National Affiliated Investors Life (LA)
Liquidation Order Entered
On April 26, the Ninth Judicial District Court of Louisiana entered a final order of liquidation for National Affiliated Investors Life Insurance Company. In addition, a separate order was issued approving both the assumption reinsurance and early access agreements. For purposes of guaranty association triggering, the liquidation order will be effective on the closing date of the assumption reinsurance agreement between the estate, participating guaranty associations, Citizens Security Life Insurance Company and United Liberty Life Insurance Company. This approach allows the 60-day appeal period in Louisiana to be completed prior to the closing of the assumption transaction. Closing is anticipated in early July.
Opt-in packages will be mailed to affected guaranty associations by May 1 and will provide for the standard 30-day opt-in period. Anticipated guaranty association funding for the assumption reinsurance transaction is estimated to be between $2.7 and $3.1 million assuming no estate asset distributions.
Task Force Chair - Chuck Gullickson; Staff Contact - Paul Peterson Universe Life (ID)Settlement Hearing Rescheduled
The Liquidation Court has rescheduled a hearing on the settlement agreement for May 19. As reported in the February 4 Weekly Wire, the settlement agreement between the Centennial and Universe Liquidators provides, among other things: 1) a mechanism to end all pending litigation and claims between Universe, Centennial and AXA RE; 2) a payment of $1,025,000 to the Universe estate; and 3) a class IV general creditor claim of $1.97 million to Universe in the Centennial liquidation proceedings. The original hearing was scheduled for February 18, but was postponed so that the estate could respond to an objection to the settlement.
Task Force Chair - Tad Rhodes; Staff Contact - Paul Peterson Executive Life (CA)Aurora and New California File Motion to Dismiss
As reported during the February MPC Meeting, as well as in correspondence to the ELIC participating guaranty associations, the California Insurance Commissioner filed a Third Amended Complaint in February adding, among others, Aurora and its parent, New California Life Holdings, as defendants in the Altus Finance litigation. Last week, Aurora and New California jointly filed a motion to dismiss the federal claims against them based on the grounds that for the matters alleged, Aurora and New California are subject only to the jurisdiction of the state liquidation court.
Task Force Chair - Art Dummer; Staff Contact -CALENDAR/CONFERENCE CALLS
May 2 Compensation Committee Meeting, Tysons Corner, VA
May 2 Audit Committee Meeting, Tysons Corner, VA
May 3 Board of Directors' Meeting, Tysons Corner, VA
May 9 Legal Committee Meeting, Orlando, FL
May 17-19 Members' Participation Council Meeting, Minneapolis, MN
July 20-21 NOLHGA Legal Seminar, Boston, MA