TDI WANTS TO GIVE BACK $7M

March 24, 2003

TDI is searching for 33,000 Texans, each of whom has a $209.50 check coming as his or her piece of a small insurance company that failed in 1992. According to TDI about $7 million will be returned to policyholders. People who held policies of Members Mutual Insurance Co. of Farmers Branch on or after Jan. 1, 1991, and have not received their checks should call TDI at (800) 578-4677. Callers will be asked to verify their identities to make sure they are Members Mutual customers entitled to one of the unclaimed checks. The company’s special deputy receiver (SDR) initially mailed checks early in 2002. Members Mutual specialized in providing insurance for credit union members. A state district court judge in Austin placed the company in receivership in September 1992. After all of the defunct company’s claims and debts were paid, $13.8 million in company assets remained for distribution to the policyholder/owners. This is the biggest distribution on record from a Texas receivership of an insolvent mutual insurance company. Checks were mailed to 66,000 people named in Members Mutual’s policyholder records, but about half of the checks were returned by the postal service because of invalid addresses. TDI has used Internet searches and other means to locate the owners of the returned checks. Questions about the distribution should be directed to TDI’s Liquidation Oversight Division at (800) 578-4677, extension 3-6450, for Jean Sustaita, or extension 5-8152 for Bill Carter.

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Insurance Journal Magazine March 24, 2003
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