American Standard Life Insurance Company (OK)

Parties expressing an interest in bidding on the business of American Standard Life Insurance Company were advised on Jan. 21 of a change in the bid schedule. The revised schedule calls for bid packages to be released at the end of February. Responses will be due in mid-April and a winning bidder will be named early in May. The task force continues to work on the bid package.

Meanwhile, two special justices were appointed to sit on the Oklahoma Supreme Court for the reconsideration proceedings in State of Oklahoma ex rel. John P. Crawford, Insurance Commissioner, et. al. v. The Guardian Life Insurance Company of America. The appointment was necessary because of the recusal and disqualification of two of the court's regular justices. The Guardian filed a motion Jan. 16 in response to the court's decision to vacate and reconsider its prior order, challenging the court's decision on due process grounds and requesting clarification of the court's order.

Task Force Chair -- Andrea Bowers;   Staff Contact - Bill O'Sullivan

ETC.

Priority Scheme Challenge Abandoned
The United States filed a motion Jan. 6 to dismiss its 7th Circuit appeal of the federal district court's decision in Boozell v. United States of America. The dismissal was granted Jan. 8. The federal district court on Sept. 25 had found that the priorities set forth in the Illinois Insurance Liquidation Act were enacted for the purpose of regulating the business of insurance within the meaning of the McCarran Ferguson Act and therefore are not preempted by the federal priority statute.

The government's abandonment of the Boozell appeal may signify an intent to concentrate on the pending 4th Circuit Appeal in Northwestern Security Life as a forum for its challenge of state priority schemes. Argument in the Northwestern case is scheduled to begin Jan. 28. The combination of the strong language in the Boozell opinion combined with the government's abandonment its appeal in the case, offer strong support for shielding the priority scheme from preemption by the federal priority statute in the Northwestern case.

Legal Committee Meeting
NOLHGA's Legal Committee convened Jan. 15-16 in Tampa, Fla. to discuss legal topics for 1998, which include pending projects and legislative efforts. Staff extends a warm welcome to new committee members and special thanks to those who have volunteered (or have been volunteered!) to serve on various sub-committees and working groups during the year, as well as to those who agreed to participate in the pilot program to test the new encryption software for NOLHGANet.

Litigation Subgroup Meeting
The Litigation Subgroup (formerly the GIC Litigation Subgroup) met Jan. 14 in Tampa, Fla, to review and discuss pending litigation, including recent decisions and pending appeals, and a state-by-state review of the Unisys litigation status, obstacles and strategy. Nearly 30 participants from more than 15 jurisdictions attended. The subgroup requests that new decisions be forwarded to NOLHGA as they become available so that they can be distributed to all members.

Meanwhile, Barbara Brown announced that she will be leaving the subgroup and the Legal Committee and resigning her position with the Texas guaranty association to pursue other career options. Best of luck to Ms. Brown in her future endeavors!

1997 Year-End Report to the Membership
Staff is working to complete the 1997 Year-End Report to the Membership in time for the Board of Directors' meeting Feb. 3-4 in San Diego. Copies will be mailed to administrators, their boards of directors and legal counsel, insurance commissioners, and all committee and task force members. Extra copies will be available upon request.

Farewell and Welcome
Denise Combs-Herrman, secretary to the legal department, has resigned her position effective Jan. 23. She will be an executive assistant to the vice president of an information management consulting company in Northern Virginia.

Wanda M. Hunt joined the NOLHGA staff on Jan. 20. Ms. Hunt will serve primarily as NOLHGA President Brian J. Donnelly's administrative assistant. Her number is 703/787-4113.

  Staff Contact - Sean McKenna

CALENDAR

Jan. 29-30 NAIC/IAIR Liquidators' Workshop, La Jolla, Calif. Feb. 2-3 NOLHGA Board of Directors, MPC Executive Committee and Insolvency Task Force Chair, San Diego Feb. 3 Audit Committee, San Diego Feb. 3-4 NOLHGA Board of Directors, San Diego Feb. 23-25 Members' Participation Council, San Diego

  Staff Contact - Sean McKenna

CONFERENCE CALLS

Jan. 28 American Standard Working Group, 11:30 am EST

  Staff Contact - Sean McKenna