Mid-Continent Life (OK)
Bid Opening Date Delayed
On May 27, the Oklahoma District Court issued an order amending the Notice of Solicitation Relating to the Rehabilitation of Mid-Continent to change the public opening of bid responses to June 10, 1999 at 10:00 a.m. The bids originally were scheduled to be opened on June 8, 1999.
In a related matter, on May 28, UICI (the parent company of MEGA Life and Health Insurance Company) filed a motion to intervene in the receivership proceedings together with a motion for temporary and permanent injunctive relief against the receiver. The basis for UICI's motions is that the receiver's "notice and solicitation are unclear and uncertain to the extent it is impossible for UICI or other prospective bidders to submit responsible bids without obtaining additional information...". As relief, UICI requests the court to enter a temporary injunction to cancel the June 4, 1999 deadline for submitting bids and enter a permanent injunction requiring the receiver to make the bid specifications more definite and certain before bids can be solicited.
As an alternative to injunctive relief, UICI requests the court to order the receiver to keep all bids confidential until he makes a recommendation to the court for accepting a bid. A hearing has been scheduled for June 8 at 3 p.m. to consider the UICI motions.
Task Force Chair - Sonya Ekart; Staff Contact - Bill O'Sullivan Centennial Life (KS)Omnibus Proof of Claim Filed
On May 25, NOLHGA filed an omnibus proof of claim in the Centennial liquidation in Kansas on behalf of all 49 affected guaranty associations. It is in a form virtually identical to the form distributed at the May MPC meeting in Washington, DC. If any administrator would like a copy of the proof as filed, please call Bill Howard at NOLHGA.
Task Force Chair - Mark Femal; Staff Contact - Kentucky Central Life (KY)$41 Million Distribution
The Franklin Circuit Court has approved the Liquidator's May 26 petition to approve distribution to Class 2 creditors of the estate. As a result, on June 2, NOLHGA received a distribution in excess of $ 41 million from the Kentucky Central estate. This completes repayment of the PGAs' $110 million closing funding and repays a portion (about half) of the post-closing costs. Of the amount received, approximately $ 10 Million will be used to fund the projected costs for the fifth plan year and final true-up. The balance will be returned to the participating guaranty associations after the allocation calculations have been completed.
An additional sum of approximately $28,000 was received from Jefferson Pilot as the "Subsequent Buyer's Enhancement" described in the Life and Health Agreement. This amount will be added to the distribution to the PGAs.
Task Force Chair - John Colpean; Staff Contact - Joni Forsythe Life Insurance Company of Alaska (AK)Liquidation Ordered
On February 12, 1999, the Alaska Superior Court at Anchorage entered an order of liquidation appointing the director of Alaska's Division of Insurance as receiver for the purpose of liquidating Life Insurance Company of Alaska (LICA). LICA was domiciled in Alaska and authorized to transact insurance business in the state of Washington. Most of its policies were assumed by the Central Security Life Insurance Company.
The director sought the liquidation order based on a number of factors, including the removal of LICA's books and records from Alaska to Connecticut, its failure to maintain a place of business or transact business in Alaska for over a year, its failure to pay the claims of its insureds, its attempt to file for federal bankruptcy protection in Connecticut and its refusal to allow the review of its books and records by the Alaska Division of Insurance.
Staff Contact -ETC.
Tennessee Association Address Change
The Tennessee Association has a new address. Effective June 14, the new address will be 1200 First Union Tower, 150 4th Avenue North, Nashville, Tennessee, 37219-2433. The phone (615.242.8758) and fax (615.256.8197) numbers will remain the same.
NOLHGA's 8th Annual Legal Seminar Snowmass, Colorado
JULY 15-16, 1999
SILVERTREE HOTEL
100 ELBERT LANE, SNOWMASS, CO 81615
PH: (800) 525-9402 OR: (970) 923-5494
- Featured Speakers Include:
LAWRENCE S. POZNER, ESQUIRE - NBC News Commentator
LINDA DALE HOFFA, ESQUIRE - Assistant US Attorney, Eastern District of PA
MARTIN WEISS - Weiss Ratings, Inc.
- Hotel Reservations
Call the Silvertree reservation desk at 1-800-528-9402, and be sure to tell themthat you are with NOLHGA to assure the special rate of $105.00 per night.
- Group Discount Fares
Available on United Airlines through Agency International.
Call Agency International at (800) 831-6163 (ext. 15), ask for Ashley Collier,and tell her you want NOLHGA's discount rate.
- Cancellation Policy
NOLHGA must receive cancellations by June 30th in order for a refund to be issued.
1999 Legal Seminar Planning Committee
Franklin D. O'Loughlin, Chair
Andrea Bowers, Joni Forsythe, Chuck Gullickson, Jana Lee Pruitt,
James Rhodes, Charles T. Richardson, Jacqueline Rixen
1999 Legal Committee
John C. Colpean, Chair
Allen C. Goolsby, III, William C. Herbert, Allan W. Horne, Van R. Mayhall, Jr.,
Frank D. O'Loughlin, Wilson D. Perry, Jana Lee Pruitt, James W. Rhodes,
Charles T. Richardson, Jacqueline Rixen
REGISTRATION
Name (as it is to appear on badge):
______________________________
Association, Firm, Company, other affiliation:
______________________________
Registration Fee:
$325 per person (does not include cost of hotel room). Please make checks payable to NOLHGA.
Registration fees must be received by 6/25.
Please check the boxes below:
__ YES! I will attend the Legal Seminar
__ YES! I will attend the luncheon July 15
__ YES! I will attend the reception July 15
__ YES! I will apply for CLE in my state *
* CLE Credit will be available for participating states. Please contact Karen Early for details at: (703) 787-4101.
REGISTRATION DEADLINE JUNE 25TH
Please return this form by mail along with your registration fee to:
KAREN EARLY
NATIONAL ORGANIZATION OF LIFE AND HEALTH INSURANCE
GUARANTY ASSOCIATIONS
13873 PARK CENTER ROAD, SUITE 329
HERNDON, VIRGINIA 20171
Questions? Please contact Karen Early at NOLHGA.
TEL: (703) 787-4101
FAX: (703) 481-5209