In a post made June 30th, we discussed how the strategy behind the Wisconsin settlement proposal makes sense. But, a significant percentage of funeral homes have yet to sign on to the settlement. In terms of the Master Trust’s liabilities to consumers, funeral homes with 30% of those contracts are holding out. While both the
litigation
An Investment Strategy: the Man without a Plan
By Bill Stalter on
If you haven’t noticed, there has been some turnover among the associations’ preneed fund managers. With the threat of additional litigation in Wisconsin, this trend could continue. But not all of the turnover has been as publicized as what we have seen in Illinois and Wisconsin. After 20 years at the helm, Merrill Lynch recently…
The IFDA: Charting a Correcting Course
By Bill Stalter on
Posted in IFDA
As reported by the Memorial Business Journal*, the Illinois Funeral Directors Association has taken back the helm. For the past three years, the IFDA has been a floundering ship in risk of sinking. The master trust that paved the Association’s growth, has been threatening to bring it down. The IFDA took a crucial step…
Comptroller: It’s Not My Call
By Bill Stalter on
For a brief period, the Illinois Comptroller posted a notice that sidestepped the inquiries made by funeral directors about the application of their Merrill Lynch settlements. The OIC website has since be revised.
One of the inquiries to the OIC may have involved whether the settlement funds could be applied to the litigation costs for…
The Next Twist in the IFDA/Merrill Lynch saga
By Bill Stalter on
The Springfield Journal-Register reported last week on the latest lawsuit to hit Merrill Lynch, the IFDA and the law firm that represented the Association.
One aspect of the lawsuit focuses upon the claim that the key man insurance policies sold to the master trust were not suitable investments. Without an insurable interest, the policies could…
Dig Deeper: the price of Merrill Lynch’s divorce from the IFDA
By Bill Stalter on
In rejecting the $18 million settlement forced upon IFDA members, an Illinois Circuit Court is telling Merrill Lynch Life Agency to dig deeper into its pocket to compensate funeral homes. As reported by the Springfield Journal-Register, the $18 million represents the revenues the insurance broker received from the sale of key man insurance to…
Caught in a crossfire: the IFDA
By Bill Stalter on
Posted in Preneed
It didn’t take long for an Illinois funeral director to confirm that IFDA members have disagreements with their association leadership.
Several Illinois funeral homes filed a lawsuit in Cook County Circuit Court on January 28th. The petition, a derivative complaint, seeks remedies and damages on behalf of all Illinois funeral homes that participated in the IFDA master…