On June 11th, Senator Delbert Scott met with a number of death care industry members and regulators to begin mapping out the direction for preneed reform in Missouri. From that meeting, it was decided that the state’s death care regulators would form review committees that would facilitate a dialog on the issues, and
Preneed
The First Salvo: Nixon and the NPS affiliates
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
In what may prove to be a lengthy legal proceeding, Missouri Attorney General Jay Nixon filed suit against Forever Network, Inc., an affiliate of National Prearranged Services (NPS). While the suit may duplicate the injunctions effected by the Agreed Order obtained by the Texas Department of Insurance, consumers should take comfort by the fact Mr. Nixon has begun taking action.
While it…
Debunking what trust myth?
By Bill Stalter on
Posted in Preneed
Preneed companies often reach too far in touting the advantages of their company or product. Such is the case with an article in the June edition of the American Funeral Director. Not to be confused with the infamous Lincoln Memorial Life, Lincoln Heritage Life offers advice why insurance funded preneed is often a better choice for funeral…
Waiting for the other shoe(s) to drop
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
Funeral directors will attempt to leverage the Funeral Service Insider’s report about the NPS contributions to state politicians, but they should do so with caution.
The story does not paint the entire picture of NPS’ efforts to influence the politics that controlled Missouri’s preneed industry. The amount attributed to the Missouri efforts ($168,000) seems low. Granted it…
Texas Hold’em: The Rule 11 Agreement
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
The Cassitys have a rearguard strategy after all.
The Texas Department of Insurance paid a price for gaining control of NPS and its sister insurance companies: A Rule 11 Agreement. Texas has agreed to not bring litigation against the companies, or various individuals and firms related to NPS. A very steep price, but…
Missouri Preneed Reform: Act 2
By Bill Stalter on
As news of the NPS meltdown began to leak last month, several proposals to reform Missouri’s preneed law were hastily drafted. Not knowing the extent of NPS’ problems, some reform advocates felt the need to strike while the iron was hot.
Even as the legislative session ended on May 16th, it was not clear whether…
The Emperor Has No Clothes!
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
One positive aspect of Texas appointing a “Rehabilitator” for NPS and its sister insurance companies is the emergence of a single authority over the NPS empire, a godfather so to speak. Rather, a Godmother.
Funeral directors have been chasing legislators, regulators, government officials, and judges for help. This is quite understandable when your entire preneed program was…
It was only a matter of time: NPS/Lincoln in receivership
By Bill Stalter on
Posted in Preneed
The dominoes are beginning to fall. The Texas Department of Insurance has disclosed that Lincoln Memorial and its sister Memorial Service Life have been put into receivership. The Department’s website provides a copy of the order appointing a Donna J. Garrett as the companies’ rehabilitator, and a Q&A for consumers.
Big dreams buried by big questions: NPS
By Bill Stalter on
Yesterday, the St. Louis Post-Dispatch ran an article that examined the history of NPS, and raised some of the questions that need to be explored in depth in the months to come. The system failed in several states, for both consumers and funeral homes. While most funeral homes will try to make good on the…
Your Preneed Forecast: Exams, followed by Audits
By Bill Stalter on
The Missouri preneed industry faces a long and stormy summer.
The Missouri legislature seems to be listening to regulators’ requests for much needed authorities for examinations, audits and rulemaking. A draft bill providing emergency powers to the Division of Professional Registration has emerged as legislation that may be signed into law before the current session ends…