New York Life CEO Mathas to Speak at Legal Seminar
Ted Mathas, the President, Chairman, and CEO of New York Life, has agreed to speak at NOLHGA’s 2011 Legal Seminar in San Francisco this July. He is scheduled to speak on the morning of July 22.
Mr. Mathas joined New York Life in June 1995 in the Asset Management operation. Since that time he has held positions of increasing responsibility, including President of NYLIFE Securities LLC, a retail broker-dealer subsidiary; Chief Operating Officer for Agency Distribution; Chief Operating Officer for Life and Annuity; and Executive Vice President and Co-head of U.S. Insurance Operations. He became President of New York Life in July 2007 and Chief Executive Officer in July 2008; he became Chairman of the Board on June 1, 2009.
NOLHGA’s 19th Annual Legal Seminar will be held at the Ritz-Carlton, San Francisco on July 21 and 22; an MPC meeting will be held on July 19 and 20. More information about the Legal Seminar will appear in the NOLHGA Wire and other NOLHGA publications in the coming months.
Staff Contact -ACLI Sends Letter to Member Companies Regarding ACLI/NOLHGA Coverage & GA Act Initiatives
On March 9, 2011, the ACLI Board of Directors sent a letter to representatives of ACLI member companies serving on guaranty association boards. In the letter, the Board asks for the companies' support for efforts to strengthen the state-based guaranty system, in particular in the areas of achieving greater consistency in guaranty association statutory laws and coverage determinations. The letter, which is printed below, was also sent to guaranty association board chairs and vice chairs who are not representatives of ACLI member companies.
To: ACLI Member Company Representatives Serving on Guaranty Association Boards
Re: Guaranty System Improvements
The ACLI Board of Directors is writing to express its strong interest in seeing that the life insurance industry does all that it can to strengthen our guaranty system and make it operate in a more uniform and consistent manner. This is a top priority for our business, and we are looking to you as a group to be instrumental in the months ahead to achieve this goal.
Our guaranty system has been instrumental for over 20 years in protecting policyholder interests. Coverage obligations have always been met on a timely basis, and guaranty associations have worked with industry and regulators in a collaborative fashion to optimize the resolution of troubled companies. A number of factors, however, will likely result in the guaranty system coming under intense scrutiny in the near term. These factors include: insolvencies likely to generate significant public attention; industry efforts with the U.S. Departments of Labor and Treasury to encourage annuitization by retirement plan participants and comments by some outside our industry calling into question the adequacy of our guaranty system; retirement plan fiduciaries asking product coverage questions as they consider offering annuities in their plans; coverage questions raised as a result of the retained asset account situation; a requested GAO study assessing the adequacy of the insurance guaranty system; the pending Federal Insurance Office study of insurance regulation; and remarks by FDIC Chairwoman Sheila Bair suggesting that the FDIC should be the agency standing behind insurance product guarantees.
While we have all worked consistently over the years to improve the guaranty system, it is particularly important at this time that we be in the best position possible to demonstrate the effectiveness of that system in providing protection to life insurance and annuity purchasers. An important part of this effort will be showing that those aspects of the system that can be strengthened are being addressed aggressively. Two of these aspects in particular will need your support and cooperation. The first is resolving key coverage issues (e.g., joint and survivor annuities, variable annuities with general account guarantees, allocated versus unallocated annuities) and having those coverage decisions uniformly embraced by all guaranty associations. The second is securing passage of the latest Guaranty Association Model Act in all jurisdictions to assure that there are uniform coverage minimums in place and that guaranty associations are operating as uniformly as possible.
The ACLI and NOLHGA are working together to develop consensus positions on priority coverage issues, and ACLI is committed to getting the revised Model Act adopted in all jurisdictions. But agreed upon coverage interpretations will be of limited value unless the guaranty associations uniformly embrace them, and state action on the Model Act will need your strong support. Since guaranty associations are largely populated by representatives of life insurance companies, the ACLI Board of Directors is asking you to work collectively and cooperatively to address these issues. Your efforts will be instrumental in strengthening the guaranty system and in turn enhancing us to defend that system successfully.
We will continue to reach out to you as circumstances warrant, and we thank you for your help with this important initiative.
The letter was signed by Michael D. Fraizer (Genworth Financial), Theodore Mathas (New York Life Insurance Company), James T. Morris (Pacific Life Insurance Company), C. Robert Henrikson (MetLife), Gary C. Bhojwani (Allianz Life Insurance Co. of North America), James Boyle (Manulife Financial Services), Patrick A. Cozza (HSBC Insurance), James M. Cracchiolo (Ameriprise Financial, Inc.), Roger W. Crandall (Massachusetts Mutual Life Insurance Company), Michael G. DeKoning (Munich American Reassurance Company), Anthony M. Garcia (TIAA-CREF Life Insurance Company), Dennis R. Glass (Lincoln Financial Group), Thomas E. Henning (Assurity Life), Dennis L. Johnson (United Heritage Life Insurance Company), Donna H. Kinnaird (Swiss Re Life & Health America Inc.), Robert G. Leary (ING Insurance US), David N. Levenson (The Hartford), JoAnn M. Martin (UNIFI Companies), Andrew J. McMahon (AXA Equitable Life Insurance Company), Mark W. Mullin (AEGON USA, LLC), L. John Pearson (The Baltimore Life Insurance Company), Thomas E. Rattmann (Columbian Mutual Life Insurance Company), John S. Roberts (Assurant Employee Benefits), J. Eric Smith (USAA Life Insurance Company), John R. Strangfeld (Prudential Financial, Inc.), Kirt A. Walker (Nationwide Financial), Matthew E. Winter (Allstate Financial), John E. Schlifske (The Northwestern Mutual Life Insurance Company), Donald A. Stewart (Sun Life Financial), and Larry D. Zimpleman (Principal Financial Group).
Staff Contact - Bill O'Sullivan Booker T. Washington/Universal Life Insurance Companies (Alabama)Early Access Distribution Made
During the week of March 6, 2011, NOLHGA distributed early access funds to the guaranty associations affected by the Booker T. Washington and Universal Life estates. Distribution schedules were calculated based on cash value, and deposits were also taken into account. Accordingly, not all states received a distribution at this time. Amounts distributed totaled $3.7 million from the Booker T. Washington estate and $3.1 million from the Universal Life estate. Please contact Meg Melusen if you have any questions.
Task Force Chair - Rusty Haydel; Staff Contact -Assessments Presentation Scheduled for April MPC Meeting
The Administrators Education Steering Committee will conduct a panel discussion on guaranty association assessments at the April 2011 MPC meeting in San Antonio. The presentation will be held Monday, April 4, from 8:30 a.m. to 9:45 a.m.
A panel of guaranty association administrators will be moderated by Mike Surguine (Arizona), and the session will address issues such as Class A assessments, issues relating to Medicare Parts C and D, the pros and cons of different assessment methods, and assessment credits and refunds.
Administrators were sent a survey earlier this month to determine the best assessment topics to address, and they should submit their responses by March 20. Anyone planning to attend the presentation should also RSVP to Holly Wilding by March 20. This will allow us to ensure that we have enough space (and breakfast) for all attendees.
Staff Contact -