Kentucky Central Life Insurance Company (Ky.)

Kentucky Central Ordered to Treat Post-Liquidation Premium Taxes as Class 1 Administrative Expenses

On cross motions for summary judgment from the state of Connecticut and the Kentucky Central liquidator, the Kentucky liquidation court issued an order on August 5, 2004, directing the liquidator "to pay the subject premium taxes accrued after the date of liquidation as a Class One distribution." The order of liquidation against Kentucky Central was entered on August 18, 1994, but the "subject premium taxes" sought by the state of Connecticut were for 1993 and 1994. It is not clear how much of the premium taxes being sought need to be paid as an administrative expense under the order, and the liquidator's counsel is considering whether further action is necessary.

Task Force Chair - John Colpean;   Staff Contact - Joni Forsythe London Pacific Life & Annuity Company (N.C.)

Appeal Period Ends

The time for an appeal of the London Pacific Order of Liquidation and the order approving the exchange transaction with Hartford Life expired on August 11, 2004. Hartford Life began sending the exchange election materials to eligible policyholders on August 12. Guaranty associations should anticipate receiving calls from policyholders concerning the exchange early next week.

In addition, guaranty associations were sent via e-mail a state-specific file containing copies of the Contract Information Statement that will be included in the exchange materials mailed to policyholders and an updated Exhibit D (as of June 20, 2004). Please contact Gerard Maglio (202.481.8601) should you have any problems opening the files.

In related news, Hartford Life has mailed the assumption certificates to policyholders in regard to the closing of the agreement on the payout annuity and supplemental contract blocks of business.

Task Force Chair - Frank Gartland;   Staff Contact - Paul Peterson