MPC Meets in January
The Members’ Participation Council (MPC) conducted an online meeting on January 27–28, 2021. In addition to the task force reports below, the MPC General Session featured closed-session (affected guaranty associations only) presentations by the task forces for Penn Treaty Network America/American Network Insurance Companies (Pennsylvania), Global Bankers Insurance Group (North Carolina and Michigan), Time Insurance Company (Wisconsin), and Senior Health Insurance Company of Pennsylvania (SHIP).
The General Session also included a presentation on the activities of the joint Legal Committee and Coverage/Claims Committee HMO Legal Issues Subgroup by Subgroup Chair Pamela Olsen (Minnesota and Nebraska) and Kevin Griffith (Faegre Drinker Biddle & Reath). NOLHGA President Peter Gallanis provided the President’s Report, and MPC Chair Tom Sullivan briefed attendees on MPC Executive Committee activity.
The meeting featured a meeting of the MPC Executive Committee and a presentation conducted by the Administrators Education Steering Committee and Accounting Issues Committee entitled GA Accounting Practices: The Accounting Guidelines Manual, External Audits & Electronic Processing. The presentation featured Janis Potter (Illinois), who chairs both committees, and Leah Cooper (West Virginia), Stephanie Davis (Indiana), Barry Miller (Delaware), Don Sirois (Maine), Brad Taman (North Carolina), Todd Thakar (California), and Gary Strohm (Strohm Ballweg).
Staff Contact - Sean McKenna AF&L/Senior American Insurance Companies (Pennsylvania)Task Force Chair Bart Boles (Texas) reported that the affected guaranty associations have paid approximately $5.5 million in claims since Senior American Insurance Company (SAIC) was placed in liquidation in September 2019. The task force is in discussions with the Receiver about a possible early access distribution. He also reported that the liquidation petition for AF&L, which had been stayed since July 2018, has been dismissed.
Task Force Chair - Bart Boles; Staff Contact - Joni Forsythe North Carolina Mutual Life Insurance Company (North Carolina)Task Force Chair Peggy Parker (Virginia) updated attendees on activity relating to the company, which was placed in rehabilitation in late 2018. Financial, operational, and legal issues were addressed by Task Force Legal Consultant Joel Glover (Faegre Drinker Biddle & Reath), Financial Consultant Mark Femal (Strohm Ballweg), Actuarial Consultant Eddie Mire (Rudd and Wisdom), and NOLHGA Staff Contact Joanna Akiyama.
Task Force Chair - Peggy Parker; Staff Contact - Paul Peterson Andrew Jackson Life Insurance Company (Mississippi)Final Distribution Made
In September 2020, the Liquidator’s Report of Claims and Petition for Approval of Final Distributions was filed in the Mississippi Receivership Court. The Report and Petition were approved by the court on December 9, and final distributions were paid out directly to affected associations the following week. The final distribution totaled $3,277,913.33, bringing guaranty association recoveries on Class 2 (policy level) claims up from 58% to 59.41%. The guaranty associations had previously recovered 100% of their allowed Class 1 expense claims. No further guaranty association distributions are expected from this estate, and the Receiver is working to close the estate after filing final tax returns.
Task Force Chair - Dan Elrod; Staff Contact - Joni Forsythe