Legal Seminar Web Page Goes Live

The Web page for NOLHGA's 17th Annual Legal Seminar, which will be held on July 9 and 10, 2009, at the Ritz-Carlton in Chicago, is now live. The page features online registration for both the Legal Seminar and the July 7 and 8 MPC meeting as well as hotel reservation information, news about the Legal Seminar Welcome Reception at Chicago's Museum of Contemporary Art, and some highlights from the Legal Seminar program.

More information on NOLHGA's 17th Annual Legal Seminar and the MPC meeting will appear in the NOLHGA Wire and other NOLHGA publications in the near future. If you have any questions about either meeting, please contact Sean McKenna at [email protected].

  Staff Contact - Sean McKenna

MPC Meets in Oklahoma City

The Members' Participation Council (MPC) met in Oklahoma City, Oklahoma, on April 16 and 17, 2009. The following are summaries of task force insolvency reports presented during the meeting:

  Staff Contact - Sean McKenna American Chambers Life Insurance Company (Ohio)

Task Force Chair Chuck Gullickson (South Dakota) reported that there are still substantial assets in the estate, and the task force plans to meet with the liquidator to discuss an early access distribution. The task force and its legal counsel will also analyze a proposal by the liquidator that the guaranty associations take over the remaining litigation to speed the closing of the estate.

Task Force Chair - Chuck Gullickson;   Staff Contact - Executive Life Insurance Company (California)

The Executive Life task force made a closed-session presentation.

Task Force Chair - Art Dummer;   Staff Contact - Bill O'Sullivan Executive Life Insurance Company of New York (New York)

The ELNY task force made a closed-session presentation.

Task Force Chair - Jack Falkenbach;   Staff Contact - Lincoln Memorial & Memorial Service Life Insurance Companies (Texas)

The Lincoln Memorial/Memorial Service task force made a closed-session presentation.

Task Force Chair - Tad Rhodes;   Staff Contact - Paul Peterson Medical Savings Insurance Company (Indiana)

Task Force Chair Dan Orth (Illinois) reviewed the status of the Medical Savings estate, which has about 102 in-force policies remaining and approximately $24.5 million in unpaid claims. Under the service agreement with the receiver, the first batch of claims should be processed in early May. Task Force Legal Counsel Joel Glover (Rothgerber, Johnson & Lyons) reported briefly concerning approximately 67 lawsuits brought against Medical Savings by Medical Savings insureds and various hospitals or provider groups.

Task Force Chair - Dan Orth;   Staff Contact - Joni Forsythe Penn Treaty Network America Insurance Co./American Network Insurance Co. (Pennsylvania)

Task Force Chair Chuck Gullickson (South Dakota) presented an initial report on the companies, which provide long-term-care insurance to over 126,000 policyholders in all 50 states and the District of Columbia. The companies were placed in rehabilitation on January 6, 2009. The rehabilitator filed a preliminary report and plan of rehabilitation with the Pennsylvania court on April 6 and hopes to file a final plan of rehabilitation on or before October 2. In preparation for the filing, the rehabilitator expects to complete a liquidation analysis by August and make a determination whether to pursue a rehabilitation alternative before the October 2 filing date.

Policyholder inquiries can be directed to Penn Treaty Policyholder Services at 800.362.0700, ext. 3190, or www.penntreaty.com.

Task Force Chair - Chuck Gullickson;   Staff Contact - Shenandoah Life Insurance Company (Virginia)

Task Force Chair William Falck (Florida) provided attendees with some background information on the company, which was placed in rehabilitation on February 12, 2009. The Special Deputy Receiver is currently evaluating offers to purchase the company. More information can be found on the company's Web site.

Task Force Chair - William Falck;   Staff Contact - Standard Life Insurance Company of Indiana (Indiana)

Task Force Chair John Colpean (Michigan) reviewed the status of the company, which concentrated in annuity writing and has approximately $2 billion in liabilities. Special Deputy Rehabilitator Randy Lamberjack and Robert Panah (Acting Chief Operating Officer of Standard Life) provided information on the financial status of the company and on cost reductions and other progress made in the company's rehabilitation. More information on the company can be found in the FAQ section of the company's Web site.

Task Force Chair - John Colpean;   Staff Contact - The Thunor Trust Companies

Task Force Chair John Colpean (Michigan) reported that the task force and the receivers are discussing issues relating to guaranty association expense claims. The task force expects a distribution of approximately $1 million from the International Financial Services Life estate sometime in 2009. Task Force Legal Counsel Charlie Richardson (Baker & Daniels) reviewed the various litigation and asset recovery efforts being pursued by the liquidators.

Task Force Chair - John Colpean;   Staff Contact -

Annuities & Regulatory Reform Addressed at MPC Meeting

In addition to the MPC General Session, the Oklahoma City meeting also featured a presentation on annuity guarantees and their implications for guaranty association coverage by John Doscher, Chief Compliance Officer with Prudential Annuities Distributors, Inc. The presentation was conducted by the Administrators Education Steering Committee. NOLHGA President Peter Gallanis gave a wide-ranging report on recent developments concerning financial services modernization on Capitol Hill, and MPC Chair Bart Boles reported on the activities of the MPC Executive Committee and the NOLHGA Board.

  Staff Contact - Sean McKenna