February 1, 2008

MPC Meets in Phoenix

The Members' Participation Council (MPC) met in Phoenix on January 29 and 30, 2008. The following are summaries of task force insolvency reports presented during the meeting:

  Staff Contact - Sean McKenna American Chambers Life Insurance Company (Ohio)

Task Force Chair Charles Gullickson (South Dakota) reported that the liquidator would be mailing premium refund checks totaling $3.2 million to affected guaranty associations in the next week or two. Task force representatives will also pursue discussions with the liquidator about early access distributions to the affected guaranty associations.

Task Force Chair - Charles Gullickson;   Staff Contact - Benicorp Insurance Company (Indiana)

Task Force Chair Frank Gartland (Ohio) reviewed the estate assets and the disposition of the policies. Project Manager Mark Femal (Strohm Ballweg) outlined the status of the medical claims being handled by the guaranty associations, which are estimated to be approximately $43 million (of which $33 million has been funded), and the privacy policies being employed by the task force and Benicorp. The task force is collecting guaranty association expense information and is also discussing an early access agreement with the liquidator.

Task Force Chair - Frank Gartland;   Staff Contact - Paul Peterson Diamond Benefits Life Insurance Company (Arizona)/Life Assurance Company of Pennsylvania (Pennsylvania)

Litigation Review Task Force Chair Tad Rhodes (Oklahoma) reported that the estate made its final distribution and closed in December 2007.

Litigation Review Task Force Chair - Tad Rhodes;   Staff Contact - Paul Peterson Executive Life Insurance Company (California)

The Executive Life MPC made a closed-session presentation.

Task Force Chair - Art Dummer;   Staff Contact - Bill O'Sullivan Executive Life Insurance Company of New York (New York)

The ELNY MPC made two closed-session presentations.

Task Force Chair - Jack Falkenbach;   Staff Contact - Kentucky Central Life Insurance Company (Kentucky)

Task Force Chair John Colpean (Michigan) provided the status report for the Kentucky Central Task Force, highlighting two December 2007 distributions to the affected guaranty associations, one for expenses and the other for future claims on a small block of industrial life policies that remained on the books of KCL. The KCL estate closed in December, and the task force's remaining projects include developing procedures for handling periodic claims arising under the industrial life block and preparing a lessons learned report.

Task Force Chair - John Colpean;   Staff Contact - Joni Forsythe States General Life Insurance Company (Texas)

Task Force Chair Tad Rhodes (Oklahoma) provided a status update concerning the SGLIC estate, including an update of guaranty association claims, coordination of a final omnibus proof of claim, and association recoveries to date. Although there is ongoing asset recovery litigation, the receiver remains optimistic that the estate will close in 2008.

Task Force Chair - Tad Rhodes;   Staff Contact - Joni Forsythe Universe Life Insurance Company (Idaho)

Task Force Chair Tad Rhodes (Oklahoma) outlined the status of the trusts' litigation against the estate and reported on a proposed settlement agreement that has been presented to the trusts' counsel. The Universe Life MPC unanimously passed a resolution authorizing the task force to proceed with settlement discussions and to enter into an agreement similar to the one presented to the MPC.

Task Force Chair - Tad Rhodes;   Staff Contact - Paul Peterson

MPC Meeting Features Presentations on Medicare Advantage, NAIC & More

The MPC general session also featured a presentation by the Coverage/Claims Committee on issues relating to Medicare Advantage insurance as well as presentations on NAIC activities touching on guaranty system issues, NOLHGA's 16th Annual Legal Seminar, and the work of NOLHGA's Life and Annuity Privacy Working Group. NOLHGA President Peter Gallanis reported on recent developments concerning financial services modernization on Capitol Hill, and MPC Chair Bart Boles (Texas) reported on the activities of the MPC Executive Committee. In addition, the Administrators Education Steering Committee conducted a technology seminar led by Dan Hicks and Kenny Bullock (NOLHGA staff).

  Staff Contact - Sean McKenna