By: T. Scott Gilligan, OFDA General Counsel
The problems confronting National Prearranged Services, Inc. (NPS) and its affiliated insurance company, Lincoln Memorial Life Insurance Company (Lincoln Memorial), continue to mount. In the States of Ohio, Illinois, and Iowa, NPS and/or Lincoln have either been ordered by state authorities or have voluntarily agreed to stop issuing preneed insurance policies or entering into preneed contracts. The Ohio Department of Insurance has suspended Lincoln Memorial's authority to do business in Ohio because its reported loss of over $4 million for the first nine months of 2007 has placed it under the statutory reserve and surplus requirements of Ohio law.
OFDA is aware that Lincoln Memorial is being investigated by the Texas Department of Insurance where it is domiciled. We have made several inquiries to the Texas Department of Insurance, but have not yet received any substantive responses concerning the results of the investigation. Other state funeral associations as well as NFDA continue to monitor the situation and share information as it becomes available.
As soon as OFDA has received any additional information, we will update the membership. In the meantime, if members have questions, they may call Scott Gilligan at (513) 871-6332.