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 2010 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 Peterson2011 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.
Staff Contact - Paul Peterson Executive Life Insurance Company (California)Reminder: Defeasance Calculation Requests Are Due
In November, NOLHGA sent a notice to the ELIC participating guaranty associations (PGAs) informing them that any associations contemplating the possibility of defeasance in 2012 must make a written request to Aurora for a defeasance calculation before year-end 2011. 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.
For any state that has not already submitted the defeasance calculation request, the ELIC Task Force encourages all PGAs to do so before year-end to preserve their ability to consider making a defeasance payment in 2012. If anyone needs a copy of the NOLHGA memo or the sample request, please contact Meg Melusen.
Finally, the ELIC Task Force is planning to distribute updated information to assist the PGAs in deciding whether to defease their obligations in 2012 and also will be making a presentation on this topic at the January 2012 MPC.
Task Force Chair - Art Dummer; Staff Contact - Bill O'SullivanHappy Holidays!
The NOLHGA staff wishes all our readers a happy and healthy holiday season. Thank you for all your support in 2011--we look forward to working with you all in 2012!
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