The City Legal Office ordered the closure of an insurance company operating in Dumaguete City without mayor's permit and authority from the Securities and Exchange Commission.

Neil Ray Lagahit, city legal officer, said a notice of closure order will be immediately issued against Phil-Asia, which was given five days to voluntarily padlock its office.

Lagahit said it is the policy of the city government to require insurance companies to present certification of good standing from the SEC, before it is issued a mayor's permit. Clients of Phil-Asia Care Plans Inc. in Dumaguete and Oriental Negros were advised to file necessary civil action if they intend to recover their investments, the CLO said.

Juliet Bangayciso, of Purok Ipil-ipil, Mangnao, Dumaguete brought to the attention of the City Mayor's Office, the illegal operation of Phil-Asia Care Plans Inc., with office address at Real Street, Dumaguete.

She said her son has been covered by the life plan agreement since June 25, 2001.

However, upon inquiry with the SEC, they were told that Phil-Asia Care Plans Inc. had no more life plans to sell since December 1993 yet.

Lisa Beth Rico, SEC assistant director for Evaluation and Prosecution Division in Manila, told Bangayciso that the company had no dealer's license since 1996, and that, it is no longer authorized to solicit investments from the public or operate any branches other than to service plan holders.

Phil-Asia Care Plans Inc. president and chairman Vicente Afulgencia has a pending case at the Regional Trial Court in Mandaluyong City for violation of the Securities Regulation Code, Rico added.*JG

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