ACA assurance to cut payouts on some plans.

In an attempt to complete a financial turnaround, ACA Assurance of Manchester has announced a 12 percent cut in potential payouts on pre-paid funeral insurance policies, and it will stop issuing new policies.

The fraternal benefit society, operating under supervision of the New Hampshire Department of Insurance, has some 9,500 members who hold the "PreNeed/Serenity" policies affected by the 12 percent assessment. Many of the policies are held by funeral homes.

Alex Feldvebel, the state's deputy insurance commissioner, told the New Hampshire Union Leader that the effect of the changes "is to reduce the reserves that the society is required to hold for payment of claims, and therefore to increase surplus. It's a special authority given to fraternals to help improve the financial security of the fraternal overall."

Feldvebel added that "I believe we are making good progress toward a soft landing for ACA and a result where they can exit rehabilitation."

Other steps taken by ACA to improve its financial position include selling its interest in Missouri-based American Financial Security Life Insurance, closing its Melbourne, Fla., office and stopping the sale of credit life insurance policies.