MPC Meets in Tampa

The Members' Participation Council (MPC) met in Tampa, Florida, on January 21, 2009. The following are summaries of task force insolvency reports presented during the meeting:

  Staff Contact - Sean McKenna Executive Life Insurance Company (California)

The Executive Life task force made a closed-session presentation.

Task Force Chair - Art Dummer;   Staff Contact - Bill O'Sullivan Executive Life Insurance Company of New York (New York)

The ELNY task force made a closed-session presentation.

Task Force Chair - Jack Falkenbach;   Staff Contact - Kentucky Central Life Insurance Company (Kentucky)

Task Force Chair John Colpean (Michigan) reviewed the Lessons Learned Report recently issued by the task force, and Staff Contact Joni Forsythe explained how claims arising from the small debit policies will be administered. Administration of these policies will be turned over to the affected guaranty associations on March 1.

Task Force Chair - John Colpean;   Staff Contact - Joni Forsythe Lincoln Memorial & Memorial Service Life Insurance Companies (Texas)

Task Force Chair Tad Rhodes (Oklahoma) reported on the status of claims administration and on efforts by the task force to streamline the claims submission process for funeral homes. Plans to issue an RFP for various blocks of business have been put on hold.

Task Force Chair - Tad Rhodes;   Staff Contact - Paul Peterson Medical Savings Insurance Company (Indiana)

The Medical Savings task force made a closed-session presentation.

Task Force Chair - Dan Orth;   Staff Contact - Joni Forsythe National Heritage Life Insurance Company (Delaware)

Task Force Chair Dan Orth (Illinois) reported on a settlement in the Bear Stearns case that resulted in a net recovery to the estate of $20 million. Although the receiver is analyzing issues associated with the settlement, the task force will seek at least a partial distribution of the funds as early access.

Task Force Chair - Dan Orth;   Staff Contact - Reliance Insurance Company (Pennsylvania)

Task Force Chair Tad Rhodes (Oklahoma) reviewed the details of the expense reimbursement agreement entered into with the liquidator. The task force's remaining activities include distributing expense recoveries, resolving the remaining three large disability claims, and monitoring asset recovery efforts.

Task Force Chair - Tad Rhodes;   Staff Contact - Standard Life Insurance Company of Indiana (Indiana)

Task Force Chair John Colpean (Michigan) reported on the status of Standard Life, which was placed in rehabilitation on December 18, 2008. The insolvency task force is still being assembled, and more information on the company can be found in the FAQ section of the company's Web site (www.standardlifeofindiana.com).

Task Force Chair - John Colpean;   Staff Contact - Universe Life Insurance Company (Idaho)

Task Force Chair Tad Rhodes (Oklahoma) reported on the settlement agreement with a number of agricultural trusts that have pursued litigation against the estate for years. Under the agreement, the estate will make a $2.4 million payment to the trusts as a group policyholder. The estate will also make a distribution of approximately $3 million to various guaranty associations.

Task Force Chair - Tad Rhodes;   Staff Contact - Paul Peterson

Life & Annuity Privacy Guidelines & More Addressed at MPC Meeting

A set of privacy guidelines developed by NOLHGA's Life and Annuity Privacy Working Group, chaired by Candie Kinch (Idaho), was adopted unanimously by the MPC at the January 2009 meeting during the general session. The general session also featured a report on changes to the NAIC's Life and Health Insurance Guaranty Association Model Act by Dave Perry (Montana). NOLHGA President Peter Gallanis reported on recent developments concerning financial services modernization on Capitol Hill, and MPC Chair Bart Boles reported on the activities of the MPC Executive Committee and the NOLHGA Board.

A number of workshops and presentations were held before the MPC general session. Accounting Issues Committee Chair Lowell Miller (North Carolina) and committee member Peter Leonard (California) reviewed the new IRS Form 990 and how guaranty associations can complete the form. The Administrators Education Steering Committee held a panel discussion on answering questions from consumers and the media that featured William Falck (Florida), Mike Surguine (Arizona), Peter Gallanis (NOLHGA), and Sean McKenna (NOLHGA). In addition, Coverage/Claims Committee Chair John Colpean and committee member Kevin Griffith (Baker & Daniels) reported on the committee's initial recommendations concerning several coverage questions that have arisen over the past few months.

  Staff Contact - Sean McKenna