Officials at the Texas Department of Insurance say they are working closely with guaranty funds to protect consumers caught up in problems at 3 related companies in the funeral insurance market.

Texas department officials say they hope to negotiate a consumer protection plan with the National Organization of Life and Health Insurance Guaranty Associations, Herndon, Va., and file it with the Texas receivership court later this summer.

The negotiations concern shareholders of Lincoln Memorial Life Insurance Company and Memorial Service Life Insurance Company, funeral insurers affiliated with National Prearranged Services Inc., Clayton, Mo.

Texas placed the companies in receivership in May.

The companies have insured about 200,000 consumers, Texas department officials estimate.

The Texas department has appointed Donna Garrett to be the special deputy receiver for the companies.