Life & Health Insurance Company of America (Pa.)
Company Placed in Liquidation
Life & Health Insurance Company of America (LHICA), a Pennsylvania-domiciled insurer, was placed in liquidation on July 2, 2004. The company was licensed in 29 jurisdictions: the District of Columbia, U.S. Virgin Islands, Alabama, Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Louisiana, Maryland, Mississippi, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, Tennessee, Utah, and West Virginia. LHICA was an approximately $50 million asset company at year-end 2003, with home service life and health, long-term care, annuity, disability income, and hospital indemnity business.
MPC Chair Jack Falkenbach (Delaware) has appointed a task force consisting of Chair Linda Becker (Kansas) and William Falck (Florida), Joe Horvath (Pennsylvania), Dan Orth (Illinois), and Jack Boritas (Maryland). The task force will make a presentation to the MPC in Seattle and hopes to have a plan for discharging guaranty association obligations at that time.
Task Force Chair - Linda Becker; Staff Contact - Kentucky Central Life Insurance Company (Ky.)Liquidation Court Approves Payment of $16 Million for Expenses
On July 2, 2004, the Kentucky Central Liquidation Court held a hearing on an Expense Settlement Agreement between NOLHGA and the liquidator. After a short hearing, the court entered an order approving the Expense Settlement Agreement and the "prompt payment to NOLHGA, on behalf of itself and the PGAs, of $16,038,775 in satisfaction of the Expense Claims." The payment is sufficient to cover all expenses reported by NOLHGA and the associations from the inception of the Kentucky Central receivership through mid-2003.
Task Force Chair - John Colpean; Staff Contact - Joni Forsythe London Pacific Life & Annuity Company (N.C.)Exchange & Assumption Agreements Approved
On June 21, 2004, the North Carolina court in Wake County approved the annuity assumption agreement between Hartford Life and the North Carolina rehabilitator for London Pacific. This agreement transfers immediate annuity and supplemental contract policies to Hartford Life. It is anticipated that the closing will occur during August. No guaranty association involvement is necessary, as Hartford Life will be acquiring 100 percent of these annuity policy liabilities via the assumption agreement.
On July 8, hearings were held for the petitions requesting approval of the universal life assumption and the deferred annuity exchange agreements. Similar to the annuity assumption agreement, the universal life agreement transfers the life policies to Hartford Life via assumption. This transaction is expected to close in early 2005 once remaining IRS Section 7702 issues are resolved on a small block of policies. Again, no guaranty association involvement should be necessary for this block.
The deferred annuity exchange agreement allows for the transfer of London Pacific deferred annuities to Hartford Life via a 1035 exchange program. An opt-out package is expected to be mailed to eligible policyholders beginning in early August. This agreement is expected to close in early October and will involve guaranty associations. Expected guaranty association funding is approximately $113 million. All affected guaranty associations elected to participate in the exchange agreement.
On July 8, the Wake County court ruled from the bench that the universal life and deferred annuity exchange agreements, along with the plan (and the related petition) of liquidation, were all approved. We anticipate the applicable court order to be signed in the near future.
Task Force Chair - Frank Gartland; Staff Contact - Paul PetersonModernization Workshop Sign-up Deadline Nears
As part of the program for the upcoming MPC meeting, which will be held in Seattle, Wash., on July 20-21. 2004, the Administrators' Education Committee is coordinating a workshop featuring members of the Guaranty System Modernization Task Force. The Update on Guaranty System Modernization will be held on Tuesday, July 20, from 2:00 to 4:00 p.m. and will offer attendees an opportunity to discuss the topics addressed at the State Guaranty Association Board Chairs' Conference in May as well as other modernization issues.
To ensure that the meeting room is large enough to accommodate all attendees, we are asking MPC meeting attendees to notify Holly Wilding if they plan to attend the workshop or if they will be unable to attend. If you have not yet informed Ms. Wilding of your plans, please e-mail her at [email protected].
Staff Contact -Indiana Governor Names Interim Insurance Commissioner
On July 8, 2004, Indiana Governor Joseph Kernan appointed Amy Strati as interim commissioner of the Indiana Department of Insurance beginning July 15. Strati, who currently serves as the department's chief legal counsel, has been with the agency since 1993. She will fill the vacancy until a search can be conducted for a permanent replacement.
Strati replaces Sally McCarty, who served as commissioner since 1997. McCarty resigned last month to pursue a consulting job with the Hemophilia and Thrombosis Center at St. Vincent Hospital in Indianapolis.
Staff Contact -Beverly Goodwine Joins NOLHGA
Beverly Goodwine will join NOLHGA later this month as our new administrative assistant/meeting coordinator. She is currently an executive administrator and event coordinator for the Washington Metropolitan Area Transit Authority (Metro). She has been with Metro for almost three years. Prior to joining Metro, she was an independent contractor performing business-related meeting planning; she also served as an administrative assistant and event coordinator for the Mississippi Contract Procurement Office in Biloxi, Miss.
Ms. Goodwine will attend the July MPC meeting in Seattle, Wash. Please join the NOLHGA staff in welcoming her to NOLHGA.
Staff Contact - Sean McKenna