January 2009 MPC Schedule Available--Hotel Deadline Nears
A preliminary schedule for the January 2009 MPC meeting in Tampa, Florida, has been posted on the meeting Web page in the "Meeting Resources" section. The schedule is in PDF format, and users will need Adobe Acrobat Reader to view and print the materials. Acrobat Reader is available free from Adobe.
In other news, the reservation deadline at the Renaissance Tampa Hotel International Plaza is December 28, 2008. After that date, NOLHGA cannot guarantee room availability at the NOLHGA rate of $224/night plus tax.
If you have any trouble accessing the meeting Web page or preliminary schedule, please contact Dan Hicks at [email protected] or 703.787.4112. If you have any questions about the MPC meeting, contact Sean McKenna at [email protected] or 703.787.4106.
Staff Contact - Sean McKenna2008 Insolvency Cost Information Report Now Available
NOLHGA has issued its annual Insolvency Cost Information Report, which assists member companies in establishing accruals for life, annuity, and health guaranty association assessments pursuant to Statement of Statutory Accounting Principle No. 35 - Accounting for Guaranty Fund and Other Assessments (finalized March 2000 by the NAIC) and SOP 97-3 - Accounting by Insurance and Other Enterprises for Guaranty Fund and Certain Other Insurance-Related Assessments (released December 1997 by the AICPA). The report contains information regarding the cost of insolvencies, assessable premium by state, and summaries of each state's general assessment and premium tax offset provisions.
These reports have been issued by NOLHGA annually since 1992. This year's report is available for download from NOLHGA's Web site in the Facts & Figures--Insolvency Cost Files section.
The report contains the following data files:
Costs: An Excel workbook with individual insolvency cost information along with various summary schedules and premium information by state.
Report: A PDF file that includes commentary on various insolvencies along with the schedules from the Costs file. Also included are general assessment and premium tax offset state provisions along with premiums by state.
Download: A WinZip file containing both files.
In addition, there are two special attachments dealing with ELNY and the Lincoln Memorial/Memorial Service cost estimates that provide some general background and a range for the cost estimates related to those cases.
Please note that some of the financial schedules will print in very small text (particularly the summary schedules on pages 5 to 7 of the PDF file) and may be difficult to read. If the text is too small, it might help to set those pages to legal size and print them separately from the rest of the report.
Also, summary assessment called and refunded information has been included on each insolvency case for use by member companies in their accrual process as they deem necessary. This information is compiled from the annual assessment submissions of each guaranty association. It is not audited by NOLHGA; therefore, NOLHGA will not be able to address any questions that member companies may have on the accuracy or completeness of the information. Those inquiries need to be directed to the appropriate guaranty association.
Staff Contact - Paul Peterson Executive Life Insurance Company (California)Request for Defeasance Computation Due by Year-end
As in prior years, any participating guaranty association (PGA) contemplating the possibility of defeasance in 2009 must make a request for a defeasance computation in writing to Aurora before year-end 2008. 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 30, 2009) 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 the following addresses:
55 Hartland Street
East Hartford, CT 06108
P.O. Box 4490
Hartford CT 06147-4490
During the week of December 7, NOLHGA distributed to the PGAs a notice with additional information and a sample defeasance computation request on this subject. The notice also asks that NOLHGA be notified if any PGA is considering defeasance in 2009.
Task Force Chair - Art Dummer; Staff Contact - Medical Savings Insurance Company (Indiana)Company Placed in Rehabilitation
On December 1, 2008, an order for rehabilitation was entered by an Indiana court against Medical Savings Insurance Company (MSIC), an Indiana domestic health insurer, commencing voluntary rehabilitation proceedings. MSIC's business consists primarily of high-deductible health insurance policies, many of which were coupled with health savings accounts. MSIC also has a small block of term life policies.
The company was licensed in 35 states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, and West Virginia. The majority of the company's business, however, seems to be focused in California, Florida, Indiana, Illinois, Nebraska, Ohio, and Virginia.
Task Force Chair - Dan Orth; Staff Contact - Joni Forsythe2009 NAIC Officers Elected
Members of the National Association of Insurance Commissioners (NAIC) elected the organization's 2009 officers at the NAIC's Winter National Meeting in Texas. The new officers are:
President: New Hampshire Insurance Commissioner Roger Sevigny
President-Elect: West Virginia Insurance Commissioner Jane Cline
Vice President: Iowa Insurance Commissioner Susan Voss
Secretary-Treasurer: Florida Insurance Commissioner Kevin McCarty
2008 IAIR Election Results Announced
The International Association of Insurance Receivers (IAIR) held its 2008 elections in December. Newly elected Board members include Philip Curley, Paula Keyes, and Doug Hart; Ken Weine and Mary Cannon Veed were reelected for their second terms.
NOLHGA would like to congratulate Lowell Miller (North Carolina) on his reelection to the office of Treasurer, and to thank both Lowell and Dan Orth (Illinois) for their continuing service on IAIR's Board as representatives of the Life and Health Insurance Guaranty System.
Staff Contact - Joni Forsythe