Bankers Commercial Life Insurance Company (Tex.)

New Era Funds Distributed to GAs

Funds were sent to affected guaranty associations the week of January 6 representing premium collections made by New Era on behalf of the guaranty associations for the period September 1 through November 8. In addition, NOLHGA received a small amount of interest earned on the premium account from New Era. With this payment, all funds owed to guaranty associations by New Era in regard to the administration of the BCL policies, other than amounts related to outstanding claims checks funded by the guaranty associations, have been received. Guaranty associations should contact Gus Estrada (703.787.4131 or [email protected]) if they do not receive their funds by next week.

Task Force Chair - William Falck;   Staff Contact - Paul Peterson First National Life Insurance Company (Ala.)

Final Distribution Received

The December 20, 2002, issue of the NOLHGA Wire reported that the FNLIC receivership court had entered an order on December 17 granting the receiver's Petition for Approval of Final Settlement of the FNLIC Receivership and Discharge of the Receiver. That order provided, in part, for a final distribution on the guaranty association expense claims in the amount of $21,845.08, bringing total distributions to 100 percent of the guaranty associations' $1,978,001.81 policy claims and 83 percent ($373,541.50) of their $472,837.34 expense claims.

The final distribution check was received by NOLHGA on January 3, 2003, and will be allocated on a pro-rata basis among the affected states based on expenses reported by each association in the proof of claim. An allocation schedule is available upon request. Checks should be issued to the individual affected states on or before January 10.

Task Force Chair - Mike Marchman;   Staff Contact - Joni Forsythe Guaranty Reassurance Corporation/Guarantee Security Life Insurance Company (Fla.)

GRC Dissolved in 2002

In accordance with the Plan of Dissolution approved by its shareholders on October 30, 2002, Guaranty Reassurance Corporation (GRC) has been dissolved effective December 31, 2002. Its remaining assets and liabilities have been transferred to the GRC Liquidating Trust, and participating guaranty associations (PGAs) will be receiving distributions from that entity in the future. According to GRC, the cost of any stock or paid-in capital is considered to have been covered by distributions made by GRC prior to its dissolution, and PGAs therefore should write down to zero in the 2002 accounting year any asset related to GRC that they have been carrying on their books. If PGAs have any questions on this matter, please contact Bill O'Sullivan at 703.787.4104 or [email protected].

Task Force Chair - Frank Gartland;   Staff Contact - Bill O'Sullivan

MPC Meeting Schedule Posted

A preliminary schedule for committee and task force meetings and the general session for the next MPC meeting, which will be held February 17-19 at the Astor Crowne Plaza - French Quarter in New Orleans, La., has been posted on the meeting Web page. The schedule, which is in PDF format, can be found in the "Meeting Information" section.

The MPC meeting Web page also contains general meeting information as well as contact information for the Astor Crowne Plaza (the cut-off date for hotel reservations is January 27, and special information about making reservations is included on the Web page) and a page offering on-line meeting registration. Status reports and other meeting materials should be available the first week of February, and attendees will be notified when new information is posted on the meeting Web page.

If you have any trouble accessing the MPC meeting Web page, please contact Bryan Owen at 703.787.4112 or [email protected]. If you have any questions about the meeting, contact Karen Early at 703.787.4101 or [email protected].

  Staff Contact -