Bankers Commercial Life (TX)
Claim Reports Mailed
Packages containing claims reports for the period April 7, 2000 through June 26, 2000 will be mailed to affected guaranty associations for delivery early next week. Each package includes payment instructions for funding of the claims.
Guaranty associations electing to participate in the TPA Service Agreement with United Teacher Associates Insurance Company ("UTA") should plan on funding this initial batch of claims as soon as possible. Funding of these claims will significantly reduce the backlog of claims currently being held at UTA.
As a reminder, the opt-out period for participating in the TPA Service Agreement with UTA ends August 10. Guaranty associations opting out of the agreement must notify Paul Peterson in writing. Also, should any guaranty association require special handling of any administrative process in connection with the TPA service agreement, please contact Paul Peterson as soon as possible so the necessary arrangements with UTA can be made.
As indicated in the July 27 Interim Report, there are approximately 46,000 medicare supplement claims that have been manually filed with UTA. Processing of this claims backlog has recently begun and will likely be completed within 45-65 days.
Task Force Chair -William Falck; Staff Contact - Paul Peterson National Affiliated Investors Life (LA)Refund Checks Sent
Packages containing refund checks of initial funding amounts and related closing documents regarding the assumption reinsurance transaction with Citizens Security and United Liberty Life Insurance Companies were mailed to affected guaranty associations on August 3 (for delivery on August 4). The package also includes the funding schedules reflecting June 30, 2000 values that were used for the July 7 closing.
Please contact Paul Peterson with any questions you may have regarding this material.
Task Force Chair -Chuck Gullickson; Staff Contact - Paul PetersonMPC and ADS Assessments Due
Second quarter assessments for 2000 Members' Participation Council (MPC) insolvency expenses and Assessment Data Survey Expenses were mailed to affected guaranty associations on August 4. Prompt payment to NOLHGA's lockbox is greatly appreciated
Staff Contact - Paul Peterson Executive Life (CA)Commissioner's Claims Returned to Federal Court
On July 26, 2000, the Conservation Court entered an order relinquishing its own jurisdiction to the extent necessary to allow the Commissioner's lawsuit against Altus Finance and others to proceed in a single forum in Federal Court. The Conservation Court's order was entered in response to a determination by the Federal Court, made in a tentative ruling issued June 28, 2000, that earlier orders entered by the Conservation Court prevented the Commissioner from pursuing his claims against many of the defendants in Federal Court, because the Conservation Court retained exclusive jurisdiction to consider such claims. The Conservation Court's order was entered to avoid a severing of the Commissioner's action into two lawsuits and permits the Commissioner to pursue all his claims against all the defendants in Federal Court.
In a related matter, attorneys seeking to represent Sergio Carranza Hernandez and other structured settlement holders in a class action, based on the allegations of fraud in the Commissioner's action against Altus Finance, have filed a new class action complaint in State Court. An earlier complaint filed on behalf of Mr. Carranza Hernandez was dismissed by the Federal Court on the ground that only the Commissioner had standing to make the claims alleged. In the new complaint, the plaintiffs have added new claims naming both John Garamendi and Chuck Quackenbush, former Commissioners of Insurance, as defendants. The plaintiffs have alleged that Mr. Garamendi breached fiduciary duties to them in connection with his handling of the ELIC rehabilitation, and they have alleged that Mr. Quackenbush breached fiduciary duties to them by retaining counsel, in his action against Altus Finance, who had formerly represented certain creditors of the ELIC estate.
Task Force Chair -Art Dummer; Staff Contact - MEMBERS' PARTICIPATION COUNCILAugust 16 - 18, 2000
SCHEDULE OF EVENTS
Hyatt at Fisherman's Wharf
San Francisco
Wednesday, August 16 Time Location
NOLHGA OFFICE All Day Balclutha Rm.
ACCOUNTING ISSUES COMMITTEE 1:00 pm - 5:00 pm Amador
AMERICAN STANDARD LIFE 3:00 pm - 4:00 pm Marin
CENTENNIAL LIFE 5:00 pm - 6:00 pm Solano
Thursday, August 17
NOLHGA OFFICE All Day Balclutha Rm
BANKERS COMMERCIAL LIFE 7:30 am - 8:20 am Solano
JOINT SEMINAR PLANNING COMMITTEE 7:30 am - 9:20 am Amador
ADMINISTRATOR'S EDUCATION STEERING COMMITTEE 8:30 am - 9:30 am Amador
THUNOR TRUST 8:30 am - 9:30 am Solano
MPC EXECUTIVE COMMITTEE 9:30 am - 10:00 am Marin
TASK FORCE ROUNDTABLE MEETINGSAmerican Chambers LifeExecutive Life (Working Lunch will be Served)Fidelity Bankers Life 10:15 am - 4:45 pm10:15 am - 12:15 pm12:30 pm - 2:30 pm2:45 pm - 4:45 pm Presidio RoomPresidio RoomPresidio RoomPresidio Room
RECEPTION 5:30 pm - 6:30 pm North Pt. Lounge
Friday, August 18
NOLHGA OFFICE 7:00 am - Noon Balclutha Rm.
BUFFET BREAKFAST 6:30 am - 8:00 am North Pt. Lounge
MID-CONTINENT LIFE 7:30 am - 8:20 am Solano
MEMBERS' PARTICIPATION COUNCIL MEETING 8:30 am - 11:30 am Presidio Room