Q. What effect does the Liquidation Order and Liquidation Plan have on pre-need contracts, insurance policies and claims?
Consumers with pre-need contractual obligations should continue to honor their obligations under the agreement. This means that if a consumer has an NPS contract or a Lincoln Memorial or Memorial Service insurance policy that requires periodic payments, the consumer should continue to make those payments in order to keep the contract or insurance policy in force and to ensure that any insurance policy is covered under the Plan. Consumers with paid-up NPS contracts or policies do not need to do anything.
As described above, funeral providers should not expect to receive additional non-insurance policy compensation in the form of contract growth payment from NPS under pre-need contracts or other arrangements. Also as described above, there was a temporary hold on claims payments until the Plan went into effect on October 23, 2008. The Liquidator understands that both the absence of growth payments and the temporary hold on claims payments pose a hardship to some funeral homes, and is doing everything possible to ensure the least disruption possible to affected parties. Persons with unpaid claims under pre-need funeral contracts not associated with insurance policies of Lincoln Memorial or Memorial Service will need to file a claim with NPS in accordance with the claims filing process in the Texas Insurance Code. Further information will be available soon about the method and deadline for filing claims.
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Q. If Lincoln Memorial or Memorial Service provides insurance coverage that secures pre-need funeral contracts, is the coverage in jeopardy?
No, that insurance coverage is not in jeopardy. Under the Plan, the individual state guaranty associations will pay for policy obligations, according to the terms of the Plan, provided that the insurance policy is still in effect.
If the pre-need contract or insurance policy requires continuing payments, then consumers should continue making these payments (and bring any late payments current), otherwise their insurance coverage could be cancelled.
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Q. Is a Funeral Provider still required to honor the pre-need contract?
Yes. Neither the Agreed Order placing these companies into receivership nor the Liquidation Order alters the obligations that funeral homes have to consumers.
Although inflation or growth payments under the NPS contracts will not be paid under the liquidation plan, funeral homes are still obligated to honor the preneed burial contracts at the time of need. In Texas, the funeral home still has a contractual liability to honor the pre-need funeral contract by furnishing the described benefits specified in the contract, or provide their equivalent in quality, for the contract price as promised.
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Q. What should I do if a Funeral Provider is refusing to honor a pre-need contract?
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.
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Q. What if I need to change my address?
Any address changes must be received in writing. Once we receiver you request, we will also have the accounting department update their records as well.
Please mail your request to:
Lincoln/Memorial Service
Attn: Claims Department
P.O. Box 160050
Austin, Texas 78716
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Q. What if I want to change my beneficiary?
Requests to change your beneficiary must be received in writing. Your request wll be processed in accordance with the Liquidation Plan.
Please mail your request to:
Lincoln/Memorial Service
Attn: Claims Department
P.O. Box 160050
Austin, Texas 78716
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Q. What if I want to change Funeral Providers?
All requests for Change in Provider must be in writing.
Please mail your request to:
Lincoln/Memorial Service
Attn: Claims Department
P.O. Box 160050
Austin, Texas 78716
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Q. What if my policy or contract has lapsed?
Any request for reinstatement of a policy needs to be submitted in writing. We will review your specific request and make a decision based on the terms of the policy and in accordance with the Liquidation Plan.
Please mail your request to:
Lincoln/Memorial Service
Attn: Claims Department
P.O. Box 160050
Austin, Texas 78716
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Q. What if I want to cancel my policy or contract?
Requests to cancel your policy or contract must be received in writing. We will then review your request. Whether you receive a return of monies will be subject to the coverage provided by the Insurance Guaranty Association, the terms of your policy or contract and in accordance with the Liquidation Plan.
Please mail your request to:
Lincoln/Memorial Service
Attn: Claims Department
P.O. Box 160050
Austin, Texas 78716
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Q. Do I need to continue making my premium payments?
The Insurance Guaranty Associations have assumed the responsibilities for the in-force policies of the insolvent companies. In order to receive benefits from the Insurance Guaranty Associations, premiums must continue to be paid to keep the coverage in-force.
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Q. Why have I not received a Paid in Full Certificate?
Paid in Full Certificates are no longer available. On written request, we can provide you with a letter advising that there is a zero balance due.
Please mail your request to:
Lincoln/Memorial Service
Attn: Claims Department
P.O. Box 160050
Austin, Texas 78716
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Q. What kind of action will the SDR take against individuals who contributed to this situation?
A great deal of information is being reported about the activities of certain individuals who were in charge of the companies prior to receivership, and the actions taken by the Companies prior to receivership. The SDR will be examining company transactions that took place prior to the receivership. The SDR will take appropriate steps, and will explore all viable avenues to marshal assets for the benefit of funeral homes and other creditors.
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Q. What is the best way to receive continuing updates or to find out more information?
Consumers and funeral homes monitoring the situation should do so through 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 www.lincolnmemoriallife.com. |
