Kentucky Central Life (KY)
Supporting Brief In Mid-Central Litigation Filed
On January 26, 2001, NOLHGA and the Illinois and Texas guaranty associations filed a brief in support of the Liquidator's pending motion for summary judgment on the issue of substantive consolidation in the Mid-Central litigation.
As detailed in last week's Weekly Wire, this case was initiated on behalf of certain shareholders seeking to recover approximately $13 million from the assets of Mid Central Investment Company, Inc., a KCL subsidiary. The Liquidator, in turn, is seeking to have the court consolidate the assets of Mid-Central into the KCL estate for purposes of the liquidation.
NOLHGA, the Illinois and Texas guaranty associations and the Kentucky Public Employees Retirement Fund have intervened as parties in these proceedings. The matter has been proceeding through discovery, and the Liquidator filed a motion for summary judgment on January 5, 2001. Thereafter, on January 26th, NOLHGA and the Illinois and Texas associations joined in filing a brief in support of the Liquidator's summary judgment motion. Hearing has not yet been scheduled.
Task Force Chair - John Colpean; Staff Contact - Joni Forsythe Executive Life (CA)Court Issues Draft Ruling in Altus Case
On January 31st, Federal District Court Judge Howard Matz issued a draft order that would deny most of the defendants' motions to dismiss, with the exception of Aurora's motion to dismiss the Commissioner's restitution claims against Aurora. The case involves the California Insurance Commissioner's claims that the defendants engaged in a fraudulent scheme in connection with the ELIC rehabilitation proceedings. The Commissioner's Third Amended Complaint was on February 14th of last year, and certain defendants' motions to dismiss have been pending since August. A hearing is scheduled for February 20th at 10:00 a.m. for the parties to discuss the draft order. The parties continue with discovery. No trial date has been set at this time.
Task Force Chair - Art Dummer; Staff Contact -Texas Association Website
The Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association has unveiled its new website. The address is www.txlifega.org.
Staff Contact - Sean McKennaCalendar
February 7
NOLHGA Compensation Committee meeting, Tysons Corner, VA
February 8
NOLHGA Board of Directors meeting, Tysons Corner, VA