Executive Life Insurance Company of New York (N.Y.)
Agreement in Principle Reached to Cover ELNY Policyholders
New York Governor Eliot Spitzer held a press conference on December 4, 2007, to announce what he described as "an agreement in principle" to address the financial problems of Executive Life Insurance Company of New York (ELNY), which has been in rehabilitation since 1991. The prepared text of Governor Spitzer's statement on ELNY can be found here, and an archived video recording of the press conference can be found here (the link may take a few minutes to load). NOLHGA's statement on the matter is available in the "Press Room" section of the NOLHGA Web site.
NOLHGA's ELNY Task Force, chaired by Jack Falkenbach (Delaware), continues to work with the New York Liquidation Bureau on the development of a resolution strategy for ELNY.
Task Force Chair - Jack Falkenbach; Staff Contact - Executive Life Insurance Company (Calif.)Requests for Defeasance Computations Due By Year-end
As in prior years, any participating guaranty association (PGA) contemplating the possibility of defeasance in 2008 must make a request for a defeasance computation in writing to Aurora before year-end 2007. According to the Enhancement Agreement, Aurora then has 60 days after year-end to calculate the PGA's defeasance amount, and the PGA has until the 150th day after the preceding December 31 (i.e., May 29, 2008) to decide whether or not to defease. Please note that notices should be sent to Aurora c/o CSC Financial Services Group at either of its new addresses:
55 Hartland Street
East Hartford, CT 06108
P.O. Box 4490
Hartford, CT 06147-4490
As in the past, NOLHGA will distribute a notice with additional information and a sample defeasance computation request (including the new addresses) on this subject to the PGAs in early December.
Task Force Chair - Art Dummer; Staff Contact - Kentucky Central Life Insurance Company (Ky.)Final Distribution and Closing Granted
On December 3, 2007, the Franklin Circuit Court entered an order granting the liquidator's motion for approval of final estate distributions, dissolution of Kentucky Central, and discharge of the liquidator. The liquidator anticipates making final distribution payments within the next two weeks. As part of that final distribution, guaranty associations will receive just over $157,500, which includes reimbursement of administrative expenses totaling $82,007 and an additional policy-level distribution totaling $75,500 to cover future claims on certain outstanding industrial life policies that were not transferred to an assuming carrier. Under the terms of the order, the liquidator will be discharged upon completion of the final distribution.
Task Force Chair - John Colpean; Staff Contact - Joni Forsythe Life & Health Insurance Company of America (Pa.)Final Accounting and Assumption Agreement Approved
On November 28, 2007, the Pennsylvania court signed and approved the Final Accounting and Petition for Distribution of the Life and Health Insurance Company of America (LHICA) Estate. This includes the proposal for the distribution of the LHICA estate; the Assumption Reinsurance Agreement with Philadelphia American Life Insurance Company; and the Acknowledgement and Agreement and Release between the liquidator, NOLHGA, and the participating guaranty associations. The closing and signing of the Assumption Reinsurance Agreement with Philadelphia American, as well as the distribution of estate assets, are expected to occur in the first quarter of 2008.
For an electronic copy of the entire filing or the approved order, please contact Joanna Akiyama at [email protected].
Task Force Chair - Linda Becker; Staff Contact - States General Life Insurance Company (Tex.)Assumption True-up Payments Due
The post-closing assumption true-up with New Era has been completed, and NOLHGA has received payment from New Era in the amount of $28,023.62. Although the net outcome of the true-up resulted in a payment from New Era, individual guaranty association results varied by state depending upon the business held in each state. Accordingly, some associations are making additional payments, while others will receive additional reimbursements. After offset for premium refunds, there are six states that have a balance due for the true-up. Please note that true-up payments are due no later than December 19, 2007. After those funds have been received, NOLHGA will make payments to the associations that are owed funds as a result of the true-up. Please call Joni Forsythe at 703.787.4103 if you have any questions.
Task Force Chair - Tad Rhodes; Staff Contact - Joni Forsythe