American Chambers Life (OH)

Production and Quality Measures Exceeded

For the four-week period ended December 6, Antares Management Solutions reported that they had processed over 53,000 claims in batches 12 and 13, compared to a goal of 45,000. In addition, Antares reported that claims processing accuracy exceeded the target in both Downers Grove and Cleveland.

At the Cleveland facility, 212 claims were audited and accuracy was found to be 94.9 percent, above the 94 percent target. At the Downers Grove facility 100 claims were audited and were found to be 99.8 percent accurate, above the 97 percent target rate.

Anne Hancock will be auditing, on behalf of the guaranty associations, these accuracy rates during the first week of January. Hancock will return to the Downers Grove office on Wednesday January 3, 2001. Because of the reduction in the claims backlog, the TPA/Claims Subgroup has approved Anne to work reduced hours, in Downers Grove, during the first quarter of 2001.

Batch #13, which was released to most of the GAs on Dec. 21st, was the largest claim batch to date. It included over 20,000 paid claims in the amount of $5,871,332. Post-liquidation processed batches now total $32,600,000.

Task Force Chair -Chuck Gullickson;   Staff Contact - Centennial Life (KS)

Court Approves Assumption Transaction

The District Court of Shawnee County, Kansas on December 15 approved the assumption reinsurance agreement among the Liquidator, NOLHGA, the Participating Guaranty Associations and Hartford Life and Accident Insurance Company dated November 20, 2000. Closing is now expected to occur in January 2001.

As of December 21, all 42 affected guaranty associations had elected to become Participating Associations in the Agreement.

Guaranty associations will need to fund the January 2001 payment using the current procedures. Because certain state insurance departments must approve the transaction before closing, Hartford will not be able to make the transition until the Feb 2001 payment. Hartford will coordinate with the Liquidator for 2001 tax reporting to the claimants.

Task Force Chair -- Mark Femal;   Staff Contact - Executive Life (CA

Request for Defeasance Computation

As in prior years, any participating guaranty association (PGA) which is contemplating the possibility of defeasance in 2001 must make a request for a defeasance computation in writing to Aurora before year-end 2000. 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, 2001) to decide whether or not to defease. NOLHGA distributed a notice on this subject to the PGAs this week.

Task Force Chair -- Art Dummer;   Staff Contact - DBL/LACOP (AZ)

Interest Payments Mailed

This week checks for the 2000 interest payment on the promissory note from Security Benefit Life have been mailed to guaranty associations. Included with the checks is a breakdown by state showing the allocation of this and prior years' interest payments.

  Staff Contact - Paul Peterson

Insolvency Financial Reports Mailed

The two-volume Insolvency Financial Reports will be mailed to guaranty associations in early January. Volume I contains information by insolvency. Volume II contains summary insolvency information sorted by state. Please note, the distribution for these reports is limited to guaranty association administrators only.

  Staff Contact - Paul Peterson

ETC.

NOLHGA Holiday Schedule

In observance of the Holidays, NOLHGA will be closed on Monday December 25 and Tuesday, December 26.

NCIGF Legal Seminar

The National Conference of Insurance Guaranty Funds will be holding its 2001 Legal Seminar August 23-24 at the Hyatt Regency Fishermans Wharf in San Francisco. The seminar will provide a forum for presentations on critical legal issues and challenges currently facing property and casualty guaranty funds. Please contact Kelly Barr at NICIGF at 317.464.8187 for registration materials or more information.