What is the effect of the order appointing liquidator, order approving liquidation plan, and permanent injunction?
The liquidation rrder states that the companies are insolvent, and appoints the Commissioner of Insurance as liquidator for the companies. This means that all assets of the companies will be liquidated under a plan approved by the court, and used to pay liabilities according to the priorities set out in Tex. Ins. Code ยง 443.301. Under the liquidation plan, individual state guaranty associations will pay the original death benefit for life insurance policies issued by Memorial Service or Lincoln Memorial, ignoring any policy loans, assignments, conversions, and other insurance policy transactions not authorized by the consumer that may have taken place. Payment will be to the funeral home or other burial service providers when burial services are provided. Obligations in pre-need contracts that are not funded by an insurance policy (such as cost of living or inflation growth adjustments) will not be paid under the plan because insurance guaranty associations are prevented by their laws
Related Questions
- What votes are required to approve the Acquisition and Arrangement Resolution and the resolution approving the adoption of the Rights Plan?
- What is the effect of the Order Appointing Liquidator, Order Approving Liquidation Plan and Permanent Injunction ("Liquidation Order")?
- Can A Defamation Claim Justify a Permanent Injunction?
