January 2012 MPC Meeting Hotel Reservation Deadline Approaching
The deadline for making hotel reservations for the January 2012 MPC meeting in Orlando is December 19, 2011. After that time, NOLHGA can no longer guarantee the special rate of $159/night plus tax at the Hyatt Regency Grand Cypress, the host hotel for the meeting.
Hotel reservations can be made through the meeting Web page, which also offers a preliminary meeting schedule, online registration, and other meeting information.
If you have any trouble accessing the meeting Web page, please contact Dan Hicks at [email protected] or 703.787.4112. If you have any questions about the meeting, contact Sean McKenna at [email protected] or 703.787.4106.
Staff Contact - Sean McKenna Executive Life Insurance Company (California)Request for Defeasance Calculation
As in prior years, ELIC participating guaranty associations (PGAs) contemplating the possibility of defeasance in 2012 must make a written request to Aurora for a defeasance calculation before year-end 2011. Submitting such a request on a timely basis will preserve a PGA's option to defease but will not result in the PGA being obligated to defease. In other words, there is no downside to a PGA submitting a request for a defeasance calculation.
In light of the favorable discount rate (fixed at 6% as of 2011) used for calculating the defeasance payment, the ELIC Task Force encourages all PGAs to submit a defeasance calculation request before year-end so they may preserve their ability to consider making a defeasance payment in 2012.
On November 23, 2011, NOLHGA distributed a memo reminding PGAs to make a defeasance calculation request; the memo included a sample letter for making that request (which included the appropriate parties and addresses to send the request). If anyone needs an additional copy of the memo and the sample request, please contact Meg Melusen.
Finally, the ELIC Task Force is planning to distribute updated information to assist the PGAs in deciding whether to defease their obligations in 2012 and also will make a presentation on this topic at the January 2012 MPC meeting.
Task Force Chair - Art Dummer; Staff Contact - Bill O'Sullivan National Heritage Life Insurance Company (Delaware)Early Access Distributed Last Week
NOLHGA recently received the fourteenth early access distribution from National Heritage Life Insurance Company in the amount of $5 million. On November 22, 2011, NOLHGA distributed these funds to the affected guaranty associations according to their proportional share, along with a relatively small amount of prior early access distributions repaid by certain guaranty associations totaling $111,928. For a copy of the distribution schedule, or if there are any questions, please contact Meg Melusen at 703.787.4130 or [email protected].
Task Force Chair - Dan Orth; Staff Contact -NOLHGA Submits Testimony to House Financial Services Committee
On November 16, 2011, NOLHGA President Peter Gallanis submitted written testimony to the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity. The testimony, which was submitted at the invitation of the Subcommittee Chair for the hearing "Insurance Oversight and Legislative Proposals," addressed the history of the life and health insurance guaranty system, how it operates, and its ability to protect consumers in a challenging economic environment. The National Conference of Insurance Guaranty Funds (NCIGF) submitted testimony on the property and casualty guaranty system.
A PDF file of NOLHGA's testimony can be found on the NOLHGA Web site in the Press Room under "Featured Articles."
Staff Contact - Sean McKenna