Statesman National Life (TX)
Statesman Placed in Liquidation; Closing Near
The district court of Travis County, Texas entered a permanent injunction June 10, placing Statesman National into liquidation. American Capitol Insurance and its affiliate, Texas Imperial Life , assumed Statesman National's business except for 111 policies, all but four of which were in Louisiana or Texas. Seven of the 31 affected associations, with over 85 percent of covered obligations, participated in an initial closing of the assumption reinsurance transactions, funding the transaction with $2 million in cash and $7.3 million in notes.
A supplemental closing is planned by June 30 for guaranty associations that needed more time to make their decisions and fund the transaction.
The initial closing of the assumption reinsurance transactions occurred only 99 days after the task force was formed.
Task Force Chair - Neil Rucksdashel; Staff Contact - Executive Life (CA)Gersenson Court Declines Rehearing
On June 16, the Pennsylvania Superior Court denied the Pennsylvania association's application for reargument in the Gersenson v. Pennsylvania Life and Health Insurance Guaranty Association case. As reported in the April 23 Weekly Wire, the Pennsylvania association petitioned for reargument following the Superior Court's April 8 decision affirming a lower court ruling which awarded $16.6 million to plaintiffs. The Pennsylvania association expects to petition the Pennsylvania Supreme Court to accept the case. The April 8 Gersenson decision may be found on the Litigation Site at PA0063. Gersenson briefs are also available on the Litigation Site.
Task Force Chair - Art Dummer; Staff Contact - Settlers Life (VA)Task Force Meets With Receiver
A working group of the Settlers task force met with the special deputy receiver on June 11 in Bristol. Task force conference calls were held on June 15 and 21, and the task force is in the process of reviewing materials and analyzing information provided by the receiver. Affected guaranty associations can expect to receive an executive summary, copies of the various orders and the Schedule T in the near future.
Task Force Chair - Mike Marchman; Staff Contact - Centennial Life (KS)Task Force Meets With Receiver
There have been recent developments on the litigation front. First, on May 28, the Universe Liquidator sued AXA in Idaho seeking an injunction against the payment by AXA to Centennial of the $36 million settlement funds and seeking a judgment against AXA for $2.4 million plus interest, attorneys fees, and costs. The gist of Universe's complaint was that Universe was entitled to certain reinsurance amounts from AXA as a result of the business that has been in dispute between Centennial and Universe. As a result of that action, AXA filed on June 4 an interpleader action in the Centennial liquidation court against the Universe Liquidator and the Centennial Liquidator and tendered $11.2 million to that court. AXA paid the remaining $24.8 million of the settlement funds to Centennial.
The result of all this is that the Centennial estate has received only a portion of the settlement funds free and clear, with the remainder ($11.2 million) tied up in the new interpleader action in the Centennial liquidation court in Kansas.
On June 17, the Working Group met in Chicago to consider a variety of legal and financial matters, including the litigation situation, the status of the LTD Block, the proof of claim situation in the Centennial estate, and other matters.
Task Force Chair - Mark Femal; Staff Contact -Legal Seminar Hotel Information
The Silvertree Hotel has advised that NOLHGA's room block is filling fast, and that the hotel expects to reach full capacity during the week of the Legal Seminar. Moreover, the hotel will not hold unreserved rooms for NOLHGA beyond Wednesday, June 30. If you have not already booked your room, please do so immediately. To reserve rooms, call 1.800.525.9402 and note that you are attending the NOLHGA Legal Seminar to assure the special rate of $105. Early indications suggest record turnout for this year's event. NOLHGA is checking the availability of space in surrounding properties in the event the hotel reaches full capacity. NOLHGA would be glad to assist attendees in finding accommodations if the hotel runs out of rooms.
Contact Karen Early at 703.787.4101 with any questions. We look forward to seeing you in Colorado.
Legal Seminar Planning Committee Chair - Frank O'Loughlin; Staff Contact - Joni ForsytheCALENDAR/CONFERENCE CALLS
June 29 Monarch Working Group Meeting with Receiver, Springfield, MA
July 15-16 NOLHGA Legal Seminar, Snowmass, CO