December 7, 1995
SEC-IRD * MEMORANDUM CIRCULAR NO. 04-95
RE : Limiting the Insurance Benefit Features of Pre-Need Plans
The Securities and Exchange Commission is hereby directing the removal of insurance benefit features of pre-need contracts, which through time, have evolved to look like quasi-insurance products rather than securities that are subject to regulation by the Commission. Only credit life and disability waiver features in pre-need plans shall be accepted to assure the continued good status of the pre- need contract until maturity.
This circular, which shall not affect pre-need contracts that are already enforced and outstanding, shall take effect on 01 January 1996. cdphil
(SGD.) PERFECTO R. YASAY, JR.
Acting Chairman
