Concurrent with the hearing held on her Liquidation Plan, the Special Deputy Receiver posted a financial report to the Lincoln Memorial Life/NPS website. As with most financial statements, explanatory notes at the end of the report provide some insights to the failed NPS empire. While prior documents have disclosed that the companies have a deficient of
NPS Installment Contracts and the Liquidation Plan
By Bill Stalter on
Posted in NPS/Lincoln
While approval of the SDR’s Liquidation Plan is imperative to providing funds for NPS contracts that are being serviced, and will be serviced during the next few years, funeral directors and consumers are raising valid questions about the Plan. For the consumer who purchased a trust-funded contract from NPS on installments, the Plan fails to…
A Reasonable and Necessary Trustee Fee: penny wise and pound foolish
By Bill Stalter on
The Special Deputy Receiver for NPS recently reported the company’s “negative net worth” to be just short of one billion dollars. Rightfully, regulators are looking at the NPS fiduciaries for culpability in the losses that will be sustained by consumers and funeral homes in the years to come. In the meantime, Missouri state officials are working…
Preneed Portability: easier said than done
By Bill Stalter on
So why is it so tough to provide preneed portability? Because the transaction has been defined by state law as a contract between a consumer and a death care company, and federal regulators tend to agree. When the issue has arisen in the context of federal preemption, the interests of the state regulator have prevailed…
NPS Providers: Your New Management Team
By Bill Stalter on
Posted in NPS/Lincoln
On June 8th, Donna Garrett, the Special Deputy Receiver for the NPS affiliates, filed with the Texas Travis County Court an application for fees. The application includes a schedule of fees that will be charged by the subcontractors to be utilized by the SDR. The filing would seem to indicate the law firm of…
The NPS Class Action Lawsuit: James & Gahr
By Bill Stalter on
Posted in NPS/Lincoln, Preneed
The class action lawsuit brought against the NPS affiliates on Friday, June 20th reflects the despair that some funeral directors are experiencing over the situation. Although litigation to recover assets from the Cassity Empire was inevitable, this lawsuit has flaws that need to be corrected through an organized effort brought by the states’ regulators.
Funeral…
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…
Suspect Business Practices?
By Bill Stalter on
Posted in NPS/Lincoln
It is not a good sign when our regulators communicate by letter. Friday’s Post Dispatch story underscores the friction that exists among some of the regulatory agencies caught in the NPS fiasco.
In one aspect, the letter is intended to demonstrate that the Missouri Attorney General’s Office is dependent upon the State Board of Embalmers and Funeral Directors and the…
Say Again? Texas’ Rule 11 Agreement
By Bill Stalter on
Posted in NPS/Lincoln
I will preface this blog entry by stating that I do not fault the Texas Department of Insurance for the Rule 11 Agreement if giving up litigation against NPS/Lincoln Memorial (and the various individuals) was the price extracted for gaining control of the companies and the preneed records. Someone needed to take action, and I…
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…