Kentucky Central Life Insurance Company (Ky.)

Final Estate Distribution Received

During the week of December 9, 2007, NOLHGA received the final distribution from the Kentucky Central Life estate totaling just over $157,500. This includes reimbursement of administrative expenses totaling $82,000 and an additional policy-level distribution totaling $75,500, which will be applied to cover claims under certain industrial life policies that were not transferred to an assuming carrier. In addition to these funds, NOLHGA is prepared to distribute approximately $260,000 representing interest accrued in NOLHGA's Kentucky Central escrow account. The task force is working on the allocation of each of these sources of funds and will be providing an allocation summary to affected associations as soon as it is available. In the meantime, feel free to contact Joni Forsythe if you have any questions.

Task Force Chair - John Colpean;   Staff Contact - Joni Forsythe

New Accounting Guidelines Manual Available

The newest version of the Accounting Guidelines Manual has been posted to NOLHGA’s Web site in the password-protected extranet, in the Publications section under “Special Reports & Documents.” The Manual deals with many accounting issues faced by life and health insurance guaranty associations, including expense allocation methodology and financial statement presentation.

This year, the Accounting Issues Committee has completely reorganized the Manual. Along with the reorganization, updates for this year include a new version of the Form 990 filed annually by guaranty associations with the IRS and a new version of the NOLHGA Proof of Claim Submission format. The PDF file of the Manual available on the NOLHGA site includes bookmarks for each item of interest.

In addition to the PDF version, the committee will be mailing to each guaranty association a printed version of the Manual. Annually thereafter, replacement pages will be mailed for insertion.

The committee hopes the guaranty associations find this version of the Accounting Guidelines Manual informative and more user-friendly than past versions. Please send comments to members of the Accounting Issues Committee (Committee Chair Lowell Miller (North Carolina) or NOLHGA staff contact Paul Peterson).

  Staff Contact - Paul Peterson

IAIR Insolvency Workshop Follows January MPC Meeting

The International Association of Insurance Receivers (IAIR) will host its annual Insolvency Workshop, titled Globalization - Technology - Reform, from January 30 through February 1, 2008, at the El Conquistador Hilton in Tucson, Ariz. The meeting begins on the day that NOLHGA's MPC meeting in Phoenix concludes.

The IAIR educational program will address the current "hot" issues relating to insurance receivership, reinsurance, and recent developments in insolvency and troubled company management and administration in the United States and abroad. It will also include a session on guaranty fund issues. The program is approved for 14 hours of CPE credit, and IAIR will be filing for CLE accreditation. The program brochure and registration information are available here.

  Staff Contact - Joni Forsythe