Pacific Standard Life Insurance Company (CA)
Liquidation Trust Dissolution Scheduled For May 11
The California Liquidation Office (CLO) and Hartford Life Insurance Company have reached a settlement with the Internal Revenue Service regarding the Internal Revenue Code Section 7702 issue. In addition, both the CLO and Hartford have reached settlements in all known outstanding litigation instituted by policyholders. It is expected that funding for both settlements will be obtained from the estate's retained assets, meaning there will be no reduction in the Liquidation Trust assets in which guaranty associations have a vested interest. The closing of the Liquidation Trust is expected to occur on May 11.
The working group is updating the cost calculations previously provided to guaranty associations so that administrators will have a realistic estimate of funding, which must be made by May 5. Administrators will receive a package the week of April 13 reflecting tentative costs associated with the second guaranty association enhancement payment, any supplemental payment benefits that may be provided and any distributions to guaranty associations for the whole life policyholders' share of the Liquidation Trust assets. Hartford assumed those policies at their full value and the guaranty associations were assigned any interest they may have in the Liquidation Trust assets. The package also will include payment instructions. It is not anticipated that guaranty associations will owe large amounts due to the offset provided from the whole life policies' interest in the Liquidation Trust assets. A final accounting is expected to occur within 60 days from the Liquidation Trust dissolution. Following that, it is expected that the CLO will close the Pacific Standard estate.
Task Force Chair -- Bart Boles; Staff Contact - Paul Peterson Centennial Life Insurance Company (KS)MEMBERS' PARTICIPATION COUNCIL Chairman Peggy Parker named the following people to the Centennial Life Task Force: Bart A. Boles, Texas; Andrea H. Bowers, South Carolina; T. Randolph Cox, West Virginia; and William E. Falck, Florida. Mark H. Femal, Wisconsin, is the task force chairman.
Task Force Chair -- Mark Femal; Staff Contact - Guaranty Reassurance Corporation (FL)THE SALE OF GRC's subsidiary, Cambridge Dry Goods, a women's clothing designer and wholesaler, headquartered in Boston, closed April 9. The company was purchased by management for $4 million. Two subsidiaries remain: Chataqua Airlines, based in Indianapolis and Cotton Ginny, based in Toronto, Ontario.
Task Force Chair -- Frank Gartland; Staff Contact - Bill O'SullivanETC.
Delaware Association Relocates
Effective April 9, the Delaware Life and Health Insurance Guaranty Association will be located at 220 Continental Drive, Suite 309, Newark DE 19713. New phone: 302/456-3656; new fax: 302/456-3680.
MPC Photographs
REMINDER: April 30 is the deadline to sign up for portrait photography at the June MPC meeting in Portland, Maine. Those requiring another form should call Krista Plumhoff at 703/787-4121.
CALENDAR
April 22 Kentucky Central Asset Management Committee, Lexington, Ky. April 30 Seventh ELIC installment payment due to Aurora April 30 Deadline to sign up for June MPC photographs May 10 Deadline for June MPC hotel reservations May 12-13 Joint NOLHGA/NCIGF Legal Committee, St. Louis
Staff Contact - Sean McKennaCONFERENCE CALLS
April 13 Centennial Life Working Group, 3 pm EDT April 17 Kentucky Central Task Force, 10 am EDT
Staff Contact - Sean McKenna