The Missouri Board of Embalmers and Funeral Directors has obtained a settlement agreement that will lead to the revocation of a company’s Missouri pre-need seller license, officials say.
The company, National Prearranged Services Inc., Clayton, Mo., is affiliated with Lincoln Memorial Life Insurance Company and Memorial Service Life Insurance Company.
National Prearranged Services now “is prohibited from selling any new pre-need contract in the state of Missouri,” officials say.
The Missouri embalmers board revoked the company’s pre-need seller license because of “the serious questions that have been raised regarding NPS’ financial stability,” officials say.
In May, the Missouri Department of Insurance, Financial Institutions and Professional Registration announced the appointment of a special counsel to investigate the causes of what regulators say are financial difficulties at National Prearranged Services and its insurance company affiliates.
Representatives from National Prearranged Services were not immediately available to comment on the settlement agreement.
National Prearranged Services and its affiliates have promised to provide $1 billion in funeral benefits for about 150,000 customers, according to Texas insurance regulators.