2023 Insolvency Costs Workbook |   2023 Insolvency Costs Report   Last updated 12/15/2023

Global Bankers Insurance Group

The Global Companies consist of three insurance companies domiciled in North Carolina – Southland National LIfe Insurance Company (SNIC), Colorado Bankers Life Insurance Company (CBLIC), and Bankers Life Insurance Company (BLIC). All three companies were placed in rehabilitation in June 2019 due to significant troubled investments in affiliates.

On December 30, 2022, a liquidation order with a finding of insolvency was issued with respect to CBLIC and BLIC (CBLIC/BLIC Order). However, the CBLIC/BLIC Order, by its terms, is not effective and won’t become effective until approximately 90 days following the resolution of any appeal filed with respect to the CBLIC/BLIC Order. GBIG Holdings, the shareholder of CBLIC and BLIC, appealed the CBLIC/BLIC Order. The appeal remains pending as of the date of this report, and the timing of the resolution of the appeal is uncertain. As a result, the CBLIC/BLIC Order is not effective and guaranty associations have not been activated to provide coverage benefits with respect to CBLIC and BLIC.

On May 2, 2023, a liquidation order with a finding of insolvency was entered with respect to SNIC (SNIC Order). While the SNIC Order was also appealed by GBIG Holdings, it was effective immediately upon being entered. GBIG Holding also filed a motion to stay the SNIC Order, but the motion was denied by the Receivership Court. As a result, the SNIC Order remains in effect and affected guaranty associations have been activated and are providing coverage benefits to SNIC policyholders.

Solely for the purpose of providing an estimated cost for member insurer consideration of possible guaranty association assessment accruals (if any), the information included in this report and related data file assumes (1) that the receiver’s program to distribute to CBIC and BLIC annuity contract holders 25% of their account values has been completed, and (2) a portion of the companies’ admitted assets would be made available to guaranty associations as early access. However, it should be noted that all three companies are involved in extensive litigation and disputes over assets. Moreover, NOLHGA and its consultants have NOT reviewed in detail or reached conclusions regarding the estimates, liabilities, assets, or related valuations. Therefore, the assumptions and estimates reflected herein will likely change based on developing 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")

American Independent Network Insurance Company (AINIC)

On September 5, 2023, New York (NY) Superintendent Harris filed a petition for the liquidation of AINIC, the wholly owned subsidiary of American Network Insurance Company. The Supreme Court of NY (the receivership court) subsequently granted the petition and issued the Liquidation Order for AINIC on October 1. As the company was licensed only in NY, the NY Guaranty Corporation is the only affected guaranty association. However, policyholders reside in 22 states in addition to NY, and they will be covered under the "orphan" provisions of the New York statute up to New York's coverage limit of $500,000.

AINIC’s gross premium reserves as of June 30, 2023, were $58.8 million, as the covered policyholder obligations are currently being determined. The NY Guaranty Corporation, led by Administrator Alan Shortell, has already received Board approval to authorize and call member assessments in 2024.

Friday Health Plans of Texas, Georgia, North Carolina, Colorado, Oklahoma, and Nevada

Liquidation orders with a finding of insolvency were entered against the following Friday Health Plan affiliated entities during 2023: Friday Health Plans of Texas (March 23rd), Friday Health Plans of Georgia (August 1st), Friday Health Plans of North Carolina (September 1st), Friday Health Plans of Colorado (September 1st), Friday Health Plans of Oklahoma (September 1st), and Friday Health Plans of Nevada (September 1st). Each of these companies triggered only the guaranty association in its state of domicile. While these cases are “single state insolvencies,” the affiliated nature of the entities prompted the formation of an ad hoc "task force" of affected guaranty associations to collaborate on common issues and share resources where appropriate.

Colorado and Nevada were the only states to authorize assessments ($70 million and $30 million, respectively). No assessments have been called for Colorado, but $15 million was called on September 1 for Nevada.

We plan to share the accumulated cost and liability information in next year’s update.

Other

• National Heritage Life was moved from Closed Insolvencies to Estates Closed in November 2023.
• Senior Health Insurance Company of PA continues to maintain an order of rehabilitation and is not included in this year's report.

  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

  2016 Memo re Liabilities

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).

  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

  2015 Memo re Liabilities

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

  2014 Memo re Liabilities

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

  2013 Memo re Liabilities

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)

  2010 Information re 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)

  2009 Information re 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.

 2008 Insolvency Costs Workbook |  2008 Insolvency Costs Report   Last updated 1/22/09
2008 ELNY Assessment | 2008 Lincoln Memorial/Memorial Service

2007 Insolvency Costs Workbook | 2007 Insolvency Costs Report   Last updated 11/19/07

2006 Insolvency Costs Workbook | 2006 Insolvency Costs Report Last updated 11/30/06

2005 Insolvency Costs Workbook | 2005 Insolvency Costs Report

2004 Insolvency Costs Workbook | 2004 Insolvency Costs Report

2003 Insolvency Costs Workbook | 2003 Insolvency Costs Report

2002 Insolvency Costs Report - Comments | 2002 Insolvency Costs Workbook | 2002 Insolvency Costs Report

2001 Insolvency Costs Report - Comments | 2001 Insolvency Costs Workbook | 2001 Insolvency Costs Report

2000 Insolvency Costs Report - Comments | 2000 Insolvency Costs Workbook | 2000 Insolvency Costs Report

1999 Insolvency Costs Report - Comments | 1999 Insolvency Costs Workbook | 1999 Insolvency Costs Report