A Texas state court has placed a single-state funeral insurer into receivership.
The insurer, Texas Memorial Life Insurance Company, Austin, Texas, will be liquidated, according to officials with the Texas Department of Insurance.
Texas Memorial, which changed its name from Owens-Brumley Funeral Insurance Company in 1996, operated only in Texas, and it existed mainly to fund the pre-need funeral benefit contrqcts sold by an affiliate, Memorial Administrators L.L.C., officials say.
Memorial Administrators and TME Holdings Inc., the holding company for Texas Memorial and Memorial Administrators, also were placed into receivership, officials say.
The special deputy receiver for Texas Memorial, Memorial Administrators and TME is Robert Loiseau of Jack M. Webb & Associates Inc., Houston, officials say.
The Texas life guaranty fund will provide protection for policyholders, but funeral providers are unlikely to receive any additional compensation for pre-need contract growth, officials say.