Centennial Life (KS)
Distribution Authorized
The Shawnee County District Court on January 10 approved the Liquidator's petition to distribute to NOLHGA, for the benefit of affected guaranty associations, $7.7 million. The amounts authorized for distribution (in millions) are:
1. Guaranty Association direct administrative expenses $2.4
2. Task Force and NOLHGA direct and allocated expenses $1.4
3. Reimbursement for advanced Receiver TPA expenses $2.0
4. Centennial unearned premium at May 27, 1998 $1.9 Total $7.7
In addition, the Receiver distributed to NOLHGA for the benefit of participating guaranty associations the following amounts (in millions) from the Participating Guaranty Association Trust Account:
June 30, 1999 balance of premiums received after liquidation $9.0
Less: Drug card charges paid to June 30, 1999 (1.7)
Less: Receiver TPA expenses (included in 3. above) (2.0)
Total transfer from PGA trust account $5.3
NOLHGA will distribute these funds to affected guaranty associations the next several weeks.
Task Force Chair - Mark Femal; Staff Contact - Kentucky Central Life (KY)Distribution Summary
On June 2, 1999, NOLHGA received a distribution of approximately $41 million from the Kentucky Central estate, which completed the repayment of the participating guaranty association's $110 million closing funding, and covered about half of the post-closing costs. At the time of the distribution, an additional $3 million was held back by Jefferson Pilot for allocation to the uncovered portions of covered policies. Upon completion of seriatim calculations, it was determined that only $2,089,892 was required for that allocation. In December, NOLHGA received the remaining $910,108 as a holdback refund. That balance is expected to be distributed to participating guaranty associations in the next several weeks.
Task Force Chair - John Colpean; Staff Contact - Joni ForsytheCALENDAR/CONFERENCE CALLS
January 26 Legal Committee Claims Valuation Subgroup Meeting, Dallas, TX
January 31 Compensation Committee Meeting, San Diego, CA
Jan. 31-Feb. 1 NOLHGA Board of Directors Meeting, San Diego, CA