Executive Life Insurance Company (Calif.)
Commissioner Settles with Some Defendants in Altus Litigation
During the week of February 13, 2005, the California Insurance Commissioner entered into settlements in the lawsuit he filed against certain parties involved in the ELIC Rehabilitation Plan. The settling defendants are Aurora National Life Assurance Company and its parent company, New California Life Holdings (the "Aurora parties"), which agreed to pay $80 million to the ELIC estate, and Credit Lyonnais and certain related entities, which agreed to pay $525 million to the ELIC estate. In connection with the settlement with the Aurora parties, the Federal District Court entered an order recognizing that all claims involving the Aurora parties, including the counterclaims that the Aurora parties had filed against NOLHGA and the California Life & Health Insurance Guarantee Association, were finally dismissed. The commissioner continues to pursue claims against the remaining defendants in the case.
Articles about these settlements can be found in the "Press Room" section of NOLHGA's Web site.
Task Force Chair - Art Dummer; Staff Contact - Consumers United Insurance Company (Del.)CUIC Estate Makes Distribution
In a follow-up to the $3 million early access distribution in December 2004, on February 18, 2005, NOLHGA distributed an additional $1 million for administrative expenses to the guaranty associations affected by the CUIC insolvency. As previously reported, the total $4 million distribution was made possible by the sale of the "Parkside" real estate, which was one of the last remaining assets in the CUIC estate. After being the subject of litigation over the last few years, the property sold for $11.1 million pursuant to a court-approved bidding agreement in September 2004, and closing took place in October. The estate netted just over $6 million after the transfer tax, broker's fees, legal fees, and other closing costs. Some funds are being retained by the estate for the cost of winding up the estate's affairs.
Task Force Chair - Peggy Parker; Staff Contact -Briefing Book & Revised MPC Schedule Available
The briefing book for the upcoming MPC meeting, which will be held February 23-25, 2005, in Tampa, Fla., is available on the meeting Web page. Users will need to log in after clicking on the link to access the PDF file, which can be found in the "Meeting Resources" section. In addition, access to the book is restricted to approved user groups (see below).
The briefing book contains meeting materials, including a slightly revised schedule of events. Please note that the MPC general session will take place on both February 24 and 25. In addition, a seminar on organizational governance sponsored by the Administrators' Education Steering Committee will take place on February 24 from 2:30 p.m. to 4:30 p.m.
Due to the confidential nature of the briefing materials, only NOLHGA Board members, guaranty association administrators, members of guaranty association boards, and other association representatives who will attend the meeting as the designated voting guaranty association representative can access the briefing book. Other guaranty system representatives who need a copy of the meeting agenda or a particular insolvency status report should contact the appropriate NOLHGA staff contact.
If you have any trouble accessing the meeting Web page, please contact Dan Hicks at [email protected] or 703.787.4112. Questions concerning the MPC meeting should be directed to Sean McKenna at [email protected] or 703.787.4106.
Staff Contact - Sean McKennaInsolvency Financial Reports Posted Online
The 2004 edition of the two-volume Insolvency Financial Reports has been posted on NOLHGA's Web site. The reports are located in the "Publications--Special Reports" section of the password-protected extranet, and only guaranty association administrators can access them. The reports are available in PDF files, and users will need Adobe Acrobat Reader to view them.
The Insolvency Financial Reports, which cover all the insolvencies NOLHGA has been involved with, contain general background information, guaranty association obligations, expenses, and other financial information. The reports list this information by both state and individual insolvency. Beginning with the 2001 edition, the reports were issued only as PDF files on the NOLHGA Web site.
Should you have any problems accessing the files, please contact Paul Peterson at [email protected] or 703.787.4119.
Staff Contact - Paul Peterson