Rule 12. Amendments to the Pre-Need Plan Contract or Other

Documents Pertinent to Registration 

12.1.  No Pre-Need Plan contract, trust agreement, or other documents pertinent to the registration of the plans shall be amended or modified without prior approval of the Commission, and such amendment or modification shall neither affect adversely the Planholders thereof nor impair any term or condition in the Pre-Need Plan or other related documents.

12.2.  Applications for price increase of Pre-Need Plans without any changes in benefits and actuarial assumptions shall not be subjected to actuarial review, and may be filed by submission of a duly notarized Commission prescribed actuarial certification that there are no changes in plan benefits and assumptions, provided, that there are no trust fund deficiencies/violations; and provided further, that the order rendering the Registration Statement effective was issued more than a year but not exceeding three (3) years from the date of the approval of the original petition; and provided, finally, that a revised price schedule is simultaneously submitted.

12.3.  For purposes hereof, a petition for price increase without any change in benefits and assumptions refers to a plan whose promised benefits have not been changed, both in manner and timing of payment, and whose actuarial formulations have not been revised in arriving at a new price increase causing the original assumptions of trust and deposit rates, interest rates, expense rates, inflation rates, and availment and decrement rates used in the original pricing to remain unchanged.

12.4.  The price increase approved by the Commission shall only apply to Pre-Need  Plans sold after the approval sought under this Rule shall have been granted and shall in no case apply to plans sold during the pendency of the application herein.

12.5.  The processing of applications for price increase without any change in benefits  or actuarial assumptions shall be completed within twenty (20) working days from receipt of complete application and payment of filing fee.

12.6.  Any other amendments which involve a change in benefits or the contract or actuarial assumptions shall require the issuer to file a new Registration Statement, specifically providing the requirements under Rule 4.1, pars. 1- 4 ( l-p ), 5 - 7, Rules 4.2-4.4 

12.7.  The processing of applications for any other amendments which involve a change in benefits or the contract  or actuarial assumptions shall be completed within thirty (30) working days from receipt of complete application and payment of filing fee.

12.8.  The processing of applications for amendments other than those mentioned above which do not involve a change in benefits  or terms of the contract or  actuarial assumptions shall be completed within twenty (20) working days from receipt of complete application and payment of filing fee.

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