Centennial Life (KS)
LTD Claims Outsourced
The task force and the receiver have negotiated an agreement with Disability Management Alternatives (DMA) under which the receiver will outsource the management of all LTD claims. The agreement is effective Feb. 1. Centennial will produce claims payable reports and issue checks for February, and DMA will produce claims payable reports and issue checks beginning in March. DMA will use its best efforts to make each LTD payment on a day certain each month. In addition, DMA will implement the claims management actions recommended by Monarch Life in their audit of the LTD open claims. Participating guaranty associations will receive additional information from DMA, the receiver and the task force regarding this changeover.
Separately, Claims Systems Auditors reported in January that their most recent four reviews of Centennial Health Block claim batches showed a financial accuracy rate averaging over 99 percent. The lowest financial accuracy rate of the four audits was 98.3 percent.
Task Force Chair - Mark Femal; Staff Contact - The Universe Life (ID)DHAS To Assume Long-Term Care Policy Servicing
A service agreement has been negotiated with Duncanson & Holt Administrative Services (DHAS) under which DHAS will service the long term care policies of Universe Life for participating guaranty associations. DHAS had previously performed the claims administration for Universe Life. Affected guaranty associations who wish to participate in the service agreement are requested to return a signed participation certificate no later than February 16.
Staff Contact -Year 2000 Contingency Planning Committee
As a reminder, the Year 2000 Insolvency Contingency Planning Committee meeting is scheduled for Friday, February 19, from 8 - 10:50 am, during the Tucson MPC Meeting. The meeting is the only event scheduled for Friday to allow all guaranty association representatives the opportunity to provide input into the committee's work. The committee will be continuing its efforts to address Year 2000 issues and comments from attendees are encouraged.
Oral Argument Heard in Gersenson Appeal
On Thursday, February 4, the Superior Court of the Commonwealth of Pennsylvania heard oral argument in the appeal of Gersenson v. Pennsylvania Life & Health Insurance Guaranty Association. The case involves the plaintiffs' contention that the California court lacked jurisdiction to approve a release of the participating guaranty associations in accordance with the ELIC Enhancement Agreement and Plan and that the Pennsylvania Association failed to satisfy its statutory obligations by failing to maintain the monetary value of the original contracts. At trial last June, the Philadelphia County Court of Common Pleas agreed with the plaintiffs and entered a monetary judgment against the Pennsylvania Association. (See Weekly Wire 9-18-98).
The Pennsylvania Association appealed the decision, maintaining that the Pennsylvania courts must give full faith and credit to the California court's judgment approving the ELIC Plan. In October, NOLHGA filed a supporting brief as amicus curiae. (See Weekly Wire 10-9-98). Having heard oral argument this week, Pennsylvania's Superior Court is expected to issue a decision within six months.
Staff Contact -ETC.
Area Code Changes
The new area code for the California Guaranty Association is 323.
The new area code for the Minnesota Guaranty Association is 651.
CALENDAR/CONFERENCE CALLS
Feb.11 Claims Valuation Subgroup Meeting, Orlando, FL
Feb.11 Fidelity Mutual Life Teleconference, 11 am ET
Feb. 17-19 NOLHGA MPC Meeting, Tucson, AZ
Feb. 17 Legal Seminar Planning Committee Meeting, Tucson, AZ
Feb. 25-26 NOLHGA Legal Committee, Tampa, FL
Feb. 26 GIC Litigation Working Group CANCELLED(Will be replaced with teleconference. Contact Angela Franklin 703.787.4105 for more information.)