snfca8k20091231.htm
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
Report (Date of Earliest Event Reported): December 31, 2009
SECURITY
NATIONAL FINANCIAL CORPORATION
(Exact
name of registrant as specified in this Charter)
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Utah
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0-9341
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87-0345941
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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5300 South 360
West, Salt Lake City, Utah
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84123
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
Telephone Number, Including Area Code: (801)
264-1060
Does
Not
Apply
(Former
name or former address, if changed since last report)
ITEM 8.01. Other
Events.
Transactions
to Liquidate Security National Life Insurance Company of Louisiana
and
Capital Reserve Life Insurance Company
On
December 31, 2009, Security National Life Insurance Company of Louisiana
("Security National Life of Louisiana") entered into an Assumption Reinsurance
Agreement with Security National Life Insurance Company ("Security National
Life") to reinsure the remaining in force business of Security National Life of
Louisiana to Security National Life to the extent permitted by the Louisiana
Department of Insurance. The Louisiana Department of Insurance
approved the Assumption Reinsurance Agreement on December 2, 2009.
As a
result of the Assumption Reinsurance Agreement, all of the insurance business
and operations of Security National Life of Louisiana, including assets and
liabilities, were transferred to Security National Life, as reinsurer, as of
December 31, 2009. Thus, $3,189,000 in statutory assets and
liabilities were transferred from Security National Life of Louisiana to
Security National Life pursuant to the Assumption Reinsurance
Agreement. In addition, Security National Life of Louisiana entered
into an Assignment dated December 31, 2009 with Security National Life to assign
and transfer to Security National Life all of the assets and liabilities that
remained following the transfer of assets and liabilities pursuant to the
Assumption Reinsurance Agreement.
The
liquidation of Security National Life of Louisiana was completed as of December
31, 2009 in accordance with the terms and conditions of the Agreement and Plan
of Complete Liquidation to liquidate Security National Life of Louisiana into
Security National Life. The Board of Directors of both Security
National Life of Louisiana and Security National Life approved a plan of
liquidation as of September 18, 2009. Under the terms of the Agreement and Plan
of Complete Liquidation, Security National Life of Louisiana was liquidated into
Security National Life in essentially the same manner as the liquidation
described in Private Letter Ruling 9847027 in order to achieve the same tax
treatment and consequences under Section 332 of the Internal Revenue Code of
1986, as amended, and other applicable provisions described in such Letter
Ruling. During 2010, Security National Life plans to take appropriate
legal action to dissolve Security National Life of Louisiana in accordance with
Louisiana law.
Also,
effective as of December 31, 2009, Security National Life exercised its right of
recapture pursuant to the Reinsurance Agreement effective as of November 30,
2008, between Capital Reserve Life Insurance Company ("Capital Reserve") and
Security National Life in which Security National Life recaptured all of the
previously reinsured liabilities under the Reinsurance Agreement. As
a result of the recapture, Security National Life is primarily liable for the
liabilities on the insurance contracts and annuities originally issued by
Capital Reserve to its policyholders. The assets transferred by
Capital Reserve to Security National Life pursuant to such recapture have a fair
market value of $4,895,000, which was equal to the assumed
liabilities.
In
addition, Capital Reserve entered into an Assignment dated December 31, 2009
with Security National Life to assign and transfer to Security National Life all
of the assets and liabilities that remained following the recapture, except for
Capital Reserve's corporate charter, insurance licenses, and $1,681,000 in
statutory capital and surplus, which will allow Capital Reserve to preserve its
corporate existence in Missouri. During 2010, Security National
Life plans either to sell the corporate charter, licenses, and capital and
surplus of Capital Reserve to an unrelated business entity or to dissolve
Capital Reserve in accordance with Missouri law.
The
purpose of Security National Life exercising its right of recapture pursuant to
the 2008 Reinsurance Agreement was so that the $4,895,000 in statutory assets
and liabilities of Capital Reserve could be transferred to Security National
Life by December 31, 2009 in accordance with the terms of the plan of
liquidation between Capital Reserve and Security National Life. On
December 4, 2009, Capital Reserve and Security National Life entered into an
Agreement and Plan of Complete Liquidation to liquidate Capital Reserve into
Security National Life in the same manner as the liquidation described in
Private Letter Ruling 9847027 in order to achieve the same tax treatment and
consequences under Section 332 of the Internal Revenue code of 1986, as amended,
and other applicable provisions described in such Letter
Ruling.
ITEM
9.01. Financial
Statements and Exhibits
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(c) Exhibits
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10.1
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Agreement
and Plan of Complete Liquidation of Security National Life Insurance
Company of Louisiana into Security National Life Insurance
Company
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10.2
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Assumption
Reinsurance Agreement between Security National Life Insurance C ompany of
Louisiana and Security National Life Insurance Company
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10.3
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Assignment
between Security National Life Insurance Company of Louisiana and Security
National Life Insurance Company
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10.4
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Agreement
and Plan of Complete Liquidation of Capital Reserve Life Insurance Company
into Security National Life Insurance Company
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10.5
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Assignment
between Capital Reserve Life Insurance Company and Security National Life
Insurance Company
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SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
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SECURITY
NATIONAL FINANCIAL CORPORATION
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(Registrant)
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Date:
January 11, 2010
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By: /s/
Scott M.
Quist
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Scott
M. Quist, President
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