Collapse of funeral firm could cost state $18 million

Wednesday, December 16, 2009 | 6:43 p.m. CST

JEFFERSON CITY — The financial collapse of a prearranged funeral firm could cost Missouri $18 million.

The executive director of the Insurance Guaranty Association says that since October 2008, it has made good on 4,000 claims to cover funeral contracts underwritten by the now-defunct Lincoln Memorial Life Insurance Co.

When an insurance company goes broke, other insurance companies licensed in Missouri are assessed a fee by the Insurance Guaranty Association to cover the policies of the bankrupt company. The insurance companies then can offset the premium taxes they owe the state over a five-year period by an amount equal to the assessments the companies paid.

State Sen. Brad Lager told the Columbia Daily Tribune that he doubts most legislators realize those insurance company assessments are reimbursed by the state.

Like what you see here? Become a member.

Show Me the Errors (What's this?)

Report corrections or additions here. Leave comments below here.

You must be logged in to participate in the Show Me the Errors contest.


Leave a comment

Speak up and join the conversation! Make sure to follow the guidelines outlined below and register with our site. You must be logged in to comment. (Our full comment policy is here.)

  • Don't use obscene, profane or vulgar language.
  • Don't use language that makes personal attacks on fellow commenters or discriminates based on race, religion, gender or ethnicity.
  • Use your real first and last name when registering on the website. It will be published with every comment. (Read why we ask for that here.)
  • Don’t solicit or promote businesses.

We are not able to monitor every comment that comes through. If you see something objectionable, please click the "Report comment" link.

You must be logged in to comment.

Forget your password?

Don't have an account? Register here.