Bankers Commercial Life Insurance Company (Tex.)
Funding Schedules Available Soon
The first true-up funding schedules related to the assumption reinsurance transaction with Philadelphia American Life Insurance Company should be sent via e-mail to guaranty associations on March 7 or March 10. Total funding is approximately $300,000. Payments are due no later than April 1, 2003, in order to close on April 4; prompt payment will be appreciated.
The true-up includes finalization of due, deferred, unearned, and advance premium reserves; life and disability reserves; and post-effective date (September 1, 2002) transactions. As a reminder, the final accounting for the transaction is expected to occur in November 2003 with the finalization of the IBNR/ICOS reserves.
Task Force Chair - William Falck; Staff Contact - Paul Peterson Inter-American Insurance Company of Illinois (Ill.)Notice of Proposed Final Claim Action Sent to GAs This Week
The OSD is in the process of trying to wind down and prepare for the closing of the Inter-American estate. To this end, the OSD has sent the guaranty associations affected by Inter-American a notice and packet of information reflecting the OSD's proposed final action with respect to guaranty association claim allowances. The OSD has used this process of providing notice of proposed claim valuations to the guaranty associations throughout the course of the receivership.
This is the final and cumulative notice and claim listing. The notices were mailed on March 3, 2003, and they require a written response from each guaranty association within 30 days (i.e., by April 2) indicating whether there is any objection to the proposed claim valuation.
The task force is making arrangements to have its financial consultant work with the OSD on an expedited basis to review the claim figures and adjustment methodology used by the OSD in reaching its allowance determinations. The results of that review will then be made available to the individual affected guaranty associations to assist them in responding to the OSD notices.
Task Force Chair - William Falck; Staff Contact - Joni Forsythe Investment Life Insurance Company of America (N.C.)Proof of Claim Information Due April 4
On March 5, an e-mail message was sent to guaranty association administrators requesting updated proof of claim expense/claim information. Guaranty associations should submit inception-to-date amounts as of December 31, 2002; the deadline for submission is April 4, 2003. The proof of claim system on the NOLHGA Web site should be used to submit claims.
We request your prompt response, as the North Carolina receiver will be evaluating final claim amounts in order to begin preparations for final estate distributions.
Task Force Chair - Frank Gartland; Staff Contact - Paul Peterson National Affiliated Investors Life Insurance Company (La.)Proof of Claim Information Due March 21
The deadline for submitting updated proof of claim expense/claim information is March 21, 2003. Guaranty associations should submit inception-to-date amounts as of December 31, 2002. The proof of claim system on the NOLHGA Web site should be used to submit claims.
Task Force Chair - Chuck Gullickson; Staff Contact - Paul Peterson Statesman National Life Insurance Company (Tex.)Payments to GAs Scheduled for Next Week
Payments to guaranty associations for the final assumption agreement reconciliation will be issued next week. On March 7, an e-mail message containing a memo detailing the by-state breakdown was sent to all affected guaranty associations. Please contact Gus Estrada ([email protected]; 703.787.4131) if you do not receive your payment in the near future.
Task Force Chair - Neil Rucksdashel; Staff Contact -Mark Your Calendar for NOLHGA's 20th Annual Meeting!
NOLHGA's 20th Annual Meeting will be held October 28 and 29, 2003, at the Dallas Four Seasons Resort & Club, a 400-acre resort located a few miles from the Dallas-Fort Worth International Airport. The Four Seasons features a TPC championship golf course, a 176,000-square-foot sports club facility, and a world-class spa. The speaker line-up for the meeting is not complete at this time, but NAIC President and Arkansas Insurance Commissioner Michael Pickens has already agreed to speak at the meeting.
More information on NOLHGA's 20th Annual Meeting, which will be preceded by an MPC meeting on October 27, will appear in the NOLHGA Wire and other NOLHGA publications in the coming months.
Staff Contact - Sean McKennaNOLHGA Files Amicus Curiae Brief in Support of AMLICO Receiver's Petition for Certiorari
During the week of March 2, 2003, NOLHGA filed an amicus brief supporting the Petition for Certiorari filed by the Massachusetts receiver for American Mutual Liability Insurance Company (AMLICO) asking the United States Supreme Court to consider the decision by the First Circuit Court of Appeals in Bowler v. United States, Case No. 02-1124. In this decision, the First Circuit Court of Appeals issued two rulings. First, the court ruled that guaranty association claims reverse preempt claims of the United States, thus upholding the model priority system. Second, the court ruled that the United States was not bound by claims filing deadlines.
The AMLICO receiver is asking the Supreme Court to consider the second issue and, ultimately, to reverse the First Circuit Court of Appeals and hold that the United States is bound by claims filing deadlines. The NAIC has also filed an amicus curiae brief supporting the receiver. The United States has asked for an extension to file its response brief in April.
Staff Contact - Joni ForsytheJ. Anthony Clark Named New Head of Illinois Insurance Department
Illinois Governor Rod R. Blagojevich has named J. Anthony Clark as the new director of the Illinois Department of Insurance. Clark, who earned his law degree from the University of Chicago, has 18 years of legal experience, 10 of which were spent as counsel for Montgomery Ward Life Insurance. He is a member of the board of directors of the Cook County Bar Association and has a master's degree in labor relations from Cornell University.
Staff Contact - Sean McKennaGA Contact Info
Jim Mumford, a NOLHGA Board member and a member of the boards of the Oklahoma and Virginia guaranty associations, recently joined the law firm of Nyemaster, Goode, Voigts, West, Hansell & O'Brien, P.C., as "of counsel." He will continue to represent ING Americas and its related companies on the state guaranty association boards on which he sits. His new contact information is:
Nyemaster, Goode, Voigts, West, Hansell & O'Brien, P.C.
700 Walnut Street, Suite 1600
Des Moines, IA 50309
Phone: 515.283.8177
Fax: 515.283.8045
E-mail: [email protected]