A state court in Travis County, Texas, has approved a liquidation plan for 2 funeral insurers and a funeral services sales affiliate.
The order affects Memorial Service Life Insurance Company and Lincoln Memorial Life Insurance Company of Texas.
The order also affects National Prearranged Services Inc., Clayton, Mo., an affiliate of the insurers that helped distribute their insurance through funeral homes and other sellers.
The liquidation plan was developed by Donna Garrett, the insurance companies’ special deputy receiver; the Texas Department of Insurance; and the National Organization of Life and Health Insurance Guaranty Associations, Herndon, Va.
The plan calls for state guaranty associations to pay the original insurance policy death benefits for Lincoln Memorial and Memorial Service policyholders.