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.

File Explanations:

Costs - This Microsoft Excel workbook contains individual spreadsheets for all insolvency cases along with various summary schedules and assessable premium data.

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.

Comments - This file is no longer provided beginning with 2003 since all information is included in the Report PDF file. This Microsoft Word document contains all commentary and notes for the insolvency cost report. It includes general descriptions of categories, brief comments on individual insolvency cases and premium tax offset provisions.

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 target as.

2018

  Costs |   Report Last updated 11/15/2018

Lincoln Memorial

  Estimated Net Costs

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 "Costs.xlsx" file. 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

  Costs |   Report Last updated 11/27/2017

Lincoln Memorial

  Estimated Net Costs

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

  Memo re Liabilities |   Cash Flow Estimate

Penn Treaty/American Network costs by state are included in the "Costs.xlsx" file. 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

  Costs |   Report Last updated 12/1/2016

Lincoln Memorial

  Estimated Net Costs

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

  Memo re Liabilities

Penn Treaty/American Network costs by state are included in the "Costs.xlsx" file. 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

  Costs |   Report Last updated 11/18/2015

Lincoln Memorial

  Estimated Net Costs

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

  Memo re Liabilities

Penn Treaty/American Network costs by state are included in the "Costs.xlsx" 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.

2014

  Costs |   Report Last updated 11/17/2014

Lincoln Memorial

  Estimated Net Costs

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

  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

  Costs |   Report Last updated 12/2/2013

Lincoln Memorial

  Estimated Net Costs

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

  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.

Executive Life of New York (ELNY) Update - June 2013

  ELNY - 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

  Costs |   Report Last updated 12/5/2012

Lincoln Memorial

  Estimated Net Costs

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

  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

  Costs |   Report Last updated 12/15/2011

Lincoln Memorial

  Estimated Net Costs

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

  Costs |   Report Last updated 12/9/2010

Lincoln Memorial

  Estimated Net Costs

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)

  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

  Costs |   Report Last updated 12/10/2009

Lincoln Memorial

  Estimated Net Costs

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)

  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

Costs [2307k] Report [1009k] [download] [1159k] Last updated 1/22/09
ELNY [37k] Lincoln Memorial/Memorial Service

2007

Costs [1436k] Report [702k] [download] [914k] Last updated 11/19/07

2006
Costs [1449k] Report [622k] [download] [833k] Last updated 11/30/06
2005

Costs [1413k] Report [588k] [download] [809k]

2004

Costs [1003k] Report [522k] [download] [690k]

2003

Costs [1003k] Report [522k] [download] [690k]

2002

Comments [89k] Costs [892k] Report [471k] [download] [627k]

2001

Comments [85k] Costs [908k] Report [743k] [download] [910k]

2000

Comments [108k] Costs [1,008k] Report [743k] [download] [252k]

1999

Comments [108k] Costs [860k] Report [743k] [download]