Kentucky Central Life (KY)
Liquidator Wins Partial Summary Judgment
On November 14, 2000, the Circuit Court in Kentucky entered an order of partial summary judgment in favor of the Liquidator in his case against the Bank of Louisville. Pursuant to that order, the Liquidator was awarded judgment on his claims of conversion, fraudulent transfer and one of his voidable preference claims. The partial summary judgment did not rule on the amount of damages the Liquidator was entitled to recover and the case will now proceed on the damages issues. The Liquidator seeks upward of $16 million from the Bank of Louisville in connection with a series of complex transactions where KCL essentially guaranteed the obligations of Dudley and Donald Webb's business ventures. If you would like to receive a copy of the Partial Summary Judgment order please call Aimee Frye at 703-787-4115.
Task Force Chair -John Colpean; Staff Contact - Joni Forsythe Great Republic Life (CA)Estate Closes
On November 17, 2000, the Special Deputy Insurance Commissioner filed a declaration with the Superior Court of California effectively closing the estate of Great Republic Insurance Company. In March of this year, the Court entered an order approving the final Report and Account of the Conservator and Liquidator for Great Republic and authorizing final distributions. The order also provided for termination of the proceedings and discharge of the Liquidator upon his filing of a declaration certifying that he distributed the assets of Great Republic in accordance with the court's order, and the filing a request for dismissal. The Commissioner's declaration and request for dismissal was filed on November 17, 2000, and states that the estate was closed concurrent with the filing of the declaration. Copies of the Commissioner's declaration will be mailed by NOLHGA to each of the ten affected state life and health insurance guaranty associations.
Staff Contact - Joni Forsythe National Heritage Life (DE)Trust Distribution Scheduled for Today
Today, a $15 million distribution is scheduled to be made from the NHL Trust to the twenty-three affected guaranty associations. With this 8th Trust distribution, the disbursements from the Trust to the guaranty associations total $183,577,894 since the inception of the Trust in 1996.
Task Force Chair -William Falck; Staff Contact - Unison Life (OK)Hearing Set for Asset Sale Agreement Approval
Pursuant to an October 25th motion filed by the Receiver, a hearing is scheduled for December 21 in Oklahoma County District Court to review the terms of an Asset Purchase Agreement. The agreement, which the Receiver signed in September, provides for the purchase of nearly all of Unison's remaining non-liquid assets for $300,000, a price that reasonably represents the fair market value of the properties according to an appraisal independently obtained by the Receiver. The Receiver is seeking a court order approving the agreement and instructing him to carry out its terms. An objection to the sale has been filed by Community Cornerstone Corporation ("CCC") whose previous contract to purchase some of the Unison estate assets was terminated. In support of its objection, CCC has filed a proposed agreement nearly identical to the Receiver's existing agreement. However CCC's competing offer would increase the purchase price by $35,000.
Task Force Chair -Bart Boles; Staff Contact -Legal Seminar Planning Begins
Planning has begun for the 10th annual NOLHGA Legal Seminar currently scheduled to take place in July, 2001. NOLHGA staff has conducted site visits to a number of hotel properties, and the focus of the search is New York City. Specific dates for the seminar will depend on hotel availability; an update will be provided as soon as a final site selection is made. Development of the program content will begin early next year. Please contact Meg Melusen with any questions or suggestions regarding topics to be included on the schedule. We appreciate the enthusiasm of all our members and will strive to make the 2001 Legal Seminar the best yet. Staff Contact -Meg Melusen 703.787.4130
Litigation Update-- November Edition
NOLHGA periodically publishes a Litigation to provide Guaranty Association Administrators a summary of coverage litigation (primarily pension GIC and plan challenge litigation) involving guaranty associations. The November 2000 Supplement was mailed to all Administrators on November 30th. The scope of litigation included in the November 2000 edition has been expanded beyond coverage litigation to include additional recent cases submitted by our members relating to issues that affect guaranty association interests. Please note that these materials are privileged communications regarding litigation, and should be kept confidential. In this regard, we ask that you not reproduce or distribute the Litigation Update without the express consent of NOLHGA. If you have any questions or would like an additional copy of the Update, please contact Aimee Frye at (703) 787-4115. As always, we ask that you please continue to notify us of any new litigation that your association becomes involved in or is aware of, as well as any significant developments in existing cases.
Staff Contact - Joni Forsythe