NAIC's Praeger to Speak at NOLHGA's Annual Meeting

Sandy Praeger, NAIC president-elect and the commissioner of the Kansas Insurance Department, will speak at NOLHGA's 24th Annual Meeting, which will be held at the Ritz-Carlton, Amelia Island, in Amelia Island, Fla., on October 9 and 10. Praeger, a former member of the Kansas state Senate and House of Representatives, was elected commissioner in November 2002 and again in November 2006. She is expected to discuss the NAIC's regulatory modernization initiative and other matters at the meeting.

More information on NOLHGA's 24th Annual Meeting and the MPC meeting on October 8 will appear in future issues of the NOLHGA Wire and in other NOLHGA publications. If you have any questions about the meeting, please contact Holly Wilding at [email protected].

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MPC Meets in Philadelphia

The Members' Participation Council (MPC) met in Philadelphia, Pa., on April 19, 2007. The following are summaries of task force insolvency reports presented during the meeting:

  Staff Contact - Sean McKenna Executive Life Insurance Company (Calif.)

The Executive Life MPC made a closed-session presentation.

Task Force Chair - Art Dummer;   Staff Contact - Bill O'Sullivan Life & Health Insurance Company of America (Pa.)

Task Force Chair Linda Becker (Kansas) reviewed the task force's recent activities and updated attendees on the liquidation/distribution plan recently agreed to by the liquidator. As part of the plan, the LHICA MPC unanimously passed a resolution releasing the liquidator from any obligations relating to the long-term-care policies so that the estate may close. The closing is expected to take place by year-end.

Task Force Chair - Linda Becker;   Staff Contact - Reliance Insurance Company (Pa.)

Task Force Chair Tad Rhodes (Oklahoma) reported that the task force has continued to respond to the liquidator's audit questions. He also provided an update on the status of the large disability policies. The task force plans to continue to request reimbursement for 2005 administrative expenses, work to resolve the large disability claims, respond to the liquidator's audit questions, and monitor asset recovery at a very high level.

Task Force Chair - Tad Rhodes;   Staff Contact - States General Life Insurance Company (Tex.)

Task Force Chair Tad Rhodes (Oklahoma) reported on recent task force activities, including completion of the quarterly proof of claim update; finalizing settlement of a dispute concerning March 2005 premiums, resulting in a recovery of $304,403.74; completion of work and submission of expenses related to the IAC audit report; and providing support and information at the request of the receiver in connection with pending officer and director litigation. Future activities will include allocation of the recovered premiums among the affected associations, post-closing accounting and true-up under assumption reinsurance agreements, monitoring and support for the receiver in connection with the pending litigation, continued quarterly proof of claim updates, review and analysis of the deputy receiver's quarterly financial reports, and support for the receiver's efforts to wind up and close the estate.

Task Force Chair - Tad Rhodes;   Staff Contact - Joni Forsythe Universe Life Insurance Company (Idaho)

Task Force Chair Tad Rhodes (Oklahoma) reported that the Idaho Supreme Court recently granted a portion of the agricultural trusts' appeal of a district court ruling that denied their claim against the estate. The task force is considering how to proceed.

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

Structured Settlements and NAIC Model Act Review Highlight MPC Meeting

In addition to the task force reports, the MPC general session also featured a closed-session presentation on new task force discussions. NOLHGA Senior Vice President and General Counsel Bill O'Sullivan updated attendees on the NAIC's review of the Life & Health Insurance Guaranty Association Model Act, and NOLHGA President Peter Gallanis reported on recent developments concerning financial services modernization on Capitol Hill. MPC Chair Bart Boles (Texas) reported on the activities of the NOLHGA Board and the MPC Executive Committee.

The meeting also featured a seminar on structured settlement annuities sponsored by the Administrators' Education Steering Committee. The seminar was conducted by Tom Ronce (Pacific Life Insurance Company) and Joel Glover (Rothberger, Johnson & Lyons). In addition, a technology workshop was presented by NOLHGA's Kenny Bullock and Dan Hicks.

  Staff Contact - Sean McKenna

MPC Meeting Presentations Online

A number of PowerPoint presentations from the April 2007 MPC meeting have been posted online for access by authorized users (in general, NOLHGA Board members, guaranty association administrators, and members of guaranty association boards). To access the materials, go to the Events section of the NOLHGA Web site and scroll down to the Past Events heading. Select the appropriate MPC meeting dates and then click "Go" to be taken to the meeting Web page. Users will have to log in to access the files.

If you have any trouble accessing the meeting Web page or the presentation files, please contact Dan Hicks at [email protected] or 703.787.4112.

  Staff Contact - Sean McKenna

New Insurance Commissioner in Connecticut

Thomas R. Sullivan, a 20-year veteran of the insurance industry, was confirmed on April 18, 2007, as Connecticut's newly appointed insurance commissioner. Sullivan was appointed by Governor M. Jodi Rell and replaces Connecticut's first female commissioner, Susan Cogswell, who accepted the position of deputy insurance commissioner. Sullivan, a former claims executive with The Hartford, most recently served as senior vice president of a large property/casualty claims TPA that is a wholly owned subsidiary of Hartford Financial Services Group. He holds a Bachelor's Degree in Justice and Law Administration from Western Connecticut State University and a Master's Degree in Business Administration from the University of Connecticut.

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