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 court approved Liquidation Plan, individual state guaranty associations will pay the original death benefit for life insurance policies issued by Memorial or Lincoln, 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.
Effective 7/1/2011 the covered obligations of Memorial Service were assumed by Investors Heritage Life Insurance Company. Obligations in pre-need contracts that are not funded by an insurance policy (such as cost of living or ... more.
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