Guarantee Security Life Insurance Company (Fla.)
Distribution Made from GRC Trust
During the week of December 7, 2003, the GRC Trust mailed distribution checks totaling $5 million to the guaranty associations affected by the Guarantee Security Life insolvency. The GRC Trust was established in 2002 to resolve GRC's remaining liabilities and assist with the closeout of the GSLIC estate. GSLIC estate closure is expected in early 2004 following the wrap-up of certain estate issues such as end-of-receivership audits and reservation of amounts for potential tax liabilities.
Task Force Chair - Frank Gartland; Staff Contact - Bill O'SullivanMore GAs Debut Web Sites
A number of state guaranty associations have unveiled Web sites over the past few weeks. With the new sites going online, more than 20 guaranty associations now have active Web sites. They are:
California:www.califega.orgColorado: www.lhipa.orgHawaii: www.hilifega.orgIdaho: www.idlifega.orgKansas: www.kslifega.orgKentucky:www.kylifega.orgMinnesota:www.mnlifega.orgMontana:www.mtlifega.orgNebraska:www.nelifega.orgNorth Carolina:www.nclifega.orgNorth Dakota:www.ndlifega.orgNevada:www.nvlifega.orgNew York:www.nylifega.orgOklahoma:www.oklife.orgOregon:www.orlifega.orgRhode Island:www.rilifega.orgSouth Carolina:www.sclifega.orgSouth Dakota:www.sdlifega.orgTennessee:www.tnlifega.orgTexas:www.txlifega.orgVirginia:www.valifega.orgVermont:www.vtlifega.orgWashington:www.walifega.orgWisconsin:www.wilifega.orgThe Colorado, Nebraska, Oklahoma, South Carolina, and Texas associations created their own Web sites, while the other associations created their sites using the template designed by NOLHGA's State GA Web Site Development Committee. These sites are hosted by NOLHGA, but the site content is controlled by each association.
Other guaranty associations are in the process of building Web sites using the template created by the committee. If any associations have questions about the template or would like to begin building a Web site, please contact Sean McKenna at 703.787.4106 or [email protected]. Also, if any association Web site is missing from the above list, please contact Mr. McKenna.
Staff Contact - Sean McKennaAssessment and Capacity Reports Posted to Web Site
Each year, NOLHGA compiles information on assessment activity--whether assessed, called (billed), or refunded--from guaranty associations. This information is compiled in reports such as:
1. Annual amounts assessed and called (billed to member companies) as well as estimated capacity
2. Annual amounts assessed and called as well as capacity sorted by state and year
3. Summary amounts assessed and called by insolvent company
These reports are now available on NOLHGA's Web site in the password-protected extranet. Users must log in to access the reports, which can be found in the "Special Reports" section. Please note that only guaranty association administrators, guaranty association staff, guaranty association board members, and insurance department personnel are allowed access to this information.
The reports cover the period from 1988 to 2002 and contain assessment information on approximately 200 insolvent companies. If any guaranty association personnel note an error in the data, please submit corrected information to Paul Peterson at [email protected].
Staff Contact - Paul PetersonClass-Action Reform Bill Makes Slow Progress
The program for NOLHGA's 12th Annual Legal Seminar in August 2003 included a panel discussion on the effects of class-action litigation in the insurance industry and the consequences of having judges and juries ruling on complex insurance matters typically in the bailiwick of insurance regulators. A class-action reform bill (H.R. 1115, the "Class Action Fairness Act") was introduced in March 2003. In his testimony before the House Judiciary Committee in May, D.C. Insurance Commissioner Lawrence H. Mirel (a participant in the Legal Seminar panel) urged the committee to consider an "exhaustion of administrative remedies" provision in this bill or future legislation. Such a provision would require plaintiffs to demonstrate that they tried and failed to obtain relief from a regulator (in cases where administrative remedies are available) before being allowed to file their complaint in court.
Recent compromises on the bipartisan bill suggest that a vote will be taken in the Senate when it reconvenes in February 2004. Sen. Charles Schumer (D-N.Y.) indicated that the compromise bill would "knock out the egregious practice of forum shopping, which allows a local court in a corner of America to make national policy, while at the same time protecting the rights of individuals to seek redress on serious cases."
Staff Contact -ACLI Unveils Bank Insurance Study
In October 2003, the American Council of Life Insurers (ACLI) published the results of a yearlong study of bank insurance in the marketplace, conducted in conjunction with its strategic partners and technical consultants Baker & Daniels, CF Effron Company, and KPMG. In an effort to explain the lack of enthusiasm for bank/insurer cooperation in the life insurance product area, the 96-page report provides a detailed analysis of the cultural differences between banks and life insurers and what can be done to minimize the separation and promote the sale of more insurance products through banks. The report, Bridging the Cultural Divide Between Banks and Life Insurers, is available through the ACLI Publications Department at 800.589.2254. The cost is $75 for ACLI members and $250 for non-members.
Staff Contact -