Bankers Commercial Life Insurance Company (Tex.) & Statesman National Life Insurance Company (Tex.)
Deadline for Settlement Agreement Participation Certificates Passes
Participation certificates for settlement agreements entered into with the receiver of BCL and Statesman were due February 13. As a reminder, these agreements resolve disputes regarding the offsetting of guaranty association administrative expense claims with post-liquidation premiums. Guaranty associations affected by both insolvencies must complete a separate participation certificate for each estate. Please fax copies of the completed certificates to Paul Peterson at 703.481.5209 as soon as possible.
Task Force Chairs - William Falck (BCL) & Neil Rucksdashel (Statesman); Staff Contact - Paul Peterson Executive Life Insurance Company (Calif.)Aurora Twelfth Installment Billing Issued
On January 30, 2003, Swiss Re issued Aurora's Twelfth Installment Billing for distribution to the participating guaranty associations. During its initial review of the bill, Navigant Consulting noted some exceptions, which were reported to Aurora. Aurora corrected these exceptions on a revised Twelfth Installment Billing, which NOLHGA will distribute shortly. Navigant will then conduct a more-thorough review and provide the participating guaranty associations with a detailed report of its findings, along with billing instructions, approximately 30 days prior to the invoice due date of April 30, 2003.
Task Force Chair - Art Dummer; Staff Contact - Statesman National Life Insurance Company (Tex.)Third Dividend Payment Expected
On February 10, 2003, the special deputy receiver filed an application for authority to make a third dividend payment to guaranty associations. The amount to be disbursed is $500,000. As was the case with the second distribution, this payment will be made only to the Arkansas, Louisiana, Oklahoma, and Texas guaranty associations, and these associations will need to execute a dividend payment agreement and return it to the special deputy receiver. Copies of the agreement were mailed to the affected associations; any affected association that does not receive its copy in the near future should contact Joel Glover or Paul Peterson (703.787.4119; [email protected]).
As part of winding down the insolvency, the final reconciliation of the assumption agreement with American Capitol needs to be completed. It is anticipated that the final assumption agreement schedules will be sent to the guaranty associations in the next week.
Task Force Chair - Neil Rucksdashel; Staff Contact -Conflicts Questionnaires & Antitrust Certifications Due in One Week
NOLHGA's Conflicts Policy and questionnaire were mailed on January 21 to all NOLHGA personnel and representatives, including NOLHGA Board members, committee and task force members, and consultants. NOLHGA's Antitrust Policy and certification form were also sent to these groups and to all NOLHGA members. Please note that all NOLHGA members are required to complete the Antitrust Certification, regardless of whether they served on any Board, MPC, or insolvency committees or task forces during the course of the year.
Both the conflicts questionnaire and the antitrust certification form are required to be completed on an annual basis and are due by February 21. If you have not yet completed and returned these items, please do so as soon as possible. We would be glad to provide additional forms to anyone who needs them (please call Aimee Frye at 703.787.4115 to request additional forms).
The completed conflicts questionnaire and antitrust certification should be sent to Aimee Frye by fax (703.481.5209) or mail (13873 Park Center Road, Suite 329, Herndon, VA 20171). These forms should take only a few minutes to complete, and your timely response is very important. Your assistance in this matter is greatly appreciated.
Staff Contact -2002 Guaranty Association Assessment Information Due May 1
The 2002 version of the annual request for assessment information was sent to all guaranty associations via e-mail on February 13. Responses are due no later than May 1.
As in past years, each state guaranty association is to report assessments made, assessments called, and refund information by insolvency and by account. The message sent to the associations contained two files: (1) a PDF document explaining details of the request and (2) an Excel spreadsheet that lists all known insolvencies since 1988. Each association simply enters its state's assessment information for a particular insolvency on the spreadsheet.
Responses should be returned to Karen Early via e-mail ([email protected]) or fax (703.481.5209). If no assessment activity occurred during 2002, please let Karen know. If you encounter any difficulties with either file, please contact Paul Peterson (703.787.4119).
Staff Contact - Paul Peterson