Bankers Commercial Life (TX)

TPA Transition

The transition of third party administration functions from United Teacher Associates to New Era Life appears to be on track to meet the February 1 implementation date. It is anticipated that a new TPA agreement with New Era will be completed next week and mailed to guaranty associations the week of January 28. The transition plan calls for phone service to begin at New Era on January 23, with full servicing capabilities (i.e. premium collection, policy administration, claims servicing, etc.) beginning on or about February 1. Guaranty associations should be aware that the transfer of final data records and policy files in the last week of January will cause an approximate one week delay in claims servicing by New Era. However, New Era believes this backlog will be eliminated quickly once processing begins.

As a result of the expected delay due to the transition, the Task Force strongly recommends that guaranty associations fund the December claims amount due United Teacher Associates as soon as possible. This will keep potential phone calls to customer service representatives to a minimum.

Task Force Chair - William Falck;   Staff Contact - Paul Peterson National Heritage Life (DE)

NHL Trust Winding Down

The NHL Trust, which was created in conjunction with the Liquidation Plan for National Heritage, has successfully liquidated nearly all estate assets transferred to the Trust and is in the process of winding down. Significant gains were realized over the estimated market value of the assets transferred to the NHL Trust with $207,773,075.83 distributed to date to affected guaranty associations and $24,195,181.83 to uncovered policyholders. An additional distribution is expected on April 1, 2001. The Trust will wind down and terminate by April 21, 2001, pursuant to the terms of the Trust Agreement.

The remaining real estate assets, real estate mortgages and miscellaneous assets will be subject to a bulk sale. A Request for Proposals was e-mailed to numerous interested parties, including NOLHGA and Task Force representatives on Monday, January 8, 2001. If any of the 23 affected guaranty associations are interested in receiving an electronic copy of the Request for Proposals or if you are aware of potentially interested purchasers for real estate-related assets, please contact Meg Melusen at NOLHGA.

Task Force Chair - Dan Orth;   Staff Contact - National American Life (PA)

Distribution Expected

The Receiver has informed NOLHGA that he intends to make an approximate $10 million distribution in the near future. That distribution will be divided between uncovered policyholders and affected guaranty associations, with guaranty associations receiving approximately $7 million.

Task Force Chair - Tad Rhodes;   Staff Contact - Paul Peterson American Integrity Life (PA)

Distribution Expected

The Receiver has informed NOLHGA that he intends to distribute $3 million to NOLHGA in the near future. NOLHGA will forward the distribution to affected states.

Task Force Chair - John Colpean;   Staff Contact - Paul Peterson

February MPC Meeting

Registration forms and meeting information for the February 21-23 NOLHGA Members' Participation Council Meeting in San Diego, CA were faxed earlier today. Meeting information and registration is also available on line at www.nolhga.com/registration/mpcfeb01.html. Those planning to attend should make their hotel reservations as soon as possible as the deadline is January 19. To make your reservations, contact the Embassy Suites San Diego Bay directly at 619.239.2400 and ask for the NOLHGA rate ($179 single, $199 double.)

  Staff Contact - Sean McKenna

Calendar

January 23 National Heritage Life Trustees meeting, Orlando, FL

  Staff Contact - Sean McKenna