Bankers Commercial Life (TX)
New Era Transition
NOLHGA has received approximately $7.3 million from United Teacher Associates ("UTA"), representing premium collections through January 2001. We anticipate disbursing these funds to affected guaranty associations during the week of February 11.
The transition of administrative services from United Teacher Associates to New Era Life has been completed. New Era is now processing all claim payments for both the medicare and non-medicare blocks of business along with application of premium receipts and other policy administration functions. Guaranty associations should note that weekly claims reporting has been established as part of the services provided by New Era. This is a change from the previous monthly funding process and was established improve service to policyholders and to reduce calls. In addition, we anticipate processing to begin on the non-medicare claims inventory within the next one-to-two weeks.
As a reminder, the third party administration agreement with New Era was mailed to guaranty associations with a final opt-out deadline date of February 15, 2001.
Guaranty associations should contact Paul Peterson at NOLHGA should they have any questions regarding the above items.
Task Force Chair - William Falck; Staff Contact - Paul Peterson National Heritage Life (DE)Asset Recovery Continues
Asset recovery efforts by the receiver of National Heritage Life Insurance Company and Delaware Insurance Commissioner Donna Lee H. Williams, continue to meet with success through litigation efforts. On December 18, 2000, a federal judge in New York issued an order by which the NHL Receiver is entitled to recover more than $9 million from the shareholders of a realty company pursuant to a mortgage that had been posted as collateral by the shareholders on a $4.3 million loan. (Jeffrey B. Sklaroff v. Abraham Rosenberg, et al., No. 98Civ.0487, S.D.N.Y.). Upon the Commissioner's Motion, Jeffrey B. Sklaroff was appointed Temporary Receiver with respect to certain NHL assets and became authorized to take possession of the mortgage in question. At the same time, a criminal investigation of several of the individuals and entities involved in the failure of NHL was undertaken by federal authorities with numerous indictments and convictions resulting.
In the Rosenberg matter, Federal District Court Judge Barrington D. Parker, Jr. specifically found that a purported Satisfaction of Mortgage executed among various individuals and entities involved in the failure of NHL was made for less than fair consideration and therefore constituted a fraudulent conveyance. As a result, the Court awarded the Receiver the amount due and owed NHL, plus attorneys' fees and interest.
The NHL Receiver continues to pursue numerous civil actions against individuals and wrongdoers involved in the failure of NHL in various jurisdictions.
Task Force Chair - Dan Orth; Staff Contact -MPC Briefing Materials Accessible Online
All materials for the upcoming NOLHGA MPC Meeting, February 21-23 in San Diego, California, will be available for download from NOLHGA's website by Wednesday, February 14. To access the materials, go to www.nolhga.com, click on confidential access, scroll down to member information and click on MPC Status Reports. At that point you will be able to access the reports. THE REPORTS WILL NOT BE MAILED. To receive a copy by mail, or if you need assistance accessing the reports, please contact Pete Marigliano at NOLHGA at 703.787.4106.
Staff Contact - Sean McKenna