North Carolina court recently issued an order of liquidation against SNIC’s assets
Nashville – The Tennessee Department of Commerce & Insurance (“TDCI”) is sharing policy coverage information with Tennessee policyholders of the North Carolina based Southland National Insurance Company (“SNIC”). A North Carolina court recently issued an order of liquidation against SNIC’s assets. A copy of the final order of liquidation can be found here.
In most cases, the SNIC policies were purchased through funeral homes in Tennessee by individuals and families seeking to cover their final expenses. The funeral homes sold SNIC life insurance policies to the consumers to pay for the pre-need plan costs. According to court records, Southland National has 4,630 life insurance policies in Tennessee with combined payable death benefits to policyholders of $26,935,460.
With the court-ordered liquidation, the Tennessee Life & Health Insurance Guaranty Association Act (“TLHIGA”) will be utilized to assist consumers. When a member insurance company is found to be insolvent and is ordered to be liquidated by a court, the Act enables the guaranty association to provide protection (to Tennessee residents who are holders of life and health insurance policies and individual annuities with the insolvent insurer. This assistance has specific limits that are included in the law.
The TLHIGA is working with guaranty associations in other states as well as SNIC’s receiver in North Carolina to ensure that any claims under SNIC policies are promptly paid when due.
To assist SNIC policyholders, TDCI is sharing the following:
- To maintain existing coverage with a SNIC policy, all Tennessee SNIC policyholders must continue to pay premiums.
- Nonpayment of policies will result in the cancellation of policies in accordance with the policy terms.
Under the Act, life insurance policies are guaranteed up to the limits under the policy or $300,000 (whichever is less). Neither TDCI nor TLHIGA has individual policy records. SNIC policyholders can continue to utilize the same contact information to obtain the policy services that they have been using thus far.
SNIC customers can continue to call 800-277-8762 for policy services or by email at email@example.com.
Image by katemangostar on Freepik.