American Chambers Life (OH)
MPC Report
Meeting in a roundtable format, Mark Femal reported on the status of claims administration. According to Femal, claims processed thus far exceed 240,000 and total GA funding to date amounts to approximately $48 million. In addition, Antares, the American Chambers TPA, and Medical Mutual of Ohio, Antares' parent, have markedly improved their claims processing efforts since the MPC meeting in November. Femal also apprised attendees that all claims processing will be moved from Downers Grove to Westlake, OH, on or prior to March 31. Task Force Chair Chuck Gullickson told attendees that affected states should be prepared to assume a few life policies with average face values of about $5,000 (no more than three in all states except TX and FL). The Task Force also voted to recommend that affected states approve an early access agreement form to be used when distributions are eventually made.
Task Force Chair - Chuck Gullickson; Staff Contact - Bankers Commercial Life (TX)MPC Report
The Task Force met in a roundtable format. Marc Siegel of Arthur Andersen reported on the status of claim processing. Siegel noted that the transition from United Teacher Associates to New Era had gone smoothly, the backlog of medicare supplement claims has almost been eliminated, and that claims are being processed within 10 days of receipt. Siegel noted that GAs would receive the second funding report for all claims processed by New Era from February 13-16 in the next several days. These claims amounted to $83,000. Siegel reported that the Task Force was also working to compile information on policies that were approaching GA limits and that GAs will be notified if any policies are over 75 percent of limits. Siegel also noted that no affected GAs had opted-out of the New Era TPA agreement. Paul Peterson told attendees that preparations for filing of requests for substantial rate increases on the medicare supplement policies had begun. He also noted that New Era will begin processing approximately 2,500 post March claims and that processing should be completed by the end of April. Pre-March 1 claims are anticipated to be shipped during the week of February 25.
Task Force Chair - William Falck; Staff Contact - Paul Peterson Centennial Life (OK)MPC Report
Task Force Chair Mark Femal reported that the closing of the assumption of the LTD block by Hartford is expected by the end of March. Approval by certain key insurance departments is the only stumbling block to closing. Femal also noted that he expects the Receiver to make a distribution in the 2nd quarter of 2001 that would repay 100 percent of administrative level claims and about 85 percent of policyholder level claims currently reported through June 30, 2000. Updated financial data from GAs will be requested in the next few weeks. Charlie Richardson, Task Force Counsel, gave a brief overview of the remaining litigation, including a case against former Centennial management and its reinsurance broker, and against its auditor.
Task Force Chair - Mark Femal; Staff Contact - Fidelity Bankers Life (VA)MPC Report
Task Force Chair John Colpean reported that all participating GAs had settled with the Receiver, and that the full $11.5 million settlement was delivered on November 22. That money was combined with funds from the FBL Trust and sent to policyholders in early December. Dick Klipstein told attendees that the basis for allocating expenses would be changed from Schedule T premium to reserves and would be reflected in the 4th quarter assessment. A full description of the change will be included with the billing. Kevin Griffith reported on a case filed by Shearson Lehman Brothers seeking $116 million from the FBL trust, on the basis that claims it paid to settle litigation relating to its involvement in FBL should be treated as administrative level claims.
Task Force Chair - John Colpean; Staff Contact - Kentucky Central Life (KY)MPC Report
Task Force Chair John Colpean reported that the Task Force was in the process of updating administrative level claims. Colpean urged affected states to return the claim surveys mailed to them from NOLHGA in January. Kevin Griffith provided a report on litigation matters and noted that NOLHGA had intervened in supporting a motion by the Liquidator to consolidate Mid-Central and its assets into the KCL estate. Griffith also reported that the Liquidator received partial summary judgment on a $15 million fraudulent transfer/conversion against the Bank of Louisville. A $270 million malpractice case is also pending against KCL's former auditor.
Task Force Chair - John Colpean; Staff Contact - Joni Forsythe National Heritage Life (DE)MPC Report
Task Force Chair Dan Orth informed attendees that the NHL trust is in a "wind down" phase. The Trust is attempting to sell remaining assets in bulk. Any assets remaining after the Trust closes will be returned to the estate. Task Force Counsel Frank O'Loughlin brought attendees up to date on the status of NHL-related litigation. A court decision is anticipated soon on litigation related to ownership of approximately $30 million in New York City co-ops. A civil RICO suit against various parties that allegedly contributed to the downfall of NHL is set for the upcoming spring. O'Loughlin also noted that extradition efforts against Shalom Weiss continue. Authorities are also attempting to trace Weiss's assets, which are believed to be substantial.
Task Force Chair -Dan Orth; Staff Contact -