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National Affiliated Investors Life (LA)

Timetable Developed

Task force representatives met with Louisiana Department of Insurance officials on September 16 to discuss the status of the case. It was agreed that an assumption bid process for the in-force blocks of business would be undertaken. It is anticipated that identification of an assuming insurer and closing of an assumption agreement could be completed in January/February, 2000. Due to the size of the blocks of business (approximately $3 million), a limited solicitation will be made to 10-20 companies that have purchased small blocks of business in the past through NOLHGA or state guaranty associations. Anticipated upcoming key dates include: completion of solicitation - October 13; due diligence period end - November 15; bid due date - November 24; completion of negotiations - December 31; and court approval and closing - January/February 2000.

A conference call was held with the task force on September 22 to review the above time frame. The Rehabilitator agreed that the bid process will be administered through NOLHGA.

Task Force Chair - Chuck Gullickson; Staff Contact - Paul Peterson Confederation Life (MI)

Final Distribution Forthcoming

The Confederation estate is preparing to make a final distribution to GIC contractholders and participating guaranty associations. As a result of these distributions, GIC contractholders will be "paid-in-full" under the plan, and guaranty associations will recover 100 percent of the amounts funded by them, plus interest. The distributions will be made to participating guaranty associations on or about September 24

Task Force Chair - Chuck LaShelle; Staff Contact -

Legislation Proposed To Protect State's Rights

In June, House and Senate versions of the "Federalism Act of 1999" were introduced "to ensure the liberties of the people by promoting federalism, to protect the reserved powers of the States [and] to impose accountability for Federal preemption of state and local laws." If passed, the bills would require, among other things, that future rules and legislation promulgated by the federal government indicate why and to what extent new legislation preempts state law. For the insurance industry, the "Federalism Act of 1999" may serve to bolster the McCarran-Ferguson Act by addressing the issue of preemption during the legislative process.

The Senate version (S.1214) of the Act was introduced by Senator Fred Thompson (R-TN) on June 10th, and has 13 co-sponsors. The House version (H.R.2245) was introduced by Representative David McIntosh (R-IN) and has 33 co-sponsors. The bill was approved by the Senate's Committee on Governmental Affairs in August, and reported to the Senate on September 16th.

Staff Contact -

Annual Meeting Registration

While the early registration deadline has passed, those considering attending NOLHGA's Annual Meeting October 20-22, are still welcome to register.

Additionally, representative designation forms for voting purposes are due to Holly Wilding by October 12. This form was included in a mailing to administrators and chairmen dated September 10. If you need another copy, please request one by e-mailing Holly at [email protected].