AMS Life Insurance Company (Ariz.)

Receiver Makes Early Access Distribution

The May 28, 2004, issue of the NOLHGA Wire included an article reporting that the receiver for AMS Life had agreed to make a partial distribution to the guaranty associations from available estate assets. Specifically, the receiver proposed a distribution of $2.5 million, which, when paid, would increase total distributions to date to just under $68.5 million; i.e., approximately 67 percent of the total guaranty association claims against the estate.

The petition for approval of the proposed distribution was filed on May 19 and was approved by the court at hearing on June 9. The order approving the distribution specifies the allocation of funds among the affected guaranty associations (a copy of that order is available upon request). The receiver has advised that distribution payments were sent by wire transfer directly to the affected state guaranty associations early this week.

Further distributions to the guaranty associations are anticipated following exhaustion of a pending appeal with respect to the receiver's $19 million judgment against certain former accountants and actuaries of AMS Life.

Task Force Chair - Luther Hill;   Staff Contact - Joni Forsythe London Pacific Life & Annuity Company (N.C.)

Comments on Opt-out Policy Guidelines Due Today

As a reminder, guaranty associations should have received the opt-out package for the exchange agreement with Hartford Life Insurance Company. The opt-out period ends June 30. Also, guaranty associations need to provide comments regarding methods used in determining coverage and for ongoing administration of policyholders who elect to opt out of the exchange program by today, June 18.

In addition, the notice of hearing for the exchange agreement and petition for liquidation has been mailed to claimants. A copy has been sent to guaranty associations via e-mail. Also included in the e-mail were a number of question and answer formats that can be used by guaranty associations if they receive any calls from policyholders. The hearing is currently scheduled to be held on July 8, 2004, in North Carolina; at that time, it is anticipated that the exchange agreement and plan of liquidation will be approved by the court.

Task Force Chair - Frank Gartland;   Staff Contact - Paul Peterson

Political Commentator Mark Shields to Speak at Annual Meeting

Nationally known columnist and commentator Mark Shields will give the keynote address at NOLHGA's 21st Annual Meeting, which will be held October 26-27, 2004, at the Four Seasons Hotel Las Vegas in Las Vegas, Nev. Shields, who has been called "the wittiest political analyst around," will share his views on the American political scene and the upcoming presidential election.

Shields serves as moderator of CNN's The Capital Gang and also appears on NewsHour with Jim Lehrer on PBS. His column on politics is syndicated nationally, and his book about the 1984 presidential campaign, On the Campaign Trail, has been praised as "funny," "irreverent," and "insightful."

An MPC meeting will be held at the Four Seasons Hotel Las Vegas before the Annual Meeting. More information about the Annual Meeting and the MPC meeting will appear in future issues of the NOLHGA Wire and other NOLHGA publications. If you have any questions about the Annual Meeting, please contact Holly Wilding at 703.787.4111 or [email protected].

  Staff Contact - Sean McKenna