Consumers United (DE)
Early Access Distribution
The Consumers United receiver has made a $1 million early access distribution. The checks were distributed to affected guaranty associations on January 12. Any affected guaranty association that does not receive a check should contact Dana Woodward or Kristen Howell.
Task Force Chair - Peggy Parker; Staff Contact - Mid-Continent Life (OK)NOLHGA Files Amicus Brief
On January 6, 2000, NOLHGA filed an amicus brief in support of Oklahoma Insurance Commissioner Carroll Fisher's appeal of the application of the Oklahoma Open Records Act to certain Mid-Continent policyholder information. In its amicus brief, NOLHGA took the position that the information at issue was proprietary business information and its disclosure under the Open Records Act would harm Mid-Continent and ongoing efforts to protect the company's policyholders. NOLHGA also urged the court to recognize that the positions of insurance commissioner and receiver are legally separate roles and that the Commissioner in his capacity as receiver of a financially troubled insurer should not be subject to the requirements of the Open Records Act.
In other developments relating to the Mid-Continent case, the Receiver filed an Emergency Application for Stay of Trial Court Proceedings and a Petition for Writ of Prohibition and Mandamus with the Oklahoma Supreme Court. In his brief in support of the Petition, the Receiver asserts that the receivership court judge exceeded her authority by, among actions, granting three disappointed proposers and a policyholder the right to intervene in the proceedings for the purpose of challenging the Receiver's actions in formulating a plan for rehabilitating Mid-Continent, refusing to review the Receiver's recommendation for a rehabilitation plan and granting the disappointed proposers the opportunity to submit competing plans. Oral argument before a Referee appointed by the Oklahoma Supreme Court has been scheduled for February 11, 2000. Following oral argument, the Referee will recommend whether the Oklahoma Supreme Court should review the Receiver's petition.
Task Force Chair - Sonya Ekart; Staff Contact - Bill O'Sullivan Pacific Standard Life (CA)Estate Nears Close
As reported last week, the California Superior Court issued an order on December 30 that effectively closed the Pacific Standard estate. At that time, it was estimated that guaranty associations would eventually receive $325,000 from the estate by June.
NOLHGA received the first installment of the final estate distribution in the amount of $265,044 on January 14. Refund checks will be mailed to affected guaranty associations the week of January 17.
Task Force Chair - Bart Boles; Staff Contact - Paul Peterson Statesman National Life (TX)Litigation Agreement Opt-Out Notices Sent
NOLHGA mailed to affected guaranty associations the week of January 10 an opt-out notice regarding a litigation agreement with the Special Deputy Receiver. This agreement was approved by the Members' Participation Council at its October meeting in Indian Wells. Affected guaranty associations will have 30 days from the receipt of the agreement to opt-out if they do not wish to participate in the agreement.
Task Force Chair - Neil Rucksdashel; Staff Contact -Members' Participation Council Executive Committee
Peggy Parker, Chair of the Members' Participation Council (MPC), announced that she has reappointed all members of the MPC Executive Committee. The 2000 Executive Committee members are: Peggy Parker, Chair; Andrea Bowers (SC); Art Dummer (UT); Jack Falkenbach (DE); Mark Femal (WI); Mike Marchman (GA); and Dan Orth (IL). Dana Woodward will serve as the principal NOLHGA staff contact.
CALENDAR/CONFERENCE CALLS
January 17 NOLHGA Offices Closed
January 18 Universe Life Task Force Teleconference 1 pm EST
January 26 Legal Committee Claims Valuation Subgroup Meeting, Dallas, TX
January 31 Compensation Committee Meeting, San Diego, CA
Jan. 31-Feb. 1 NOLHGA Board of Directors Meeting, San Diego, CA