Insolvency Cost Information Files
The following items lend guidance to the establishment of accruals for potential guaranty association assessments. Contact the NAIC or AICPA for copies.
- Statement of Statutory Accounting Principle No. 35 R - Revised Guaranty Fund and Other Assessments (finalized March 13, 2000, revised October 18, 2010 and March 2017). This supercedes SSAP No. 35.
- Statement of Statutory Accounting Principle No. 35 - Accounting for Guaranty Fund and Other Assessments (finalized March 2000 by the NAIC)
- Issue Paper No. 35 - Accounting for Guaranty Fund and Other Assessments (finalized December 1999 by the NAIC)
- Accounting Standards Codification 405-30, Insurance-Related Assessments, (ASC 405-30 July 2009) (previously known as SOP 97-3 - Accounting by Insurance and Other Enterprises for Guaranty Fund and Certain Other Insurance-Related Assessments (released December 1997 by the AICPA))
File Explanations:
Insolvency Costs Workbook - This Microsoft Excel workbook contains individual spreadsheets for all insolvency cases along with various summary schedules and assessable premium data.
Insolvency Costs Report - This PDF file contains all commentary and notes for the insolvency cost report. It includes general descriptions of categories, brief comments on individual insolvency cases, assessment and premium tax offset provisions, and premiums by state. Also included are the spreadsheets from the Costs Excel workbook, thus creating one comprehensive report. You will need Acrobat Reader to open and read this file.
Note: If you're having trouble opening a document, we recommend downloading a copy of the document to your workstation and opening the downloaded copy. To download a copy, right-click the document link and select Save link as.
2022 Insolvency Costs Workbook |
2022 Insolvency Costs Report
Last updated 12/7/2022
Global Companies
Colorado Bankers/Bankers Life/Southland National have been in rehabilitation since June 27, 2019 and during that time have been involved in related litigation and disputes. A petition for liquidation as to Colorado Bankers and Bankers Life was filed on November 1, 2022, which was also subject to objection and opposition. Solely for the purpose of providing an estimated cost for member company guaranty association assessment accrual purposes IF any were to enter into liquidation, the information included in this report and related data file assumes 50% of the admitted assets as reported in the 2q 2022 financial statements would be made available to Guaranty Associations. NOLHGA and its consultants have NOT reviewed in detail or reached conclusions regarding the estimates, liabilities, assets or related valuations. The assumptions and estimates contained herein may change depending on the circumstances.
Penn Treaty/American Network
Penn Treaty/American Network costs by state are included in the Insolvency Costs Workbook. We have included a special memorandum containing liability estimates as of March 1, 2017, the date that the Orders of Liquidation for both companies were entered and projected cash flows both of which are included in the 2017 section below. (See "Memo re Liabilities" and "Cash Flow Estimate").
Other
- Booker T. Washington/Universal Life Insurance Companies were moved from Estates Closed to Open Insolvencies as they are in claim run-off and guaranty associations continue to fund policies.
- Andrew Jackson Life Insurance Company was moved from Closed Insolvencies to Estates Closed.
- Senior Health Insurance Company of PA has an order of rehabilitation but is not included in this year's report.
2021 Insolvency Costs Workbook |
2021 Insolvency Costs Report
Last updated 12/10/2021
Lincoln Memorial
2021 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects a present value estimate of remaining business as of fall 2021 along with claims paid, expenses, and assumption funding. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Penn Treaty/American Network
Penn Treaty/American Network costs by state are included in the Insolvency Costs Workbook. We have included a special memorandum containing liability estimates as of March 1, 2017, the date that the Orders of Liquidation for both companies were entered and projected cash flows both of which are included in the 2017 section below. (See "Memo re Liabilities" and "Cash Flow Estimate").
2020 Insolvency Costs Workbook |
2020 Insolvency Costs Report
Last updated 11/6/2020
Lincoln Memorial
2020 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects a present value estimate of remaining business as of fall 2020 along with claims paid, expenses, and assumption funding. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Penn Treaty/American Network
Penn Treaty/American Network costs by state are included in the Insolvency Costs Workbook. We have included a special memorandum containing liability estimates as of March 1, 2017, the date that the Orders of Liquidation for both companies were entered and projected cash flows both of which are included in the 2017 section below. (See "Memo re Liabilities" and "Cash Flow Estimate").
2019 Insolvency Costs Workbook |
2019 Insolvency Costs Report
Last updated 11/8/2019
Lincoln Memorial
2019 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects a present value estimate of remaining business as of fall 2019 along with claims paid, expenses, and assumption funding. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Penn Treaty/American Network
Penn Treaty/American Network costs by state are included in the Insolvency Costs Workbook. We have included a special memorandum containing liability estimates as of March 1, 2017, the date that the Orders of Liquidation for both companies were entered and projected cash flows both of which are included in the 2017 section below. (See "Memo re Liabilities" and "Cash Flow Estimate").
2018 Insolvency Costs Workbook |
2018 Insolvency Costs Report
Last updated 11/15/2018
Lincoln Memorial
2018 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects a present value estimate of remaining business as of fall 2018 along with claims paid, expenses, and assumption funding. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Penn Treaty/American Network
Penn Treaty/American Network costs by state are included in the Insolvency Costs Workbook. We have included a special memorandum containing liability estimates as of March 1, 2017, the date that the Orders of Liquidation for both companies were entered and projected cash flows both of which are included in the 2017 section below. (See "Memo re Liabilities" and "Cash Flow Estimate").
2017 Insolvency Costs Workbook |
2017 Insolvency Costs Report
Last updated 11/27/2017
Lincoln Memorial
2017 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of fall 2017 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Penn Treaty/American Network
2017 Memo re Liabilities |
Cash Flow Estimate
Penn Treaty/American Network costs by state are included in the Insolvency Costs Workbook. We have included a special memorandum containing liability estimates as of March 1, 2017, the date that the Orders of Liquidation for both companies were entered. (see Memo re Liabilities) and projected cash flows (see Cash Flow Estimate).
2016 Insolvency Costs Workbook |
2016 Insolvency Costs Report
Last updated 12/1/2016
Lincoln Memorial
2016 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of June 2016 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Penn Treaty/American Network
Penn Treaty/American Network costs by state are included in the Insolvency Costs Workbook. We have included a special memorandum containing additional explanatory language regarding Penn Treaty/American Network (see Memo re Liabilities).
NOTE regarding the premium data for Kentucky
You may have recently received an assessment notice from the Kentucky Life & Health Insurance Guaranty Association for Penn Treaty/ANIC that reflects substantially lower total state wide accident & health premium amounts for the years 2013-2015 when compared to the premium data contained in the NOLHGA cost files. Please note that the primary cause for this difference is an adjustment to the NOLHGA amounts that Kentucky makes to exclude Medicaid business as it is considered a non-covered product. This adjustment is unique to Kentucky.
As such, you should utilize the Kentucky premium amounts as reflected in their notice (as opposed to the premium amounts contained in the NOLHGA cost files) for purposes of calculating assessment accruals as they will provide a more accurate market share.
2015 Insolvency Costs Workbook |
2015 Insolvency Costs Report
Last updated 11/18/2015
Lincoln Memorial
2015 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of June 2015 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Penn Treaty/American Network
Penn Treaty/American Network costs by state are included in the Insolvency Costs Workbook. We have included a special memorandum containing additional explanatory language regarding Penn Treaty/American Network (see Memo re Liabilities).
While the companies are still in rehabilitation and the liquidation petitions have been denied, we have prepared cost estimates so that guaranty associations and member insurers have an idea of the potential exposure in the event that either company is liquidated in the future.
2014 Insolvency Costs Workbook |
2014 Insolvency Costs Report
Last updated 11/17/2014
Lincoln Memorial
2014 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of Sept 2014 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Penn Treaty/American Network
Penn Treaty/American Network costs by state are included in the "Costs.xls" file. We have included a special memorandum containing additional explanatory language regarding Penn Treaty/American Network (see Memo re Liabilities).
While the companies are still in rehabilitation and the liquidation petitions have been denied, we have prepared cost estimates so that guaranty associations and member insurers have an idea of the potential exposure in the event that either company is liquidated in the future.
2013 Insolvency Costs Workbook |
2013 Insolvency Costs Report
Last updated 12/2/2013
Lincoln Memorial
2013 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of Sept 2013 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Penn Treaty/American Network
Penn Treaty/American Network costs by state are included in the "Costs.xls" file. We have included a special memorandum containing additional explanatory language regarding Penn Treaty/American Network (see Memo re Liabilities).
While the companies are still in rehabilitation and the liquidation petitions have been denied, we have prepared cost estimates so that guaranty associations and member insurers have an idea of the potential exposure in the event that either company is liquidated in the future.
ELNY - June 2013 Closing Funding Memo - Exhibit A
This ELNY GA Funding Liability Estimate is an estimate of GA coverage liability and GA funding that will be required in connection with the ELNY Agreement of Restructuring. Affected GAs will use this estimate for purposes of assessments and closing funding. However, final GA coverage liability and GA funding will be determined as of closing pursuant to the terms of the Agreement of Restructuring. If necessary, there will be a true-up with the GAs based on the final GA coverage liability and GA funding. The assumptions used in preparing this estimate are set forth in the footnotes. Also please note the attached estimate does NOT include additional expenses incurred by NOLHGA or the guaranty associations, as a result actual assessments may differ from the attached.
2012 Insolvency Costs Workbook |
2012 Insolvency Costs Report
Last updated 12/5/2012
Lincoln Memorial
2012 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of Sept 2012 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
The Memorial Service business was sold during 2011. The costs for this company are included in the "Costs.xls" file and, unlike prior years, no cost range will be provided.
Executive Life of New York (ELNY) and Penn Treaty/American Network
2012 Memo re Penn Treaty and ANIC Liabilities
ELNY and Penn Treaty/American Network costs by state are now included in the "Costs.xls" file. We have included a special memorandum containing additional explanatory language regarding Penn Treaty/American Network (see Memo re Penn Treaty and ANIC Liabilities).
2011 Insolvency Costs Workbook |
2011 Insolvency Costs Report
Last updated 12/15/2011
Lincoln Memorial
2011 Estimated Net Costs - Lincoln Memorial
Lincoln Memorial wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of June 2011 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
The Memorial Service business was sold during 2011. The costs for this company are included in the "Costs.xls" file and, unlike prior years, no cost range will be provided.
Executive Life of New York (ELNY) and Penn Treaty/American Network
ELNY and Penn Treaty/American Network costs by state are now included in the "Costs.xls" file.
2010 Insolvency Costs Workbook |
2010 Insolvency Costs Report
Last updated 12/9/2010
Lincoln Memorial
2010 Estimated Net Costs - Lincoln Memorial
Please see the attached Excel file labeled “Lincoln Memorial/Memorial Service”. These two companies wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of June 2010 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Executive Life of New York (ELNY)
Please see the attached memo labeled “Information re ELNY” which contains general information regarding the costs for this case. Note that the cost estimates discussed in this memo are NOT included in the attached data files or report.
2009 Insolvency Costs Workbook |
2009 Insolvency Costs Report
Last updated 12/10/2009
Lincoln Memorial
2009 Estimated Net Costs - Lincoln Memorial
Please see the attached Excel file labeled “Lincoln Memorial/Memorial Service”. These two companies wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of September 2009 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.
Executive Life of New York (ELNY)
Please see the attached memo labeled “Information re ELNY” which contains general information regarding the costs for this case. Note that the cost estimates discussed in this memo are NOT included in the attached data files or report.
2007 Insolvency Costs Workbook |
2007 Insolvency Costs Report
Last updated 11/19/07
