MPC Meets in Phoenix
The Members' Participation Council (MPC) met in Phoenix, Ariz., on February 21-22, 2006. The following are summaries of task force insolvency reports presented during the meeting:
Staff Contact - Sean McKenna American Western Life Insurance Company (Utah)Task Force Chair Chuck Renn (Missouri) announced that the task force has requested updated expense figures from the affected guaranty associations, and he urged the associations to supply that information to NOLHGA as quickly as possible.
Task Force Chair - Chuck Renn; Staff Contact - Executive Life Insurance Company (Calif.)The Executive Life MPC met in closed session.
Task Force Chair - Art Dummer; Staff Contact - Bill O'Sullivan Life & Health Insurance Company of America (Pa.)Task Force Chair Linda Becker (Kansas) reported that the task force is considering how to proceed with the long-term care block of business after no bids were received through the RFP process. She added that a report on the results of the audit of Swanson & Associates (the third-party administrator) would be issued soon. Task Force Legal Counsel Charlie Richardson (Baker & Daniels) discussed the status of negotiations on the commutation of four reinsurance agreements, and the MPC passed a resolution authorizing the task force to enter into the agreements with the companies.
Task Force Chair - Linda Becker; Staff Contact - Metropolitan Mortgage Companies (Ariz., Idaho, & Wash.)NOLHGA President Peter Gallanis reviewed the recent assumption agreement resulting in Great American assuming the policies of the Idaho and Arizona companies (Old Standard Life and Old West Annuity & Life, respectively).
Task Force Chair - Art Dummer; Staff Contact - National Heritage Life Insurance Company (Del.)Task Force Chair Dan Orth (Illinois) reported that the NHL Task Force Litigation Subgroup met with the receiver and counsel to evaluate the likelihood of success of several ongoing litigation efforts. The subgroup plans to conduct an independent review of the major cases still pending and provide its feedback to the receiver.
Task Force Chair - Dan Orth; Staff Contact - States General Life Insurance Company (Tex.)Task Force Chair Tad Rhodes (Oklahoma) reported that as of January 2, 2006, all remaining SGLIC health policies were transferred to New Era pursuant to an assumption agreement. In February, the special deputy receiver discovered five life insurance policies that had been opted out of a pre-receivership assumption reinsurance transfer; these policies were being administered by American Founders Life Insurance Company pursuant to a co-insurance agreement with States General. Following discussion, the MPC passed a resolution authorizing the task force to proceed with negotiation of an assumption agreement for transfer of those life policies.
Task Force Chair - Tad Rhodes; Staff Contact - Joni ForsytheArizona Director Urias & Others Address MPC General Session
Arizona Director of Insurance Christina Urias spoke at the MPC General Session about a number of regulatory issues, including a possible optional federal charter for the life insurance industry and the implications of the recent debate over the Insurer Receivership Model Act (IRMA). She also discussed efforts to develop a national catastrophe insurance plan to address damages from events like Hurricane Katrina.
The MPC General Session also featured a closed-session presentation from NOLHGA's Coverage/Claims Committee as well as a closed session on health insolvency privacy issues. The Administrators' Education Steering Committee sponsored a presentation entitled "Building Key Effective Working Relationships for Your Association" conducted by Bart Boles (Texas), Peter Gallanis (NOLHGA), Candie Kinch (Idaho), Phyllis Perron (Louisiana), Merle Pederson (Principal Financial Group and NOLHGA Chair), and Charlie Richardson (Baker & Daniels). NOLHGA President Peter Gallanis updated attendees on recent developments on Capitol Hill concerning financial services modernization, and MPC Chair Jack Falkenbach (Delaware) reported on the recent MPC Executive Committee meeting, activities of the Guaranty System Modernization Task Force, and the recent meeting of the NOLHGA Board of Directors.
Staff Contact - Sean McKenna2006 Conflicts Surveys & Antitrust Responses Past Due
NOLHGA's Conflicts and Antitrust surveys and certification forms were sent out by mail on February 2, 2006, to all NOLHGA members, personnel, and representatives, including NOLHGA's Board members, committee and task force members, and consultants. Responses were due on Friday, February 17. If you have not yet completed and returned these items, we ask that you please do so right away.
These materials must be completed on an annual basis. The forms should only take a few minutes to complete, and your timely response is very important. Responses may be submitted by fax (703.481.5209) or mail and should be directed to the attention of Tasha Stewart. Please feel free to call Tasha at 703.787.4110 if you have any questions or would like to request additional forms. As always, your assistance in this matter is greatly appreciated!
Staff Contact - Joni ForsytheGA Contact Info
Candie Kinch, executive director of the Idaho Life & Health Insurance Guaranty Association, has a new e-mail address. She can now be reached at [email protected].
Staff Contact - Sean McKenna