On June 10, 2009, the State of Texas placed Texas Memorial Life Insurance Company, Memorial Administrators, LLC d/b/a Texas Memorial Administrators, LLC and TME Holdings, Inc. into permanent receivership for the purpose of liquidation and the Commissioner of Insurance was appointed as Permanent Receiver. The suit creating the receivership proceeding was filed under Cause No. D-1-GV-09-000904 in the 345th District Court of Travis County, Texas. After the liquidation order was entered, the Commissioner appointed Jack M. Webb & Associates, Inc. as Special Deputy Receiver.
Because Texas Memorial Life Insurance Company was found to be insolvent, the Texas Life, Accident, Health and Hospital Services Insurance Guaranty Association assumed liability for covered policy obligations from the date of receivership through July 31, 2010. Beginning August 1, 2010 Texas Memorial Life Insurance Company's policies and annuity contracts were assumed by Investors Heritage Life Insurance Company. On the same date Texas Memorial Administrators' prepaid funeral benefit contracts were assigned to Investors Heritage by the Special Deputy Receiver. Investors Heritage can be contacted at:
Investors Heritage Life Insurance Company 200 Capital Avenue PO Box 717 Frankfort, KY 40602 (800) 422-2011 Customer Service
From and after August 1, 2010 Investors Heritage will collect all premiums and pay all claims arising under Texas Memorial's life insurance policies. Investors Heritage will also administer all prepaid funeral service contracts assigned to it.
The Receivership Court entered an order setting April 30, 2010 as the deadline by which claims against the receivership estates must be filed. Late claims are permitted in limited circumstances to the extent that they will prejudice the orderly administration of the estates. The deadline set by the Court for filing late claims is September 1, 2010.
Texas Memorial's customers do not need to file a Proof of Claim to protect their preneed funeral contracts or their insurance policy benefits.
For additional information, contact the Special Deputy Receiver's office at (281) 586-7166 or fax (281) 586-7531 or by mail at 110 Cypress Station, Suite 160, Houston, Texas 77090.
Interested parties should monitor the Receivership Court Documents section of this website for all notices, court filings and orders concerning the receivership.
Frequently Asked Questions
Q: What effect does the Liquidation Order have on preneed contracts, insurance policies and claims?
A: Consumers with preneed contractual obligations should continue to honor their obligations under the agreement. This means that if a consumer has a TMA contract or a Texas Memorial Life 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. Consumers with paid-up contracts or policies do not need to do anything.
Funeral providers should not expect to receive additional non-insurance policy compensation in the form of contract growth payments under preneed contracts or other arrangements. Funeral homes with unpaid claims under preneed funeral contracts will need to file a Proof of Claim with TMA in accordance with the claims filing process established by the court as described above.
Q: If Texas Memorial Life provides insurance coverage that funds preneed funeral contracts, is the coverage in jeopardy?
A: No, that insurance coverage is not in jeopardy. TLAHHSIGA will pay for policy obligations, pursuant to the TLAHHSIGA law provided that the insurance policy is still in effect.
If the preneed 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 terminated.
Q: Is a funeral provider still required to honor the preneed contract?
A: Yes. Neither the Agreed Order placing these companies into receivership nor the Liquidation Order alters the obligations that funeral homes have to consumers.
Even though inflation or growth payments under the preneed contracts which are not funded by the insurance policies will not be paid by TLAHHSIGA, 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 preneed funeral contract by furnishing the described benefits specified in the contract, or provide their equivalent in quality, for the contract price as promised.
Q: What should I do if a funeral provider is refusing to honor a preneed contract?
A: If a funeral provider is refusing to honor a preneed contract, you should contact the SDR and the Texas Department of Banking. The Department of Banking can be reached toll-free at (877) 276-5554, at the menu, prompt select (3) for Inquiries/Complaints, or call (512) 475-1285 directly.
For more information, please contact the SDR, Jack M. Webb & Associates, Inc. at (281) 586-7166. Additionally, please monitor this website frequently as information about the companies is added or updated regularly.
