Executive Life Insurance Company (CA)
ELIC Settlement Agreement Filed With Conservation Court
Following approval Feb. 25 by the Members' Participation Council, NOLHGA, the California insurance commissioner and Aurora National Life Assurance Company on March 4 signed agreements settling outstanding Aurora indemnity issues. Also on March 4, the settlement agreement was filed with the Superior Court of California, Los Angeles County, for approval. The initial hearing, held March 5, reportedly went well. A confirmation hearing has been scheduled for March 26. The California commissioner plans to send a set of the documents to participating guaranty associations.
Task Force Chair -- Art Dummer; Staff Contact - Kentucky Central Life Insurance Company (KY)NOLHGA Designee To Be Deposed In Connection With KCL Subsidiary Litigation
NOLHGA on March 5 was served an amended notice of deposition pursuant to a subpoena served previously by attorneys representing shareholders of Mid-Central Investment Company, (a subsidiary of the failed Kentucky Central Life Insurance Company) in a declaratory judgment and breach of contract action against Mid-Central pending in Franklin County Circuit Court in Kentucky. The subpoena purports to seek the deposition testimony of a NOLHGA representative relating to Mid-Central, its preferred shareholders and the transfer of assets in support of the Kentucky Central Liquidation Plan. All non-privileged documents responsive to the claimants' requests were produced last October and November. The deposition is scheduled for March 16 in the Fairfax, Va. office of the claimants' local counsel.
Meanwhile, NOLHGA learned late on March 5 that the claimants in this case also have sought the deposition of a Coopers & Lybrand designee for March 17 in Wayne, Pa. The scope of the inquiry for Coopers' deposition appears identical to that stated in the notice served upon NOLHGA. Because of the short notice, a continuance may be requested with respect to the Coopers deposition.
Task Force Chair -- John Colpean; Staff Contact - Joni Forsythe Mid-Continent Life Insurance Company (OK)A MARCH 17 HEARING in the Oklahoma County District Court has been scheduled on Oklahoma Commissioner John P. Crawford's report on the rehabilitation plan for Mid-Continent Life Insurance Company. The report affirms the commissioner's intent to resolve Mid-Continent's financial problems without raising policyholder premiums. According to the report, the commissioner will seek to fund Mid-Continent's rehabilitation with recoveries from a lawsuit against Florida Progress Corporation, Mid-Continent's parent company. The suit, filed Dec. 22, alleges Florida Progress to be the "alter ego" of Mid-Continent and seeks damages on the bases of negligence, breach of fiduciary duty, misappropriation of funds, unjust enrichment, violations of Oklahoma law and other theories of liability.
The commissioner's report also states that Mid-Continent's reserve deficiency is in excess of $310 million, a figure much larger than the $113 million reported previously by the insurance department. The report makes no reference to guaranty associations playing a role in Mid-Continent's rehabilitation.
Task Force Chair -- Sonya Ekart; Staff Contact - Bill O'Sullivan American Standard Life & Accident Ins. Co. (OK)AN OFFERING MEMORANDUM was distributed Feb. 27 to 22 companies which had expressed an interest in bidding on the business of American Standard Life & Accident Insurance Company. Recipients were asked to confirm by March 10 appointments to conduct on-site due diligence of the company's records. It is expected that the winning bidder or bidders will be selected by early May and that an assumption transaction closing could occur as early as June.
Meanwhile, task force representatives will meet with the assistant receiver and attorneys March 7 to discuss an extension of the effective date for American Standard's liquidation order and other issues relating to the timing of the case. The liquidation order currently is scheduled to become effective on April 1.
Task Force Chair -- Andrea Bowers; Staff Contact - Bill O'Sullivan First National Life Insurance Company (AL)THE DEPUTY RECEIVER notified NOLHGA that another batch of Medicare supplement claims totaling $97,000 has been processed and is ready for payment. During the week of March 9, NOLHGA will send to the affected guaranty associations detailed lists of obligations and payment instructions.
Task Force Chair -- Mike Marchman; Staff Contact - Joni Forsythe The American Life Assurance Corporation (AL)THE MONTGOMERY COUNTY Circuit Court on March 5 approved the receiver's petition for technical corrections in the order approving the assumption reinsurance agreement. This action by the court should permit the parties to close the agreement in a matter of days.
Task Force Chair -- Mike Marchman; Staff Contact - Joni Forsythe Fidelity Bankers Life Insurance Company (VA)MPC CHAIR PEGGY PARKER has stepped down as chair of the Fidelity Bankers Task Force and has appointed John Colpean of Michigan to succeed her. Ms. Parker also appointed Chuck Gullickson of South Dakota to the task force. In addition to the new appointees, the task force includes Bart Boles, Texas; William Falck, Florida; Ernie Long, California; Dan Orth, Illinois; and Peggy Parker, Virginia.
Task Force Chair -- John Colpean; Staff Contact -ETC.
NOLHGA Treasurer Promoted
Roger F. Harbin was promoted last month to executive vice president at SAFECO Life Insurance Companies in Seattle. Mr. Harbin, a NOLHGA director and treasurer, had been senior vice president at SAFECO, where he began his employment in 1977 as an actuarial student. As an actuary in 1984, Mr. Harbin founded the structured settlement annuities department and as vice president in 1987, he founded the banking services department. He became senior vice president of the annuities division in 1992.
New NOLHGA Phone and Voice Mail System
NOLHGA recently received several requests to re-publish the new direct-dial numbers of NOLHGA staff. All numbers are in the 703 area code:
Beal Gloria...787-4115 Klipstein, Dick...787-4117 Buonaguro, Tony...787-4102 Manclark, Hazel...787-4110 Carroll, Dana...787-4118 Meyer, Lisa...787-4106 Donnelly, Brian...787-4116 O'Sullivan, Bill...787-4104 Fleming, Joyce...787-4100 Peterson, Paul...787-4119 Forsythe, Joni...787-4103 Plumhoff, Krista...787-4121 Franklin, Angela...787-4105 Triana, Maria...787-4108 Howard, Bill...787-4120 Watson, Beth...787-4112 Hunt, Wanda...787-4113 Wilding, Holly...787-4111 Jagolta, Jay...787-4109 Wood, Laura...787-4114
The switchboard and fax numbers have not changed:ph: 703/481-5106; fax: 703/481-5209.
VOICE MAIL - please note: If calling the switchboard and prompted to dial the extension (if known), callers need only dial the last three digits of the staffer's direct-dial number (e.g., Ms.Wilding's extension is "111"). If a caller does not know the staffer's extension, he or she may dial "star, two" (*2) and then dial the first four letters (digits) of the staffer's LAST name. Please also note that the receptionist can be reached by dialing "0" ONLY during business hours (9 am - 5:30 pm EST). The system does not allow callers to "zero out" during non-business hours. Callers' patience is appreciated during this transition! Please do not hesitate to call any staffer with questions.
American Western Phone/Address Information
American Western Life Insurance Company has moved. The new address is 215 South State Street, Suite 300, Salt Lake City, UT 84111. Phone: 801/983-6400; fax: 801/983-6402.
CALENDAR
March 9-10: Receivership Law Advisory Committee, Chicago
March 11: Protocols Working Group, Chicago
March 14-18: NAIC Spring National Meeting, Salt Lake City
March 15: 1997 fourth-quarter expenses for National Heritage due to NOLHGA
March 30: Kentucky Central Asset Working Group, New York City
April 22-23: NOLHGA Board of Directors, Milwaukee
April 23-24: NCIGF Annual Meeting, Washington, D.C.
April 30: Seventh ELIC installment payment due Conference Calls
CONFERENCE CALLS
March 10: Unison International Life Task Force, 3 pm EST
Staff Contact - Sean McKenna