Diamond Benefits Life Insurance Company (Ariz.)/Life Assurance Company of Pennsylvania (Pa.)
Final Subrogation Distribution Received
NOLHGA has received from the Diamond Benefits receiver the final estate distribution related to the guaranty association subrogation claims. The amount received was $3,042,097, and the funds should be distributed to the guaranty associations in early 2008. The associations should contact Gus Estrada if they do not receive their funds in the near future.
With this distribution, all matters for these insolvencies should now be closed.
Staff Contact - Paul Peterson Life & Health Insurance Company of America (Pa.)Escrow Account Reconciliation Funds Distributed to GAs
NOLHGA has distributed funds to applicable guaranty associations for the third quarter 2007 escrow account reconciliation. This reconciliation settles all premium collections and claim funding transactions along with reinsurance activities. It also redistributes the early access distributions received based on September 30, 2007, amounts. The payment of these amounts will essentially distribute all funds held in the NOLHGA escrow account as of September 30, 2007, except for $244,364 consisting of interest, bank fees, etc.
Guaranty associations should contact Gus Estrada if they do not receive their funds in the near future.
Task Force Chair - Linda Becker; Staff Contact - States General Life Insurance Company (Tex.)True-up Reimbursements Sent to GAs
During the week of December 16, 2007, true-up reimbursement payments were sent to affected associations. Although the net outcome of the post-closing assumption true-up with New Era resulted in a net reimbursement of $28,023.62, individual guaranty association results varied by state depending upon the business held in each state. Some associations have made additional true-up payments, and others will be receiving additional reimbursements. In addition, NOLHGA is distributing approximately $304,000 in premium refunds, which have been allocated among affected guaranty associations on a policy-by-policy basis. Amounts owed by any individual association based on the assumption true-up were reduced by the amount of premiums they were owed.
After offset for premium refunds, 6 states had balances due for the true-up and another 14 states were entitled to reimbursements. Amounts due to and from each affected association were outlined in a November 19 memorandum from task force counsel. All guaranty association true-up payments have since been received, and reimbursements were sent to the remaining associations this week.
Please call Joni Forsythe at 703.787.4103 if you have any questions.
Task Force Chair - Tad Rhodes; Staff Contact - Joni Forsythe