Executive Life Insurance Company (Calif.)
Aurora Defeasance Calculation Mailed
On March 29, NOLHGA mailed Aurora's defeasance calculation to the ELIC participating guaranty associations. In prior years, the schedule was followed by an agreed-upon procedures report from Arthur Andersen. However, at its meeting in the round in Savannah in January, the task force voted to forgo a review of the defeasance calculation by Arthur Andersen this year. Accordingly, there will be no analysis of these schedules by Arthur Andersen.
Task Force Chair - Art Dummer; Staff Contact - First National Life Insurance Company (Ala.)Petition for Distribution Expected To Be Filed
The receiver anticipates filing a petition this week in the Circuit Court for Montgomery County, Ala., to make estate distributions to claimants. The petition calls for a 100 percent distribution to be made to priority-level claimants (guaranty association policy claims are included in this group) along with a 79 percent distribution to general creditors (in the FNLIC case, NOLHGA and guaranty association administrative expenses are classified at the general creditor level). As such, guaranty associations should receive 100 percent of their policy claims ($1,978,001.80) and 79 percent of their expense claims ($373,541.50). These amounts are based on the proof of claims information provided as of December 31, 2000.
The petition also seeks approval for the settlement of all claims between FNLIC, the receiver, and New South (the former holding company). The distribution calculation contemplates holdbacks for one remaining unresolved claim dispute and miscellaneous administrative items of the receiver.
It is hoped that the court will approve the petition within the next two to three weeks. Distributions should be made soon thereafter.
Task Force Chair - Mike Marchman; Staff Contact - Joni Forsythe Statesman National Life Insurance Company (Tex.)Proof of Claim Updates Requested
A memorandum was sent to all affected guaranty associations on April 2 requesting inception to date cost information as of December 31, 2001, for the purpose of updating the omnibus proof of claim with the receiver. Responses should be faxed to Candace Jennings or Paul Peterson at 703.481.5209 no later than May 15.
Task Force Chair - Neil Rucksdashel; Staff Contact - Universe Life Insurance Company (Idaho)Proof of Claim Updates Requested
A memorandum was sent to all affected guaranty associations on April 2 requesting calendar year 2001 only cost information needed to update the omnibus proof of claim with the receiver. These amounts will be combined with the previous reports submitted (which were inception to date as of December 2000). Responses should be faxed to Candace Jennings or Paul Peterson at 703.481.5209 no later than May 15.
Task Force Chair - Tad Rhodes; Staff Contact - Paul PetersonPreliminary MPC Schedules Posted On-line
A preliminary meeting schedule and general session agenda for the next MPC meeting, which will be held May 20-22 at the Hilton Columbus in Columbus, Ohio, have been posted on the meeting Web page. The schedule file is in PDF format.
Status reports and other meeting materials should be posted on the site in early May. Attendees will be notified when new information is posted on the site.
Members planning to attend the May MPC meeting are encouraged to register on-line at the meeting Web page no later than April 29. Please note that the cut-off date for reservations is also April 29, and attendees are encouraged to book their rooms early. When making reservations, mention the Group Code "NOL" to ensure the NOLHGA room rate of $159 a night. Should you encounter any problems making reservations before the cut-off date, please contact Karen Early at [email protected] or 703.787.4101 and she will be happy to assist you.
If you have any trouble accessing the MPC meeting Web page, please contact Bryan Owen at [email protected] or 703.787.4112. If you have any questions about the meeting, contact Karen Early.
Staff Contact - Sean McKenna