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
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).