August 4, 2023
MPC Meets in Chicago
The Members’ Participation Council (MPC) conducted a meeting on July 26, 2023, in Chicago and online. The MPC General Session featured:
- Closed-session (affected guaranty associations only) presentations by the task forces for Global Bankers Insurance Group (North Carolina), North Carolina Mutual Life Insurance Company (North Carolina), Penn Treaty Network America/American Network Insurance Companies (Pennsylvania), and Senior Health Insurance Company of Pennsylvania (SHIP).
- Comments from NOLHGA Chair Nancy Davenport on the recent announcement that former Connecticut Insurance Commissioner Katie Wade has been named NOLHGA President, replacing Peter G. Gallanis, who is retiring.
- The MPC Chair Report, during which MPC Chair Margaret Sperry (Rhode Island) reported on the important work underway by the GA Administrator Curriculum Committee (which includes Bart Boles (Texas), Tad Rhodes (Colorado and Oklahoma), Frank Knighton Jr. (Georgia), and Tom Sullivan (Iowa)) to develop a compilation of up-to-date resources on key operational and technical issues that Administrators can access readily. She also reported that on July 31, Pamela Epp Olsen (Minnesota and Nebraska) and Tom Sullivan, Co-Chairs of the MPC Chair Preference Poll Committee, would send Administrators a memo on the automated process for appointing the MPC Chair for 2024 and encouraged Administrators to participate in the confidential First Stage Balloting.
- The NOLHGA Management Report, presented by NOLHGA President Peter Gallanis and NOLHGA Executive Vice President and Chief Operating Officer Mike Heard.
- A presentation on cyber-liability insurance by Security Advisory Committee member Bart Boles (Texas).
- An update on the status of Friday Health (a health insurance group undergoing severe financial difficulties, with operating subsidiaries in Colorado, Georgia, Nevada, North Carolina, Oklahoma, and Texas) by Bart Boles (Texas) and Cindy Oliver (Lewis Roca Rothgerber Christie LLP).
- A closed-session (guaranty association representatives only) presentation by the Coverage/Claims Committee on registered index–linked annuities and joint annuities. The presentation was conducted by Committee Chair John Colpean (Michigan); committee members Art Dummer (Utah), Bill Fisher (Massachusetts), and Bill O’Sullivan (NOLHGA); and Peter Fabiankovic (Faegre Drinker Biddle & Reath).
- A meeting of the MPC Executive Committee.
- A Guaranty Association Executive Directors Roundtable on business continuity planning by MPC Executive Committee Business Continuity Plan Subgroup Chair Bart Boles (Texas), subgroup member Brad Taman (North Carolina), and Michele Robleto (Florida).
Florida GA Seeks Executive Director
The Florida Life & Health Insurance Guaranty Association is seeking an Executive Director. Desired qualifications include experience with the insurance company rehabilitation and liquidation processes and/or insurance regulatory work. Salary is commensurate with experience.
Overview of Position: The Executive Director has management responsibilities for the Association, including oversight of contractors; financial management and budget preparation; and support of the Board of Directors and committees, including preparation for the Annual Meeting. The position also includes interaction with the national guaranty association and state insurance regulators.
Key responsibilities include:
- Administration and operation of the Association according to its statutory obligations, following its Plan of Operation and taking directions from the Board of Directors.
- Oversight of consultants performing the following services: (1) Responsibility for prompt and accurate issuance of assessments by the Association to member insurers; (2) Comprehensive accounting services necessary to the operation of the Association, including but not limited to tax return preparation and calculation of health surcharges; (3) Preparation and filing of the Association’s required annual tax reports; (4) Management of relationships with the Association’s legal counsel and lobbyist; and (5) Coordination with an auditor on behalf of the Association and participation in the annual audit of the Association’s books and records, including participating in examinations of the Association by outside auditors and the Florida Department of Financial Services.
- Maintenance of files, records, and other information necessary or advisable under statutory and regulatory requirements; the Association Plan of Operations; or as requested by the Association’s Board of Directors, including an up-to-date roster of board members and board consultants.
- Review, update, and budgeting of the Association’s disaster recovery plan.
- Assist the Board of Directors in implementing and maintaining procedures and policies, including policies for conflict of interest, privacy, document retention, investment, and cash retention.
- Respond to inquiries from policy owners and their representatives, Directors, Florida and other state insurance departments, NOLHGA, receivers, and others having legitimate requests for information relating to the Association and its obligations.
- Management of Association banking and investment adviser relationships and other operational aspects of the Association finances and investments in accordance with Association policies.
- Preparation of annual reports, periodic reports, and other communications to the Florida regulators as required by applicable statutes and regulations, when directed by the Association, or when deemed appropriate in regard to the operations of the Association or performance of its obligations.
- Preparations and arrangements for the Annual Meeting of Members of the Association, the Annual Meeting of the Board of Directors, special meetings of the Board of Directors, and committee meetings as necessary, including the publication of any required notices, preparation of meeting agendas and materials well in advance of meetings, and prompt preparation of accurate minutes of such meetings.
- Participation in NOLHGA, the Members Participation Council (MPC), MPC Task Forces, and NOLHGA Committees on behalf of the Association and preparation of reports on individual insolvencies and other matters for Board of Directors’ information and, where called for, direction or decision.
- In conjunction with the Association’s Budget Committee, develop a budget for all administrative responsibilities approved by the Board of Directors and perform all administrative responsibilities within such budget.