Hotel Rooms for Annual Meeting Filling Up

The Monarch Hotel in Washington, D.C., site of NOLHGA’s Annual Meeting, has informed us that the room block for the meeting is filling up. Anyone who has not registered and/or made hotel reservations for the meeting should do so in the next few days. The deadline for meeting registration and hotel reservations is October 8.

“The Direction of Change,” NOLHGA’s 19th Annual Meeting, will take place on October 31 and November 1, 2002; an MPC meeting will be held on October 30. To register for both meetings, go to the Annual Meeting Web page and click on “Registration.” Once there, fill out the registration form, print it, and mail the form to NOLHGA with your registration fee.

For hotel reservations, contact the Monarch at 202.429.2400 or toll-free at 877.222.2266. The hotel also has a Web site. The Annual Meeting Web page contains additional information on the hotel, as well as a revised schedule of events and other important meeting information.

If you have any questions about your meeting registration, please contact De Gadd at 703.787.4121 or [email protected].

  Staff Contact - De Gadd First Capital Life Insurance Company (Calif.)

First Capital Life Estate Closes

On July 2, 2002, the California Conservation Court entered an order approving the final accounting and closing the estate of First Capital Life Insurance Company.

First Capital Life was placed into rehabilitation on May 14, 1991. A rehabilitation plan proposed by Pacific Mutual Life Insurance Company (now Pacific Life) was implemented through the formation of a Pacific Mutual subsidiary, Pacific Corinthian Life. Although NOLHGA was never a party to the rehabilitation plan, most of the 48 affected guaranty associations entered into an ancillary agreement with Pacific Mutual whereby the guaranty associations agreed to abate their assessments against First Capital Life at the end of the rehabilitation period in exchange for payment of a proportion of the abated assessments up to $4 million. Later, when questions arose regarding the interpretation of the agreement and the amount owed to the guaranty associations, the parties reached a settlement of $2 million, which was distributed to the guaranty associations in December 1996.

The First Capital Life Task Force will be formally “discharged” at the upcoming MPC meeting in October.

Task Force Chair - Peggy Parker;   Staff Contact - Inter-American Life Insurance Company (Ill.)

Receiver Makes Early Access Distribution

The receiver for Inter-American is making an early access distribution totaling more than $18.2 million to the affected guaranty associations participating in the estate’s early access agreement. According to OSD officials, checks were mailed directly to the participating associations on September 25. NOLHGA does not yet have any information regarding the allocation breakdown of this distribution, but we expect to receive that information within the next few days and will make it available upon receipt.

The actual total for this distribution is $18,241,110, bringing total distributions to date to the guaranty associations to approximately $49 million. According to one OSD official, the anticipated total recovery for the guaranty associations from the Inter-American estate is expected to be approximately 30 percent of their respective claims. The receiver hopes to make a final distribution and close this estate in 2003.

If your association does not receive its check, please inform NOLHGA so that we can follow up with the OSD. Questions about the distribution should be directed to Joni Forsythe (703.787.4103 or [email protected]).

Task Force Chair - William Falck;   Staff Contact - Joni Forsythe