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Reservations Deadline for January 2013 MPC Extended

The deadline for making hotel reservations for the January 8-10, 2013, MPC meeting in Clearwater Beach, Florida, has been extended to Tuesday. December 18. After this date, we can no longer guarantee the special NOLHGA room rate of $184/night plus tax at the Sandpearl Resort. We encourage all attendees to make their hotel reservations and to register for the meeting as soon as possible. Hotel reservation information, online registration, and a preliminary meeting schedule are available on the meeting Web page.

If you have any trouble accessing the meeting Web page or schedule, 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)

Defeasance Calculation Requests Due

In November 2012, NOLHGA sent a notice to the ELIC participating guaranty associations (PGAs) notifying them that any associations contemplating the possibility of defeasance in 2013 must make a written request to Aurora for a defeasance calculation before year-end 2012. 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.

The ELIC Task Force encourages all PGAs that have not already defeased to submit a defeasance calculation request before year-end to preserve their ability to consider making a defeasance payment in 2013. If anyone needs a copy of the NOLHGA memo or the sample request, please contact Meg Melusen ([email protected]).

Task Force Chair - Art Dummer; Staff Contact - Bill O'Sullivan

Assessment and Capacity Reports Posted on NOLHGA's Web Site

Updated versions of NOLHGA's annual Assessment and Capacity Reports have been posted on the Facts & Figures--Assessment Data section of the NOLHGA Web site.

NOLHGA annually compiles information from guaranty associations on assessment activity--whether assessed, called (billed), or refunded. This information is used to generate various reports reflecting capacity or assessment activity (amounts assessed, called, or refunded) by insolvency, state, year, or account. Please note that all amounts are in the thousands.

The reports cover the period from 1988 to 2011 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] or 703.787.4119.

Staff Contact - Paul Peterson

2012 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. 35R - Revised Guaranty Fund and Other Assessments (finalized March 2000, revised October 2010) 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.

In addition, there is a special attachment dealing with the Lincoln Memorial cost estimates that provides some general background and a range for the cost estimates related to that case.

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 should be directed to the appropriate guaranty association.

Please note that some of the financial schedules will print in very small text 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.