The Insurance Commission (IC) has shut down the operations of two non-life insurance firms and placed them under conservatorship.
The firms that were put under conservatorship were BF General Insurance Co. Inc., and Far Eastern Surety & Insurance Co. Inc.
In a letter date April 11, the regulator issued a cease and desist order (CDO) to BF General Insurance Co. Inc., preventing the firm from “taking new risk and/or renewal business of any kind or character.”
The IC advised BF General Insurance Co. Inc. that it temporarily appointed lawyer John Apatan, chief of the Conservatorship, Receivership and Liquidation Division, as ex-officio conservator of the company.
A conservator is mandated to immediately take charge of the company’s assets, liabilities and management, collect all money and debts due it and exercise all the powers necessary to preserve its assets, reorganize its management and restore its viability.
BF Gen claimed that it is a prime provider of enhanced non-life insurance products and services, such as fire and lightning, motorcar, personal accident, marine cargo, engineering and surety.
Meanwhile, in relation to a CDO dated March 23, against Far Eastern Surety & Insurance Co. Inc., the regulator appointed lawyer Mila Teresita Racelis as conservator.
Latest Insurance Commission data showed that as of April 18 this year, 43 insurance companies had been placed under conservatorship, liquidation, or receivership.
Another 32 pre-need firms had been placed under conservatorship as of April 16, while six firms were under court rehabilitation as of end-2015.