Funeral Directors Life Insurance Company to Assume Requia Life Insurance Policies
Requia Life Insurance Company (Requia), located in Madison, WI, has entered into an agreement with Funeral Directors Life Insurance Company (FDLIC), located in Abilene, TX, for FDLIC to acquire the existing life insurance and annuity polices of Requia, effective April 1, 2013.
Requia’s Board of Directors and its sole shareholder, the receiver of the Wisconsin Funeral Trust, approved the transaction with FDLIC. Requia and FDLIC filed documents for review and approval with the Office of the Commissioner of Insurance (OCI). The transaction has been approved by the OCI and is awaiting receivership court approval.
The Wisconsin Funeral Trust, which owns Requia, went into receivership in September of 2012 after it was determined that the Trust had a shortfall of at least $21 million. The sale of Requia’s insurance and annuity policies to FDLIC is part of the Receiver’s plan to resolve the shortfall issue with the Wisconsin Funeral Trust.
“Requia has served its funeral director partners and policyholders well,” said Guenther Ruch, Acting President and CEO of Requia. “We have fully met our obligations in a timely fashion,” said Ruch. However, due to the circumstances of the Trust and other insurance regulatory issues, it was necessary to find a partner to take over Requia’s business. “We are very pleased that FDLIC, after all the necessary approvals, will acquire Requia’s business, and are confident that FDLIC will service our funeral director partners and policyholders well.”
“We want to reassure Requia policyholders that they will experience no changes to their pre-arranged funeral plans or the terms of their insurance policies or annuity contracts. All policies will be honored as written,” said Kris Seale, President and CEO of FDLIC. “We are committed to serving our customers, including those coming to us through Requia Life, in the best, most-respected way.”
FDLIC specializes in the sale of pre-arranged funerals funded with life insurance and annuities. FDLIC has over $1 billion of life insurance in force and is licensed to conduct business in 45 states. Since 2006, FDLIC has maintained an A‐ “Excellent” rating from A.M. Best Company, the world’s leading insurance ratings provider, signifying a strong financial position. In addition, The Ward Group, a leading provider of benchmarking and best practices research studies for insurance companies, recognized FDLIC as one of the top 50 life and health insurance companies in the nation in 2011 and 2012 based on safety, consistency, and performance over a 5-year period.
“We want to step in and provide some stability in the marketplace and help the funeral directors of Wisconsin,” said Seale. “Funeral homes that have policies through Requia can rest assured that FDLIC is committed to being here for the long haul, and we take pride in being good stewards of the funds entrusted to us.”