Changes Regarding MPC/Legal Seminar Hotel Reservations
The Stein Eriksen Lodge, site of NOLHGA’s 13th Annual Legal Seminar and MPC meeting (August 18-19 and 16-17, respectively), has sold out its guest rooms for the week of August 15–19, 2005. As an alternative, the Lodge has recommended the Chateau at Silver Lake, which is just across the street. Reservations can be made by calling Deer Valley Lodging at 800.453.3833 and requesting a guest room at the Chateau.
In other news, the deadline for meeting registration for NOLHGA’s 13th Annual Legal Seminar and the MPC meeting that will precede has been extended to Friday, July 29, 2005. Meeting registration information is available on the joint Legal Seminar/MPC meeting Web page, which also includes descriptions of the seminar’s featured presentations and speakers and other meeting information. For Legal Seminar attendees, discounts of up to $100 are offered to guaranty association administrators who register members of their boards of directors.
Please call Aimee Frye at 703.787.4115 or e-mail Meg Melusen at [email protected] for additional information about the seminar.
Staff Contact -Revised MPC Meeting Schedule Posted
A revised schedule for the next MPC meeting, which will be held in Park City, Utah, on August 16 and 17, 2005, has been posted in the "Meeting Resources" section of the Web page the MPC meeting shares with NOLHGA's 13th Annual Legal Seminar. The schedule features an additional task force meeting and new times for the ELIC Task Force meeting and MPC general session. The agenda for the general session will be posted at a later date.
As mentioned above, the registration deadline for the MPC meeting is July 29. Members can register on the meeting Web page or by e-mailing De Gadd at [email protected].
If you have any trouble accessing the meeting Web page or MPC schedule, please contact Dan Hicks at [email protected] or 703.787.4112. If you have any questions about the MPC meeting, contact Sean McKenna at [email protected] or 703.787.4106.
Staff Contact - Sean McKenna American Chambers Life Insurance Company (Ohio)Escrow Account Distributed
On July 20, 2005, NOLHGA distributed $159,000 to the guaranty associations affected by the ACLIC insolvency. Historically, NOLHGA maintained an escrow account for ACLIC to facilitate any funds transfers and/or distributions that might be required in connection with the insolvency. The need to maintain this escrow account has diminished, and the account is being closed with the residual funds being distributed to affected guaranty associations. These residual funds consist of uncashed premium refund checks, provider refunds, subrogation recoveries, and net interest earnings. A spreadsheet outlining the details was provided to each affected guaranty association. Questions should be directed to Gus Estrada ([email protected]; 703.787.4131) or Meg Melusen ([email protected]; 703.787.4130).
Task Force Chair - Chuck Gullickson; Staff Contact - American Life Assurance Corporation (Ala.)Receiver to Close ALAC Estate
The receiver for ALAC has filed a final accounting and report of disbursements for the estate through July 15, 2005, and is seeking dismissal of the receivership proceedings and discharge as receiver.
The ALAC estate has been held open for more than a year pending exhaustion of appeals with respect to various objections filed on behalf of New South Investment Corporation, formerly ALAC's sole shareholder. By order dated June 15, 2005, the Alabama Supreme Court disposed of the appeal, affirming the receivership court's June 2004 order approving disbursements on claims and authorizing the receiver to close the estate.
As a result of the appeal, the receiver has incurred additional litigation expenses, which have been paid from a small pool of estate funds that were held by the estate to cover those expenses. The receiver's accounting report and attached exhibits show a zero balance for estate assets as of July 15, 2005. Accordingly, there will be no further distributions on claims. The last distribution was paid to guaranty associations in November 2004. In total, the guaranty associations have recovered 100% of their $725,512 expense claims and about $548,090 (10%) of their $5.3 million policy-level claims.
A copy of the receiver's final accounting and report of disbursements is available to affected associations on NOLHGA's IRC database. You may also contact Aimee Frye ([email protected]; 703.787.4115) to request a copy.
Task Force Chair - Michael Marchman; Staff Contact - Joni Forsythe Midwest Life Insurance Company (La.)Status Conference Postponed
As reported at the May 2005 MPC meeting, the Midwest Life receiver filed a motion with the liquidation court in March 2005 stating, among other things, that any final estate distributions to the policy-level claimants should be offset in certain instances where the claimant received third-party subrogation recoveries, i.e., the Dain litigation settlements. On June 24, the 10 guaranty associations that sued and settled with Dain filed a joint response adverse to the receiver. A status conference had been scheduled for July 11 at the liquidation court in Baton Rouge; however, due to the severe weather associated with Hurricane Dennis, the status conference was rescheduled for September 26 at 2:00 p.m.
Litigation Task Force Co-chairs - William Falck & Chris Chandler; Staff Contact -