Rule 4. Registration Procedure 

4.1.    All Pre-Need Plans shall be registered by the issuer or its authorized representative by filing with the Commission six (6) copies of  the following : 

1.    Duly  accomplished Registration Statements 

2.    Board resolution authorizing the registration of applicant's securities 

3.    Opinion of independent counsel on the legality of the issue 

4.    Supporting documents: 

a.)    Latest Articles Of  Incorporation and By-Laws of the Issuer 

b.)    Trust agreement with the Trustee 

c.)    Copies of leaflets, brochures, press releases, handbills or other printed/typewritten/ mimeographed literatures which the issuer intends to distribute to the public 

d.)    Copies of  related contracts such as mortuary contracts, school contracts or other service providers’ contracts 

e.)    List of schools for traditional education plans, including current costs of   promised benefits 

f.)    Copies of agency contracts with general agents, agencies, counselors, and salesmen 

g.)    Curriculum vitae of Officers and Directors 

h.)    Photographs of the signatories to the Registration Statement taken not more than 30 days prior to the filing of registration statements 

i.)    NBI clearance of the Directors and Principal Officers of the issuer or current  passport 

j.)    Training Program for agents, agencies, counselors, and salesmen 

k.)    Application of  dealer’s license for initial registration    

l.)    Specimen of Plan contracts 

m.)    Plan application form 

n.)    Plan contract/agreement                 

o.)    Specimen copies of Group Master Policy for Group Credit Life and Group Yearly Renewable Term including copies   of  insurance riders for supplementary insurance benefits; sample copies of individual insurance certificates 

p.)    Detailed Price schedule showing minimum and maximum  pricing for the Notice and Order  

q.)    The written consent of the expert to be named as such and who has certified any part of the Registration Statement or any documents  included therein shall be secured and attached to the Registration  Statement 

5.    Audited financial statements accompanied by a long form audit report of the certifying auditors as of a date not more than ninety (90) days prior to the date of filing of the Registration Statement, with the balance sheet showing all the assets of the issuer, the nature and cost thereof whenever determinable, with intangible items segregated, including any loan to, or from any officer, director, stockholder or person directly or indirectly controlling or controlled by the issuer, or person under direct or indirect common control with the issuer, and all the liabilities and surplus of the issuer showing how and from what sources such surplus was created. 

If the above cannot be complied with, an unaudited financial statement as of a date not more than ninety (90) days prior to the date of filing of the Registration Statement, certified under oath by the principal officer of the company, or person performing similar functions, may be submitted.  And in addition, the latest audited financial statement accompanied by a long form audit report. 

6.    Latest interim financial statements for the month preceding the filing of the Registration Statement 

7.    Actuarial feasibility study with actuarial certification of SEC accredited pre-need actuary containing the following: 

i.)    A viability model which includes, but is not limited to, the  following: 

A)    Interest rate assumptions; 

B)    Withdrawal assumptions: lapses and surrenders 

C)    Schedule of Trust Fund deposits and projections; 

D)    Amount and costs of plan benefits including  the contingent benefit availment rates assumed for mortuary-type benefits; 

E)    Expenses and loadings including, but not limited to, all required fees and taxes, commissions, overrides, bonuses, premiums on insured benefits, and all other charges; 

F)    Schedule of Termination Values; 

G)    Schedule of Projected Reserve Liability Values; 

H)    Pricing schedule including how the gross pre-need price was generated with actuarial formulations. 

ii.)    A statement certifying that the actuarial formulations used in the viability model are in accordance with generally accepted actuarial principles and practices, existing laws, and pertinent rules and regulations of the Commission; 

iii.)    A statement of opinion that the actuarial assumptions used in the viability model are reasonable and appropriate for the plan; 

iv.)    A statement certifying that the plan price/s, scheduled trust fund contributions, projected reserve liabilities, and termination values are in accordance with generally accepted actuarial principles. 

v.)    A statement certifying that the actuary has reviewed  the provisions of the plan contract relative to its benefits and guarantees which have been quantified and considered in the pricing, reserve valuation, trust fund contribution, and termination values; 

vi.)    A statement of opinion that all insurance benefits included in the plan agreement are covered under insurance contract(s) with a duly licensed insurance carrier.             

vii.)    Actuarial notes on the plan description, formulations   and assumptions used in the viability model for the complete duration of the plan;           

4.2.    The Registration Statement shall be signed by the issuer’s Chief Executive Officer or Chief Operating Officer or Chief Finance Officer or a Corporate Officer performing similar functions.  

4.3.    The Registration Statement shall be properly completed – all items shall be answered; provided that items which are not applicable shall be filled with “n.a.”.  If the issuer is selling two (2) or more types of Pre-Need Plans, the amount and number for each type of plan to be registered shall be specified.  Where applicable, all answers shall be consistent with those stated in the actuarial study submitted under Rule 4.1, paragraph 7 of this Rule. 

4.4.    Upon filing of the Registration Statement, the issuer shall pay the filing fee as prescribed by the Commission, and the act of such filing shall be immediately published by the Commission at the expense of the issuer, in two (2) newspapers of general circulation in the Philippines, once a week for two (2) consecutive weeks, reciting that a Registration Statement for the sale of such plans has been filed, and that the Registration Statement, as well as the papers attached thereto, are open for inspection during business hours. 

4.5.    Processing of applications for registration of new plans shall be completed within forty-five (45) working days from receipt of complete application and payment of fees. 

4.6.    If, at any time, the information contained in the Registration  Statement  is or has become materially misleading, incorrect, inadequate or incomplete or the sale or offering for sale of the Pre-Need Plans covered thereby tends to work a fraud or prejudice to the investing public, the issuer shall immediately file an amendment to the Registration Statement.  Failure to do so shall cause the application of  Rule 9.1.

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