Inter-American Life (IL)

Receiver Seeks Expense Data

On February 9, the Illinois Office of the Special Deputy Receiver (OSD) sent Financial Information Questionnaires to the 48 affected guaranty associations, seeking expense information for the periods:

- April 1 to December 31, 1997;

- January 1 to December 31, 1998; and

- January 1 to December 31,1999.

The forms include inception to date expenses as of March 31, 1997, according to OSD's records, to assist GAs in reconciling their past expense reports. OSD has requested that these forms be returned by March 27.

The expense form is similar to those NOLHGA has used in other insolvencies, with one refinement. The OSD form asks that interest expense be allocated between money borrowed to fund policyholder benefits and money borrowed to fund guaranty association expenses, with only the latter to be allowed as an administrative expense claim against the estate.

Task Force Chair - William Falck;   Staff Contact - Joni Forsythe Centennial Life (KS)

Opt Out Packages

Opt Out packages for the New Era assumption of the Centennial Life "Other Block" were sent to 37 affected guaranty associations on February 2. The opt out period ends March 3. Guaranty association administrators should execute the Participation Certificate and return it to Bill Howard by March 3. The "Other" Block includes miscellaneous life, medical conversion and hospital indemnity policies that could not be cancelled.

Separately, NOLHGA distributed $13 million by check and bank wire to the 49 affected guaranty associations. These funds were premiums and guaranty association expenses through June 30, 1999.

Task Force Chair - Mark Femal;   Staff Contact - Statesman National Life (TX)

Opt Out Period Ends February 14

NOLHGA sent Opt Out packages for the Litigation Agreement with the Receiver to 31 affected guaranty associations on January 12. The opt out period on this agreement ends February 14. There is no participation certificate required for this agreement. Instead, NOLHGA will certify to the Receiver which GAs are participants.

Task Force Chair - Neil Rucksdashel;   Staff Contact -

MEMBERS' PARTICIPATION COUNCIL

February 23 - 25, 2000

SCHEDULE OF EVENTS

Hyatt Regency Westshore,Tampa, Florida
Wednesday, February 23 Time Location
NOLHGA OFFICE All Day Conference Room
THUNOR TRUST TASK FORCE 8:00 am - 11:50 am Pelican
ACCOUNTING ISSUES CMTE. 10:00 am - 11:50 am Roseate Spoonbill
NATL AFFILIATED TASK FORCE 1:00 pm - 2:50 pm Pelican
MID-CONTINENT TASK FORCE 1:00 pm - 1:50 pm Herring Gull
ADMINISTRATORS' EDUC STEERING CTE SUBGRP 3:00 pm - 3:50 pm Roseate Spoonbill
EXECUTIVE LIFE TASK FORCE 3:00 pm - 4:50 pm Herring Gull
ADMINISTRATORS' EDUC STEERING CMTE 4:00 pm - 4:50 pm Roseate Spoonbill

Thursday, February 24 Time Location

NOLHGA OFFICE All Day Conference Room
CENTENNIAL LIFE TASK FORCE 8:00 am - 9:50 am Roseate Spoonbill
FIDELITY BANKERS LIFE TASK FORCE 10:00 am - 10:50 am Pelican
YEAR 2000 CONTINGENCY PLANNING CMTE 11:00 am - 11:50 am Herring Gull
WORKING LUNCH Noon - 12:45 pm Audubon Foyer
MEMBERS' PARTICIPATION COUNCIL MTG 12:45 pm - 4:15 pm Audubon Ballroom
RECEPTION 6:00 pm - 7:00 pm White Ibis

Friday, February 25 Time Location

FULL BREAKFAST 7:00 am - 8:00 am Audubon Foyer
MEMBERS' PARTICIPATION COUNCIL MTG 8:00 am - Noon Audubon Ballroom