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August 14, 2008 at 11:13 AM
Regulators are proceeding with efforts to shut down 2 sister funeral insurers and a marketing company affiliate.
Donna Garrett, the special deputy receiver of Lincoln Memorial Life Insurance Company, Memorial Service Life Insurance Company and National Prearranged Services Inc., Clayton, Mo., says she has filed a liquidation plan with the Texas receivership court.
The plan was developed by the special deputy receiver, the Texas Department of Insurance and the National Organization of Life and Health Insurance Guaranty Associations, according to Texas department officials.
The plan calls for state guaranty associations to pay the original insurance policy death benefits for Lincoln Memorial and Memorial Service policyholders.
The guaranty associations would not cover inflation growth adjustments or other riders or features that are not legally classified as insurance obligations, according to the special deputy receiver and officials with the Texas department and NOLHGA.
The adjustments “are not paid under the plan because guaranty associations are prevented by their laws from paying non-insurance obligations,” officials say.
The plan will take effect after the court approves it, officials say.
