Memorial Service Life and Lincoln Memorial Life Resource Page
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As of December 1, 2011, the commissioner of insurance for the state of Texas, acting in her capacity as receiver for Lincoln Memorial Life Insurance Company, Memorial Service Life Insurance Company, and National Prearranged Services, Inc. has designated Jo Ann Howard & Associates, P.C. as the new special deputy receiver for the companies. Donna J. Garrett, the original special deputy receiver, has retired.
May 2012 update as:
Investors Heritage assumed the covered obligations of Memorial Service Life Insurance Company in July 2011. Direct all questions about a Memorial Service Life policy or the related GNPS prepaid funeral benefit contract to:
Investors Heritage Life Insurance Company
P.O. Box 717
Frankfort, Kentucky 40602
Phone: 1-800-422-2011
Fax: 1-502-875-7084
Additional information may be obtained on the Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association www.txlifega.org/. (PDF)
The receivership court issued an order on June 1, 2010, addressing the handling of NPS preneed contracts, which are not associated with or backed by a Lincoln or Memorial Service annuity or insurance policy. These contracts are often referred to as “orphan contracts.” The application addressed the handling of contract payments received since the date of liquidation, September 22, 2008. A copy of the application and order are posted to the estate website under the "Legal Docs" tab at www.lincolnmemoriallife.com/.
Frequently Asked Questions
What is the status of the orphan contracts in May 2012?
There are approximately 5,400 orphan contracts, the majority of which are paid in full. However, approximately 600 are currently in a paying status. All orphan contract payments made to
Since the liquidation date of September 22, 2008, NPS or the receivership estate have been secured in a separate bank account and are not used in the administration of the receivership estates.
The approved application:
- provides that orphan contract holders will be deemed to have timely filed a proof of claim in the NPS receivership estate,
- provides that all contract payments made on or after liquidation date of September 22, 2008, will be deemed secured claims,
- authorizes the special deputy receiver to use the secured funds to pay funeral service providers the lesser of the contract benefits or the amount paid post liquidation upon the death of a orphan contract holder,
- affords an orphan contract owner the option to request a return of payments made post liquidation in lieu of receiving contract benefit payments at death and apply interest earned by the secured funds to each orphan contract. All refund requests would require review/approval by the office of the special deputy receiver prior to issuing a refund. Any refund approved by the special deputy receiver would include payments made from September 22, 2008, forward plus interest accrued thru end of the month preceding the date of refund request.
How do I know if I have an orphan contract?
Contact the special deputy receiver's office at 1-800-334-3851 to verify contract status.
What happens to the money I paid in if I get coverage by Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association?
If the association affords coverage, the funds paid from September 22, 2008, forward will be transferred to the association.
What happens to my money if I never get association coverage?
The application affords the orphan contract holder two options:
- The consumer may take no action and all payments made after September 22, 2008, plus interest accrued on those funds will be paid to the funeral service provider in accordance with the terms of the contract at the time of need. (See application section 4.1.4(b))
- The consumer may request a refund of payments made post liquidation (September 22, 2008) and upon approval of the special deputy receiver the consumer will receive all payments made since September 22, 2008, plus interest that has accrued on those funds. Upon payment the preneed contract would be terminated and no further benefits available from the estate or association.
What do I need to do to get a refund?
Orphan contract holders have been provided forms and instructions on how to request a refund of post liquidation payments and interest. Contact the special deputy receiver's office for any additional forms and/or to check the status of a refund request.
What happens to my contract if I elect to receive a refund?
Your preneed funeral contract is terminated and there is no further obligation to any funeral service provider upon the death of the contract owner.
Most of my contract was paid for before receivership or my contract was paid in full before receivership (September 22, 2008).
How do I get my money back?
NPS is insolvent and there are no funds available to refund pre-liquidation payments.
This application provides that you will automatically have a timely filed proof of claim in the NPS receivership estate. Claims for pre-liquidation payments are class five claims. It is not known at this time if there will be sufficient assets to make a distribution to any particular class of claimants.
What about death claims for orphan contract owners?
For death claims that occur prior to liquidation date of September 22, 2008, the funeral service providers, next of kin or contract assignees may file a claim against the NPS estate for any preneed funeral contract benefits. Such claims will be treated as class five creditor claims. A funeral service provider must file a proof of claim to protect any rights they have relating to orphan contracts. For claims that occur after the liquidation date of September 22, 2008, the special deputy receiver is authorized to use the secured funds to pay funeral service providers the lesser of the contract benefits or the amount paid post liquidation.
What kind of action will the special deputy receiver take against individuals who contributed to this situation?
The special deputy receiver, in conjunction with the National Organization of Life Health Guaranty Associations filed a lawsuit in federal district court in St. Louis, Missouri against a number of individuals and entities alleged to be responsible for the insolvency of the companies. In addition, the special deputy receiver has cooperated with and responded to requests for information and documents from state and federal investigators. A federal grand jury in St. Louis indicted J. Douglas and Brent Cassity, along with others, for violations of federal statutes relating to mail, wire and insurance fraud. A link to the special deputy receiver’s federal court lawsuit and the federal indictments is available under the “Legal Document” tab at www.lincolnmemoriallife.com/.
For More Information or Assistance
For answers to general insurance questions or for information on filing an insurance-related complaint, call the Consumer Help Line between 8 a.m. and 5 p.m., Central time, Monday-Friday, or visit our website
1-800-252-3439
463-6515 in Austin
www.tdi.texas.gov
Prevent Insurance Fraud
Insurance Fraud Toll-Free Hotline - 1-800-252-3439
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.texas.gov
For more information contact:
Last updated: 01/02/2013
