Thunor Trust Companies
Franklin American Closing Schedule
The assumption reinsurance agreement between Franklin American Life in Liquidation, Investors Heritage Life, NOLHGA and participating guaranty associations is scheduled to close July 6. The 14 participating guaranty associations will fund approximately $11 million and the estate will fund approximately $33 million as an early access distribution.
With the closing of this transaction, the guaranty associations have fulfilled their obligations to policyholders of the five multi-state companies in the Thunor Trust. The policies of the Oklahoma-only Company, Farmers and Ranchers Life, were assumed on January 21, 2000 by Farmers Union. The Arkansas-only company, Old Southwest Life, is still in rehabilitation.
NOLHGA filed on June 22 omnibus proofs of claim on behalf of all affected guaranty associations with the Mississippi Liquidator of the estates of Family Guaranty Life, First National Life Insurance Company of America and Franklin Protective Life. NOLHGA mailed copies of the proof of claims to the affected associations on June 30.
Task Force Chair - Chuck LaShelle; Staff Contact - Mid-Continent Life (OK)Court Rules Records Not Subject to Public Disclosure
On June 27, the Oklahoma Supreme Court ruled that Mid-Continent records in the possession of the Oklahoma Insurance Commissioner, while acting as receiver of Mid-Continent, were not subject to public inspection under Oklahoma's Open Records Act. The Court's ruling overturned an earlier District Court decision ordering the Commissioner to make the records available to Mid-Continent policyholder Michael Farrimond pursuant to the Open Records Act.
In overturning the lower court's decision, the Oklahoma Supreme Court held that the Open Records Act did not apply because Mid-Continent's records in the custody of the Insurance Commissioner, while acting as receiver, did not constitute "government records" within the meaning of the Act. NOLHGA's Mid-Continent Task Force filed an amicus brief in support of the Oklahoma Commissioner's opposition to the application of the Act.
Task Force Chair -Sonya Ekart; Staff Contact - Bill O'Sullivan National Affiliated Investors Life (LA)Initial Closing Payments Due
As a final reminder, closing on the National Affiliated Investors Life assumption reinsurance agreement will take place on July 7th, at which time NAIL's in-force business will be assumed by Citizens Security Life Insurance Company and United Liberty Life Insurance Company.
Guaranty association funding is due no later than June 28th (if paid by check) or July 5th (if paid by wire transfer). Those associations that will be funding with a promissory note should contact Paul Peterson for instructions. Also, any association that is unable to fund by the above dates should contact Paul Peterson immediately to make alternative arrangements.
Task Force Chair -Chuck Gullickson; Staff Contact - Paul Peterson Confederation Life (CN)Escrow Account Refunds
Refund checks will be mailed to affected guaranty associations the week of July 9. The refunds represent the remaining expense reimbursements received from the estate for expenses incurred by NOLHGA and the interest earned on these funds. As no future distributions from the estate for expense-related items are expected, NOLHGA will be closing the escrow account.
Task Force Chair -Chuck LaShelle; Staff Contact - American Chambers Life (OH)Information Line Improvements
Improvements have been made in the 800 number policyholders call to get information regarding policy benefits and claims. Antares has 28 employees answering customer service calls, with additional employees to be added in two weeks. When these employees are added, a total of 38 will be answering customer calls, up from 18 at the onset. Antares has also increased the number of telephone trunk lines to 96. These changes are expected to reduce wait times for callers. Policyholder inquiries can be directed to 1.800.393.8633. Callers will be presented with an automated menu and their calls will be routed to the appropriate department.
Also, those guaranty associations that receive claims directly from policyholders or providers should forward them to: American Chambers Life Insurance Company, PO Box 3058, Naperville, IL 60566-7058.
Finally, "Batch #1" of medical claims, which includes approximately 4,000 claims, was sent overnight on June 29th to the appropriate associations. Under the terms of the service agreement, guaranty associations will have two weeks to review claims and provide funding to pay them. Batches of medical claims will be released every week.
Task Force Chair -Chuck Gullickson; Staff Contact - American Standard Life (OK)Nicholas Appeal Dismissed
On June 26, the Oklahoma Supreme Court issued an order dismissing David Nicholas' appeal of the receiver's sale of ASL's Colorado Ranch Property. Nicholas, the former owner of ASL, has one remaining ASL-related appeal before Oklahoma's highest court. That Appeal seeks to overturn a District Court order denying Nicholas intervention in the ASL receivership proceeding.
Task Force Chair -Andrea Bowers; Staff Contact - Bill O'Sullivan NALICO (PA)Escrow Account Refunds
Refund checks will be mailed to affected guaranty associations the week of July 9. The refunds represent interest earned on the NOLHGA escrow account. As a result, NOLHGA will be closing the escrow account in the near future.
Task Force Chair -Tad Rhodes; Staff Contact - Paul PetersonCALENDAR/CONFERENCE CALLS
July 20-21 NOLHGA Legal Seminar, Boston, MA
August 16-18 NOLHGA MPC Meeting, San Francisco, CA