with missing data/information and incomplete attachments shall not be accepted . All companies are hereby reminded to file the Annual Statements on or before 30 April of each year to avoid penalty of P5,000.00 per day of delay. Please be guided accordingly. (SGD.) EMMANUEL F. DOOC Insurance Commissioner ANNEX A List of Documents to Be Submitted to Form Part of the Annual Statements of ______________________________________________ For the Year Ended 31 December 20___ 1. Two (2) copies of the following __ a. Audited Financial Statements (AFS) duly stamped by the Bureau of Internal Revenue (BIR); __ b. Adjusted Trial Balance (ATB) signed by the Chief Accountant; __ c. Reconciliation Statement of the AFS versus the ATB figures; __ d. Detailed Reconciliation Statement of Trust Fund Balances per Trustee Bank(s) versus AFS/AS; __ e. Soft copies of the Annual Statements and all its schedules including Annual Statements of Trust Funds per type of plan. 2. One (1) copy of each of the following : __ a. Annual Pre-need Reserve Valuation Report together with: __ 1. Certification by the actuary and/or any accountable officer of the company on the actuary and completeness of the in-force files used in valuation of reserves; and __ 2. Certification on the prudent adequacy of the Pre-need reserve that it shall provide at least the guaranteed contractual benefits under each pre-need contract of the company. aScITE __ b. List of current members of board of directors and officers, their respective addresses, position and committee membership; __ c. Minutes of meetings of the board and executive committees, including board resolutions made during the year; __ d. Soft copies of the supporting details of Exhibit 6 and Exhibit 7; __e. Sworn Statement from the responsible officers of the company stating that: "Any deficiency in Trust Funds has been duly addressed, attaching the necessary documents as proofs thereof". __ f. Sworn Statement of the company's insurer certifying the coverage on the life insurance policies or guarantees on premium payments assumed by the insurance company, indicating the extent, term and duration of such coverage/guarantees; g. Documents supporting the accounts held as corporate assets: __ 1. Certification of Custodian for Petty Cash Fund, Revolving Fund, etc.; __ 2. Bank statements, passbooks and certificates of all current, savings and time deposits accounts respectively as of 31 December 20__ and 31 January 20__ together with bank reconciliation statements using the adjusted balance method thereof, if applicable; __ 3. Official receipts, bank validated deposit slips and bank statements to support year-end deposit in transit, if any; __ 4. Confirmation of Sales of Investment in Bonds and Treasury Bills (Government Securities) together with Statement of Securities Account of BTr-ROSS as of 31 December 20__, if any; HEITAD __ 5. Statement of Holdings as of year-end from the company's custodian bank for dollar denominated bonds, if any; __ 6. Statement of Accounts as of year-end from Philippine Depository and Trust Corporation (PDTC) for scriptless stock investments; __ 7. Statement of Net Asset Value (NAV/pu) of Unit Investment Trust Fund (UITF), Mutual Funds and related investments; __ 8. Report from a licensed real estate appraiser accredited by the Philippine Association of Real Estate Appraisers to support any increase or decrease in fair value of real estate properties; __ 9. Documents supporting investments in commercial papers; __ 10. Documents supporting mortgage loans and other loans accounts; __ 11. BIR tax returns/payments for the year on Income Tax, Documentary Stamp Tax, VAT and other taxes; __ 12. Other documents to support corporate asset and liability accounts. ATICcS ANNEX B Annual Statement for the Year Ended December 31, 20__ _________________________________________________ Table of Contents Pages 1 Company Information Exhibits: 2 1 Balance Sheet 3 2 Income Statement 4 3 Summary of Monthly Deposits to the Trust Fund-Per Trustee, Per Plan 5 4 Summary of Monthly Withdrawals from the Trust Fund-Per Trustee, Per Plan 6 5 Summary of Monthly Sales 7 6 Seriatim List of In-Force Policies 8 7 List of Availing Plans for the Succeeding Year 9 8 List of Claims/Benefits Filed Schedules: 10 1 Investments in Trust Funds 11 2 Insurance Premium Fund (IPF) 12 2-1 IPF-Government Securities 13 2-2 IPF-Cash on Hand and in Banks 14 2-3 IPF-Mutual Funds/UITF 15 2-4 IPF-Short-term Investments 16 2-5 IPF-Corporate Bonds 17 2-6 IPF-Mortgage Loans 18 2-7 IPF-Planholders' Loans 19 2-8 IPF-Stocks 20 2-9 IPF-Real Estate 21 2-10 IPF-Other Investments 22 2-11 IPF-Accrued Investment Income 3 Corporate Assets 23 3-1 Corporate Assets-Government Securities 24 3-2 Corporate Assets-Cash on Hand and in Banks 25 3-3 Corporate Assets-Mutual Funds/UITF 26 3-4 Corporate Assets-Short-term Investments 27 3-5 Corporate Assets-Corporate Bonds 28 3-6 Corporate Assets-Mortgage Loans 29 3-7 Corporate Assets-Planholders' Loans 30 3-8 Corporate Assets-Stocks 31 3-9 Corporate Assets-Real Estate 32 3-10 Corporate Assets-Other Investments 33 3-11 Corporate Assets-Accrued Investment Income 34 3-12 Corporate Assets-Accounts/Notes Receivable 35 3-13 Corporate Assets-Property and Equipment 36 3-14 Corporate Assets-Inventories 37 3-15 Corporate Assets-Other Assets 38 4 Insurance Premium Reserve 39 5 Other Reserves 40 6 Planholders' Benefits Payable 41 7 Planholders' Deposits 42 8 Counselors' Bond Reserves 43 9 Accounts/Notes Payable 44 10 Taxes Payable 45 11 Accrued Expenses 46 12 Other Liabilities 47 13 Stockholders' Equity Account 48 Summary of Investment at Cost for the year ended December 31, 20___ 49 CERTIFICATION, NOTARIZED AND SEALED Date of Filing: __________________________ Checked by: __________________________ IC Representative/Examiner