MPC Meets in San Diego

The Members' Participation Council (MPC) met in San Diego on April 10-12, 2012. Task force or MPC meetings were held for Executive Life Insurance Company of New York, Medical Savings Insurance Company (Indiana), National States Insurance Company (Missouri), Penn Treaty Network America/American Network Insurance Companies (Pennsylvania), and Universal Life/Booker T. Washington Insurance Companies (Alabama). The Executive Life Insurance Company (California) Task Force conducted a presentation on defeasance and made a closed session presentation during the MPC General Session, and the MPC Executive Committee and MPC D&O Coverage Subgroup met as well.

The MPC meeting also featured two Administrators Education Steering Committee presentations. The first, on Cloud Computing, was conducted by Candie Kinch (Idaho), Mike Marchman (Georgia), and Dan Hicks (NOLHGA staff). The second, a closed session on health insurance assessments, was moderated by Bart Boles (Texas) and featured Charles Gullickson (South Dakota), Frank O'Loughlin (Rothgerber Johnson & Lyons), Charles Richardson (Faegre Baker Daniels), Paul Peterson (NOLHGA staff), and Bill O'Sullivan (NOLHGA staff).

In addition to the task force report below, the General Session featured a presentation on the activities of the Security Advisory Committee conducted by Chair Candie Kinch (Idaho). The Coverage/Claims Committee gave a presentation on coverage of variable products conducted by Committee Chair John Colpean (Michigan) and committee member Kevin Griffith (Faegre Baker Daniels), and Bill O'Sullivan (NOLHGA staff) updated attendees on the progress of the Guaranty Association Laws Committee's GA Act Initiative and its plans for 2012. The General Session also featured an update on financial services modernization and regulatory activity by NOLHGA President Peter Gallanis and a briefing on MPC Executive Committee activity by MPC Chair Mike Marchman.

The following task force insolvency report was presented during the MPC General Session:

  Staff Contact - Sean McKenna Lincoln Memorial/Memorial Service Life Insurance Companies (Texas)

Task Force Chair Tad Rhodes (Oklahoma) reviewed the status of claims funding and premiums collected to date. He also presented an updated task force budget and reported that an early access distribution of $35 million is expected in April 2012 (absent any objections). That would bring the guaranty associations' total distributions to almost $68 million.

Task Force Chair - Tad Rhodes;   Staff Contact - Paul Peterson

Conflicts Surveys and Antitrust Certifications Due April 30

As part of NOLHGA's annual compliance regimen, NOLHGA is required each year to survey and obtain responses from all NOLHGA representatives concerning compliance with NOLHGA's Conflicts and Antitrust policies. In particular, NOLHGA's Conflicts Questionnaire must be completed on an annual basis by all NOLHGA Directors, committee and task force members, staff, and consultants. NOLHGA's Antitrust Policy requires an annual Certification of Compliance by all NOLHGA Directors, committee and task force members, staff, and consultants, as well as all MPC members (guaranty association administrators).

All recipients are asked to complete and submit the Conflicts Questionnaire and Antitrust Certification Form online using the link distributed via e-mail by Aimee Hoffman on April 9. We would like to encourage everybody to use the online submission method if possible. If you submit your responses online, you will be given the option to retain a PDF of your completed response forms. You can also print and return a hardcopy of your completed questionnaire and form to Aimee Hoffman via mail or fax (703.481.5209).

Whichever option you choose, please be sure to have your completed responses to Aimee Hoffman by Monday, April 30, 2012.

  Staff Contact - Joni Forsythe