MPC Meets in Newport Beach
The Members’ Participation Council (MPC) met in Newport Beach, California, on January 24–25, 2018. The Lincoln Memorial/Memorial Service Life Insurance Companies (Texas) Litigation Subgroup held a meeting, and the Penn Treaty Network America/American Network Insurance Companies (Pennsylvania) Task Force held a closed-session presentation. The Administrators Education Steering Committee, Accounting Issues Committee, and MPC Executive Committee also met.
The meeting also featured an Administrators Education Steering Committee presentation entitled Update on Changes to the NAIC GA Model Act conducted by moderator Jack Falkenbach (Delaware), Bruce Ferguson (ACLI), Nick Thompson (UnitedHealth Group), Paul Peterson (NOLHGA), and Bill O’Sullivan (NOLHGA). A Lessons Learned Workshop moderated by Pamela Olsen (MPC Chair) featured Art Dummer (Utah), Jack Falkenbach (Delaware), and Mike Marchman (Georgia).
In addition to the task force report below, MPC Chair Pamela Olsen asked for a moment of silence in honor of Dick Horne, Administrator and Legal Counsel for the Arkansas guaranty association, who passed away on January 21, 2018. In addition, NOLHGA President Peter Gallanis provided the President’s Report, and Ms. Olsen briefed attendees on MPC Executive Committee activity.
Staff Contact - Sean McKenna Lincoln Memorial/Memorial Service Life Insurance Companies (Texas)Task Force Chair Tad Rhodes (Colorado and Oklahoma) reviewed the assumption agreement with Liberty Bankers Life and Capitol Life Insurance Companies. The assumption closed on November 1, 2017, and a true-up is scheduled for early 2018. There are two remaining blocks of business that are eligible for assumption at a later date after further data clean-up efforts are completed, and the task force hopes to move them in late 2018. The presentation concluded with a closed session for affected guaranty associations only.
Task Force Chair - Tad Rhodes; Staff Contact - Paul Peterson Reliance Insurance Company (Pennsylvania)Additional Early Access Funds to Be Distributed in March
On January 17, 2018, the Commonwealth Court of Pennsylvania entered an order granting the liquidator’s most recent application for approval to make additional early access disbursements to the life and health guaranty associations. This distribution will total approximately $5.2 million and will increase the associations’ policy-level claim recovery from 65% to 80% of approved claims. (Copies of the Application and Order have been sent to all affected guaranty associations.) The liquidator expects to send checks to the affected associations in March. It is not yet clear whether, or to what extent, any additional funds may be available for distribution to the life and health guaranty associations after this distribution is paid.
Task Force Chair - Tad Rhodes; Staff Contact - Joni Forsythe