Grand Court Order of Calanthe in Receivership


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Information for Policyholders of the Grand Court Order of Calanthe (Calanthe) Regarding Proposal to Convert Calanthe to a Mutual Life Insurance Company

What is happening?

The Special Deputy Receiver (SDR) for Calanthe proposes to convert Calanthe from a fraternal benefit society (Fraternal) to a mutual life insurance company (Mutual). This notice explains the SDR’s proposal, and how it will help protect Calanthe’s policyholders and beneficiaries.

Why is the SDR proposing a conversion?

Calanthe does not have enough money to pay all claims that are expected in the future. If Calanthe is liquidated, your policies will be cancelled. If Calanthe is converted to a Mutual Company and later liquidated, your policies are not cancelled. Instead they are protected by the Texas Life and Health Insurance Guaranty Association (Guaranty Association). The Guaranty Association will pay policy claims if Calanthe is liquidated.

Will my policy change?

If the conversion is approved, Calanthe’s existing policies will be replaced with new policies. The policies will use new forms, but the amount of your coverage and your premiums will not change.

But, if your policy has a reduced paid-up non-forfeiture option, the following will change:

Under your current policy, if you stop paying premiums your policy will stay in force until you die, but death benefits will be reduced significantly. The reduction in death benefits depends on your policy, and on some policies the death benefits can be very small.

Under the new policy, if you stop paying premiums your death benefits stay the same, but your policy will end earlier than it would have under your current policy. The end date depends on the death benefit of your policy, how long you have had it, and other factors.

These changes will not affect you if you pay premiums when they are due. If you have questions about your policy, you may send an email to Robert Pinon at rpinon@rocsdr.com.

How will the conversion be approved?

The SDR filed the Application in the Travis County District Court (Receivership Court), which will consider it on March 30, 2020. Any objections to the Application must be filed by March 27, 2020, as described in the notice in the Application. You do not need to take any action unless you want to object to the Application.

What will happen after the conversion?

The SDR will file an application with the Receivership Court to liquidate Calanthe. If the Receivership Court enters an order liquidating Calanthe after the conversion is approved, the Guaranty Association will be responsible for collecting premiums and paying claims.

Will I need to pay an assessment?

If a Fraternal does not have enough money to pay claims, its members can be assessed to raise funds. If Calanthe is converted to a Mutual, there will not be an assessment. Policyholders will only need to pay premiums that are due.

What if I have a claim or want to cash in my policy?

The SDR will continue to handle claims and requests for policy surrenders until further notice. You must send the required documentation in writing to the SDR at the address listed at the end of this page. If you have any questions about the process of making a claim, you may send an email to rpinon@rocsdr.com. If the Guaranty Association becomes responsible for collecting premiums and paying claims, you will be notified. This information will be posted on this webpage.

Will the conversion affect the Calanthe Historical Society (CHS)?

The conversion of Calanthe to a Mutual will not affect CHS, which can continue its fraternal activities. The SDR has asked CHS to serve as an advisory committee in the receivership.

Where can I get more information about the Application?

The Application is available on the Pleadings Link on this webpage. You can also request a copy of the Application by writing the SDR at the address listed at the end of this page. If you have questions about the Application you can call Rachel Stroud at 512-293-8244, or send an email to rstroud@thestroudfirm.com.

How can I stay informed about the status of the receivership?

Notices will be posted on this webpage. Please save this web address, as it will be frequently updated. If you have an email address that allows you to receive emails with very large attachments, you may request to be added to the delivery list for pleadings filed by the SDR by sending an email to jmeiners@thestroudfirm.com.

Future Notices

In the near future we will notify policyholders of new policy forms and changes to the process for paying premiums and filing claims. It is important that we have your current contact information. If you move or change your phone number, please send us your name, address, phone number and policy number.

Resolution Oversight Corporation

Special Deputy Receiver

P.O. Box 2077

San Antonio, TX 78297-2077

Voice: 770.903.6233

www.calanthereceivership.com

 

 

FREQUENTLY ASKED QUESTIONS

How do I receive notice of the actions taken by the SDR and the orders of the court?

All pleadings will be posted on this website so you can view them whenever you would like. If you have an email address that allows you to receive emails with very large attachments, you may request to be added to the delivery list for the pleadings filed by the SDR by sending an email to jmeiners@thestroudfirm.com requesting to be added to the certificate of service.

Advisory Committee

The Special Deputy Receiver has appointed the members of the Calanthe Historical Society (CHS) to serve as an advisory committee.  The Special Deputy Receiver has also provided a copy of this Application to counsel for the CHS, Ms. Kim Yelkin. If you are a member of the Calanthe Historical Society, you may ask them questions.

Future Notices  

In the next few months, we will notify policyholders of changes to the process for paying premiums and new policy forms.  This information will also be available on this page. 

What if I have questions about this Conversion process?

If you have any questions regarding the conversion process, please email Rachel Stroud at rstroud@thestroudfirm.com or call 512-293-8244.

What if I have a claim? Or want to cash in my policy?

You will need to send in the required documentation for your claim.  You must send the request in writing to:

Grand Court Order of Calanthe

P.O. Box 2077

San Antonio,  TX 78297-2077

 

If you have any questions about the process of making a claim, you may send an email to rpinon@rocsdr.com  or contact him at 770-903-6233.

 

Resolution Oversight Corporation

Special Deputy Receiver

P.O. Box 2077

San Antonio, TX 78297-2077

Voice: 770.903.6233

rpinon@rocsdr.com