American Standard Life (OK)
Distribution Made
On February 28, NOLHGA distributed early access funds from the ASL estate in the aggregate amount of $4,673,402 to the following guaranty associations: AK; AL; AR; AZ; HI; IN; KS; LA; MS; NC; NE; NV; OH; OK; OR; TX; UT; WA; and WY. A distribution schedule showing how the funds were allocated among the GA claimants was sent out separately on February 27. Please contact Bill O'Sullivan with any questions regarding this distribution.
Task Force Chair - Andrea Bowers; Staff Contact - Bill O'Sullivan American Chambers Life (OH)Distribution to be Made
Next week, NOLHGA will distribute to most of the affected Guaranty Associations a check for their share of premiums collected by Antares from June through December, 2000, relating to American Chambers policies. The distribution is approximately $5.2 million.
Task Force Chair - Chuck Gullickson; Staff Contact -MPC Matters
MPC Chair William Falck (FL) has named the following to the MPC Executive Committee for 2001: Gerald Backhaus (MN); Andrea Bowers (SC); Art Dummer (UT); Jack Falkenbach (DE); Mark Femal (WI); Jack King (AZ); Peter Leonard (CA); and Mike Marchman (GA).
In other MPC news, updated task force listings, including assigned NOLHGA staff were distributed at the February MPC Meeting. If you did not receive one, please contact Mary Ellen Cappetta at 703.787.4114.
Staff Contact -Federal Priority Statute Litigation
NOLHGA has been contacted regarding the possibility of filing an amicus brief in connection with recently filed federal priority statute litigation pending in the United States District Court for the District of Massachusetts. This litigation has arisen in connection with the 1989 insolvencies of American Mutual Liability Insurance Company and American Mutual Company of Boston, and involves the federal government's challenge of the Massachusetts priority statute and assertion of priority treatment for federal claims ahead of guaranty association claims. The government has also taken the position that it is not bound by the time limitations set in accordance with state law for filing claims against these estates.
In order to facilitate his efforts to make early access payments to the affected guaranty funds and to close out the estate, the Receiver has filed a complaint for declaratory judgment seeking a determination regarding the government's challenges. In response to the complaint, the government has filed a motion to dismiss arguing, among other things, that the Massachusetts priority scheme violates Fabe to the extent that guaranty association claims are treated as policyholder level claims, and that the federal government is not bound by state statutes of limitations or claims bar dates because such provisions fall outside of the protections of the McCarran-Ferguson Act.
Several of the affected P&C guaranty funds have filed a motion to intervene in the case, as well as a motion to stay ruling on the government's motion to dismiss pending determination of their motion to intervene. The court has denied the motion to stay, noting that the guaranty funds' motion to intervene will be heard in connection with the motion to dismiss, and that the funds could file an amicus brief with respect to the motion to dismiss on or before March 19, 2001, which is also the due date for the Receiver's opposition to the motion to dismiss.
Pertinent pleadings, information and materials received in connection with this litigation have been forwarded to the amicus subgroup of NOLHGA's Legal Committee for consideration. To the extent NOLHGA were to file an amicus in support of the Receiver's position in this case, the March 19th filing deadline would similarly govern. No hearing has yet been scheduled in this case.
Staff Contact - Joni ForsytheConflict Survey and Antitrust Certification Due April 15
NOLHGA's Conflicts Policy and annual questionnaire was sent out yesterday to all NOLHGA personnel and representatives, including its Board members, staff, committee and task force members and consultants. The questionnaire is required to be completed on an annual basis by all persons subject to NOLHGA's Conflicts Policy. This year's questionnaire covers activities occurring from January 1, 2000 through the date of the response.
In addition, NOLHGA's Antitrust Policy, Implementation Guidelines and annual certification forms have been sent to all NOLHGA personnel and representatives referenced above, as well as all NOLHGA members. As is the case with NOLHGA's conflicts policy, the antitrust policy requires an acknowledgement of receipt and an annual certification of compliance.
Please review these materials and return the completed conflicts questionnaire and antitrust certification to Aimee Frye at NOLHGA no later than April 15, 2001. Your assistance in this matter is greatly appreciated.
Staff Contact - Joni ForsytheLegal Seminar Hotel Rate
NOLHGA'S 10th Annual Legal Seminar is scheduled for July 12 -13th at the New York Marriott Marquis on Broadway in the heart of Times Square. NOLHGA negotiated a very favorable rate of $199 for guest rooms, and the rate will be honored the entire week of the seminar as well as the following weekend. The Hotel's reservation lines for the seminar are (212) 704-8700 or (212) 704-8740. Please call Aimee Frye at NOLHGA at (703) 787-4115 if you have any questions or need assistance in securing a reservation.
Staff Contact -ETC.
New York Directory Change
Carl Micarelli is the new administrator for the New York association. He can be reached at Debevoise & Plimpton, 875 Third Avenue, New York, NY, 10022. His phone is 212.909.6813, his fax is 212.909.6836.
Staff Contact -