Texas Department Places Insurers in Receivership

The Texas Department of Insurance (TDI) has placed Memorial Service Life Insurance Company (Memorial Service), Lincoln Memorial Life Insurance Company (Lincoln Memorial), and National Prearranged Services, Inc. (NPS) into receivership for purposes of rehabilitation under Texas Insurance Code, Chapter 443. Representatives from Memorial Service, Lincoln Memorial and NPS have consented to the receivership and signed an agreed order on May 14, 2008.

The Travis County 250^th Judicial District Court issued a permanent injunction restraining the companies and their agents from conducting the business of the companies and restraining any other parties from taking any actions against their property. The Commissioner of Insurance has been designated as the Receiver and will appoint a Special Deputy Receiver to perform the duties of the Receiver.

The Receiver, through his appointed Special Deputy Receiver, will take any actions that are deemed necessary or appropriate and will control all property belonging to Memorial Service, Lincoln Memorial and NPS. The Special Deputy Receiver is authorized to pay claims and to conduct the business of Memorial Service, Lincoln Memorial and NPS.

Claimants should continue submitting claims in the ordinary course of business, and consumers should continue to make premium payments on any insurance policies with Lincoln Memorial or Memorial Service if they want those policies to remain in force.