Legal Seminar to Explore Successful Receivership Court Strategies
Receivership Special Master Tom Collins will speak at NOLHGA's 2007 Legal Seminar to discuss his formula for "Solving Problems in the Texas Receivership Court." Among other innovations, Collins, who has presided over all insurance receivership matters in Texas since 1992, implemented mandatory quarterly status conferences for all insurance receivership estates. The conferences keep him up-to-date on all matters referred to him and provide a way for him to be accountable to the district judges to whom he makes recommendations. Collins, who graduated from the University of Texas Law School, has a mediation practice and also worked as a litigator with a Houston bankruptcy firm prior to his appointment as special master.
The Legal Seminar will be held July 12-13, 2007, in San Francisco at the Stanford Court Hotel. The meeting Web page features a link to the Stanford Court Hotel as well as other meeting information, and it will feature information on the July 11 MPC meeting when such information becomes available. The page also offers online registration for the Legal Seminar ($595 per attendee, with a $35 discount if you register before June 8) and MPC meeting (free registration).
The NOLHGA room rate for the meeting is $199/night plus tax, and the "Hotel Information" section of the meeting Web page features a link that allows attendees to book their room(s) online and obtain the special NOLHGA rate. The cut-off date for hotel reservations is June 19, but attendees are encouraged to book their rooms as soon as possible.
If you have any trouble accessing the meeting Web page, please contact Dan Hicks at [email protected] or 703.787.4112. Questions concerning the Legal Seminar should be directed to Meg Melusen at [email protected] or 703.787.4130.
Staff Contact -Discussions Begin Concerning Standards under NAIC's New Model Laws Framework
The May 11, 2007, issue of the NOLHGA Wire included an article concerning the NAIC's adoption of a new Model Laws Development Framework designed to refocus the development of model laws onto issues that the NAIC believes require uniform national standards and to increase the rate by which NAIC models are adopted in the states. Questions were raised at that time as to how the new process might affect pending model law initiatives, such as the ongoing efforts of the Model Act Revision Working Group (MARG) to update the Life and Health Insurance Guaranty Association Model Act and the proposed amendments to the Property and Casualty Insurance Guaranty Association Model Act, which had been scheduled for a June vote by the Receivership and Insolvency Task Force (RITF). One immediate effect has been the freezing of all further work on these models pending review and determination as to whether the amendments satisfy the new model laws criteria.
Under the new framework, NAIC resources may not be used for development of a model or model amendments unless the NAIC's Executive Committee, upon recommendation of the responsible project oversight committee, first determines that the proposal is one for which a uniform national standard is needed, and that NAIC members are committed to devoting significant regulator and association resources to support adoption of the proposed model or amendments in the states. If these criteria are satisfied, work on the model or amendments may be authorized. Going forward, the NAIC expects its members to actively support adoption of NAIC models in the states. To that end, the new model laws framework specifies that a vote in favor of a model or model amendment carries with it a commitment by the voting members to actively pursue legislative adoption in the states.
Over the course of the last few weeks, MARG and RITF, its parent task force, have struggled with the application of these standards to the pending guaranty association model act work. There appear to be more questions than answers. One particular challenge discussed by MARG and RITF is the difficulty in assessing the need for uniform adoption of a model provision and the likelihood of support in the states before the proposal has even been developed. It is difficult to commit to supporting model legislation sight unseen and without knowing whether there will be broad-based support for such legislation. Nevertheless, both MARG and RITF ultimately voted to recommend the continuation of work on these models as consistent with the stated criteria. The recommendation to proceed with work on these models is expected to be presented to the NAIC's Financial Condition (E) Committee when it meets in San Francisco on June 4. If approved, the recommendation will be sent on to members of the NAIC's Executive Committee for their consideration in accordance with the new model laws framework criteria. As these discussions go forward, NAIC members and interested parties alike will be looking for further guidance from NAIC leadership as to how these new standards will be applied.
Staff Contact - Joni Forsythe