January 8, 1999 Centennial Life (KS)

Claims Backlog Decreasing

The Centennial Health Block claims backlog decreased by 13,000 between December 7 and December 28. This brings the 1998 year-end inventory to 57,000, a reduction of 40,000 from the peak in August. NOLHGA faxed a copy of the inventory report to guaranty associations January 8.

Beginning in October, the receiver has paid claims totaling $4 million to insureds under the Aegon Health Block. Funds for these payments came from the Aegon trust account.

Task Force Chair - Mark Femal;   Staff Contact - Summit National Life (PA)

Early Access Payment Received

NOLHGA received an early access payment of $36 million from the estate on January 5. Checks and allocation schedules have been sent to affected guaranty associations via overnight delivery for receipt no later than January 8. The distribution includes reimbursement of most administrative expenses incurred by guaranty associations and NOLHGA. This payment is the third distribution since the insolvency occurred in 1994, bringing total recoveries to-date to $75 million, or approximately 65% of all costs incurred by guaranty associations. Please contact Hazel Manclark at NOLHGA at 703.787.4110 if you have not yet received your package.

Task Force Chair - Tad Rhodes; Project Manager - Fred Buck;   Staff Contact - Paul Peterson

MPC Executive Committee Meeting

The MPC Executive Committee has scheduled a meeting in conjunction with the upcoming Members' Participation Council meeting in Tucson, AZ. The meeting is currently scheduled for Wednesday, February 17 at 8 a.m. The agenda includes a discussion of the MPC Guidelines (Protocols). All interested guaranty associations and their representatives are invited to attend the meeting. Questions about the meeting can be directed to MPC Chair Peggy Parker at 804.282.2240 or Dana Carroll, NOLHGA staff, at 703.787.4118.

ETC.

Missouri Amicus Motion Available

NOLHGA's amicus motion for leave to file suggestions and suggestions in support of transfer filed in the Quackenbush v. Missouri Life and Health Insurance Guaranty Association are now available on NOLHGANet's litigation database at Mo0007 and Mo0008.

CALENDAR/CONFERENCE CALLS

Jan. 13 Centennial Working Group Teleconference, 10 a.m. ET

Jan. 18 Tucson MPC Meeting Registration and Hotel Reservation Deadline

Jan. 19 Audit Committee Teleconference, 1:30 p.m. ET

Jan. 22 Legal Committee Claims Valuation Subgroup, Dallas, TX 10-3, CT