American Life Assurance Corporation (Ala.)
Receiver Makes Final Distribution
On November 24, 2004, NOLHGA received funds totaling $745,512 from the estate of American Life Assurance Corporation (ALAC). These funds represent the affected state guaranty associations' distribution from the ALAC estate in accordance with the court's July 18 order approving the receiver's petition for approval of claims and to close the estate (a copy of the order is available on NOLHGA's IRC). Checks and wire transfers were sent to the affected associations on November 30. With this distribution, the guaranty associations have recovered a total of $725,076 (100 percent) of their expense claims and about $548,090 (10 percent) of their $5.3 million policy-level claims. The estate remains open at this time pending resolution of outstanding litigation.
Task Force Chair - Mike Marchman; Staff Contact - Joni Forsythe London Pacific Life & Annuity Company (N.C.)Claims Funding Reports Sent to GAs--Funding Due December 12
Philadelphia American Life Insurance Company, the TPA engaged by the guaranty associations to administer the policies of London Pacific policyholders who elected to continue the covered portion of their policies with the guaranty associations, sent the first claims funding reports to affected guaranty associations via e-mail on December 2. Funding is due no later than December 12. A cover memo with payment instructions (payment is to be sent directly to Philadelphia American) was included with the reports. Please be prompt with your payments, as checks will not be mailed until the funding is received from the guaranty associations.
Sample reports were included in the TPA agreement previously sent in early October. The reports include policy-level detail and categorize benefits into the following four groups: (1) periodic benefits (such as monthly interest withdrawals or annuitizations), (2) death claims, (3) policy loans, and (4) partial/total surrenders or 1035 exchanges. The reports list the current amount due for the respective claims along with cumulative payments and estimated guaranty association limits (provided to allow a quick check if a policy is nearing the limits).
Also, please note that the final claims funding report for 2004 will be sent to guaranty associations December 16, with funding due on or about December 24. Any transaction occurring after December 15 will not be processed until the first week of January 2005. This cutoff is necessary to ensure that the correct transactions are included in 2004 for 1099 reporting purposes. As a result, the first report for 2005 will be delayed by a few days to allow all requests made during the last two weeks of 2004 to be processed as soon as possible.
Finally, guaranty associations are reminded that funding reports will be sent on or about December 15 for the policyholders who elected to surrender their entire London Pacific contracts. Funding will be due to NOLHGA on or about December 22. The receiver anticipates that all checks will be mailed December 28-30. Because of the holidays, we would ask that guaranty associations ensure their funds are sent to NOLHGA by December 22 to guarantee that the funds will be available to London Pacific when they begin mailing checks.
Task Force Chair - Frank Gartland; Staff Contact - Paul Peterson