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.