Texas Works With National Group to Help Customers of Failed Insurers

The Texas Department of Insurance (TDI) is working closely with the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) to protect consumers with insurance policies issued by Lincoln Memorial Life Insurance Company (Lincoln Memorial) and Memorial Service Life Insurance Company (Memorial Service).

Most of these insurance policies are related to pre-need funeral contracts purchased by consumers through National Prearranged Services Inc. (NPS). All three companies were placed in receivership in Texas on May 14, 2008.

“The goals of this consumer protection plan are pretty straightforward,” said Texas Insurance Commissioner Mike Geeslin, who is the Receiver for the companies. “Consumers should get the benefit of the insurance policy they paid for, and funeral homes get paid from the insurance policy benefits when they provide burial services to the consumer. I would like to commend NOHLGA and its member guaranty associations for stepping forward to help protect consumers in this matter.”

“NOLHGA and its member guaranty associations have been working very closely with the Texas Department of Insurance on the plan,” said NOLHGA President Peter Gallanis, noting that Lincoln Memorial and Memorial Service have more than 200,000 insureds residing in all 50 states.

It is anticipated that the consumer protection plan will be filed with the Texas receivership court later this summer.

The Receiver has contracted with Donna Garrett to serve as Special Deputy Receiver (SDR) of Lincoln Memorial, Memorial Service and NPS.

Source: Texas Department of Insurance, www.tdi.state.tx.us