Senate Floor Debate on Regulatory Reform Moved Up

The Senate has moved up its timetable for floor deliberations on its version of regulatory reform legislation, the "Restoring American Financial Stability Act of 2010." It now appears that efforts will be made by Democratic leadership to commence floor debate in the next week or so, with a final vote scheduled possibly as soon as the week after that.

NOLHGA's Financial Services Modernization Committee continues to track activity on the bill and any developments in the House as well. Links to the Senate and House bills, along with articles discussing regulatory reform, can be found in the Financial Regulatory Reform forum on the GA Message Boards, which can be found in the Member Resources menu in the password-protected section of the NOLHGA Web site. Access to the boards is currently restricted to guaranty association administrators, who must register on the bulletin boards homepage before they can view the various forums and post messages on them.

  Staff Contact - Sean McKenna

MPC Meets in Albuquerque

The Members' Participation Council (MPC) met in Albuquerque, New Mexico, on April 13-15, 2010. Task force meetings were held for Executive Life Insurance Company of New York, Imerica Life and Health Insurance Company (Arkansas), Lincoln Memorial/Memorial Service Life Insurance Companies (Texas), Penn Treaty Network America/American Network Insurance Companies (Pennsylvania), Reliance Insurance Company (Pennsylvania), and Universal Life/Booker T. Washington Insurance Companies (Alabama).

The General Session featured closed-session presentations by Executive Life Insurance Company (California), Imerica Life and Health Insurance Company (Arkansas), and Medical Savings Insurance Company (Indiana) as well as an update on financial services regulatory reform by NOLHGA President Peter Gallanis and a briefing on MPC Executive Committee activity by MPC Chair Mike Marchman (Georgia).

On April 15, the Administrators Education Steering Committee (chaired by Candie Kinch of the Idaho association) conducted an educational session with presentations on long-term-care insurance (Charles Gullickson of the South Dakota association, Vince Bodnar of DaVinci Consulting Group, and Caryn Glawe of Baker & Daniels), security issues in the insurance industry (Nancy Baran of Prudential Insurance Company of America), and separate account products (Roger Harbin of Symetra Financial Corporation, Bill O'Sullivan of NOLHGA, and Kevin Griffith of Baker & Daniels).

The following task force insolvency reports were presented during the MPC General Session:

  Staff Contact - Sean McKenna American Community Mutual Insurance Company (Michigan)

Task Force Chair Frank Gartland (Ohio) conducted the first report for this new task force, which was formed shortly after the company was placed in rehabilitation on April 8, 2010. The task force has begun preliminary discussions with the receiver's team.

Task Force Chair - Frank Gartland;   Staff Contact - Bill O'Sullivan Golden State Mutual Life Insurance Company (California)

Task Force Chair Lowell Miller (North Carolina) reported that the California Conservation and Liquidation Office has identified a company to assume Golden State's business. The CLO hopes to finalize an assumption agreement this summer.

Task Force Chair - Lowell Miller;   Staff Contact - National States Insurance Company (Missouri)

Task Force Chair Randy Blumer (Wisconsin) announced the formation of the National States Task Force and the group's first meeting. The company was placed in rehabilitation on April 1, 2010.

Task Force Chair - Randy Blumer;   Staff Contact - Reliance Insurance Company (Pennsylvania)

Task Force Chair Tad Rhodes (Oklahoma) reported that the receiver will ask the affected associations to refund approximately $4 million in excess early access distributions. The task force is determining the allocation for each association and will notify the associations when this work is complete.

Task Force Chair - Tad Rhodes;   Staff Contact - Standard Life Insurance Company of Indiana (Indiana)

Task Force Chair John Colpean (Michigan) reported that the moratorium on surrenders and voluntary withdrawals has been extended until June 30--the deadline for filing a liquidation plan. He also updated attendees on the RFP process.

Task Force Chair - John Colpean;   Staff Contact - Universal Life/Booker T. Washington Insurance Companies (Alabama)

Task Force Legal Counsel Joel Glover (Rothgerber, Johnson & Lyons) explained a resolution authorizing the task force to enter into a service agreement with the receiver. The Universal Life/Booker T. Washington MPC unanimously passed the resolution.

Task Force Chair - Rusty Haydel;   Staff Contact -