Texas Department of Insurance

Memorial Service Life and Lincoln Memorial Life Resource Page

September 15, 2009

Backgroung Information | FAQs | Prevent Insurance Fraud | File an Insurance Complaint | Press Releases

Update as of 9/10/2009: The NOTICE OF RECEIVERSHIP AND CLAIMS FILING DEADLINES and PROOF OF CLAIM Form were mailed to potential claimants beginning July 1, 2009 through August 15, 2009. If you did not receive a Notice and Proof of Claim form, the forms are available for download from the Special Deputy Receiver’s Website, http://www.lincolnmemoriallife.com/, under the NOTICE tab. Generally, no receivership estate claims will be reviewed until after the claim filing deadline of January 23, 2010. The State Life and Health Insurance Guaranty Associations (IGAs) continue to pay death benefits on life insurance policies as claims are presented. Consumers do not need to file a Proof of Claim with the SDR to receive IGA payment under life insurance policies and annuities of Lincoln Memorial or Memorial Service. The Proof of Claim form and claims filing deadline would apply to all claims other than IGA claims; including vendor/supplier claims, and claims by funeral homes for “growth” or “inflation” or related to contracts that are not secured by life insurance policies. Questions regarding the Notice or the Proof of Claim filing may be directed to 1-866-991-3710.

Background Information   

The Texas Department of Insurance (TDI) placed Lincoln Memorial Life Insurance Company (Lincoln Memorial), Memorial Service Life Insurance Company (Memorial Service), and National Prearranged Services, Inc. (NPS) (collectively, the "Companies") into receivership for rehabilitation under Chapter 443 of the Texas Insurance Code. The Travis County District Court issued an Agreed Order Appointing Rehabilitator and Permanent Injunction ("Agreed Order") on May 14, 2008. Representatives of the Companies consented to the receivership and signed the Agreed Order.

On September 22, 2008, the Companies were placed in Liquidation via an Order Appointing Liquidator, Order Approving Liquidation Plan and Permanent Injunction (“Liquidation Order”) issued by the Texas Receivership Court, and the Liquidation Plan became effective on October 23, 2008.

TDI is providing consumers with answers to Frequently Asked Questions and other information about the actions taken in Texas. However, more detailed information is available at http://www.lincolnmemoriallife.com/. Additional information for the Texas funeral home industry is available from the Texas Department of Banking.

This web page will be updated as new information becomes available.

Frequently Asked Questions   

Q: What Companies are involved in the Receivership?
A: Lincoln Memorial Life Insurance Company ("Lincoln Memorial") is a Texas domiciled life insurance company licensed in 44 states.

Memorial Service Life Insurance Company ("Memorial Service") is a stipulated premium life insurance company licensed only in Texas.

National Prearranged Services, Inc. ("NPS") is a Missouri corporation affiliated with Memorial Service and Lincoln Memorial. NPS sold pre-need funeral contracts.

Q: Who is in charge of Lincoln, Memorial and NPS?
A: Donna J. Garrett has been appointed as the Special Deputy Receiver ("SDR") to administer all three Companies. The SDR is in charge of the Companies, and she and her staff are on-site at the company offices.

On May 14, 2008, Memorial, Lincoln and NPS consented to be placed in receivership by a Texas court by signing an Agreed Order for Rehabilitation ("Agreed Order"). The Commissioner of Insurance for the State of Texas was named Rehabilitator ("Rehabilitator") for the companies, and has now been named as Liquidator ("Liquidator") for the Companies. The Liquidator has taken over all the powers of the Companies' directors, officers and managers.

For more information, please review the SDR´s website at http://www.lincolnmemoriallife.com/.

Q: What is the effect of the Order Appointing Liquidator, Order Approving Liquidation Plan and Permanent Injunction ("Liquidation Order")?
A: The Liquidation Order states that the Companies are insolvent, and appoints the Commissioner of Insurance as Liquidator for the Companies. This means that all assets of the Companies will be liquidated under a Plan approved by the court, and used to pay liabilities according to the priorities set out in Tex. Ins. Code § 443.301.

Under the Liquidation Plan, individual state guaranty associations will pay the original death benefit for life insurance policies issued by Memorial Service or Lincoln Memorial, ignoring any policy loans, assignments, conversions, and other insurance policy transactions not authorized by the consumer that may have taken place. Payment will be to the funeral home or other burial service providers when burial services are provided.

Obligations in pre-need contracts that are not funded by an insurance policy (such as cost of living or inflation growth adjustments) will not be paid under the Plan because insurance guaranty associations are prevented by their laws from paying non-insurance obligations.

Q: What should I do if a funeral provider is refusing to honor a pre-need contract?
A: If a funeral provider is refusing to honor a pre-need contract, you should contact the SDR and the pre-need regulator in your state. In Texas, contact the Texas Department of Banking at (512) 475-1285 or toll-free at (877) 276-555.

Q: What is the best way to receive continuing updates or find out more information?
A: Consumers and funeral homes monitoring the situation should do so through the SDR and the appropriate regulatory entities, since information from other sources may be unreliable or inaccurate.

The SDR may be contacted by phone at 1-800-334-3851. Call volume is very high, but staff is working diligently to assist you with your questions.

Inquires may also be sent by email to info@LincolnMemorialLife.com. Information and copies of relevant Texas court documents are also available on the website at http://www.lincolnmemoriallife.com/.

Prevent Insurance Fraud   

Insurance Fraud Toll-Free Hotline - 1-888-327-8818

Online Fraud Reporting

Secure Transmission, Fast, Comprehensive, Easy Data Entry

Online Fraud Reporting for Insurance Companies
Online Fraud Reporting for Consumers

File an Insurance Complaint   

Read about TDI's consumer complaints process in the Helping You With Your Insurance Complaint publication. You may also e-mail, mail, or fax your complaint along with copies of your supporting documents to

Texas Department of Insurance
Consumer Protection Program (MC 111-1A)
P.O. Box 149091
Austin, TX 78714-9091
Fax: 512-475-1771
E-mail: ConsumerProtection@tdi.state.tx.us

Press Releases   

• Unauthorized E-mail Related to Receivership of Lincoln Memorial and Memorial Service Life Insurance Companies (May 28, 2009)
• State Guaranty Associations to Pay Claims Under Liquidation Plan for Texas Insurance Companies, Pre-Need Funeral Contract Company (October 31, 2008)
• Texas Department of Insurance and NOLHGA Announce Important Developments in Plan to Protect Insurance Consumers (July 22, 2008)
• Texas Department of Insurance and NOLHGA Announce Plan to Protect Insurance Consumers (July 10, 2008)

For more information contact: