American Educators Life Insurance Company (Ala.)
Receivership To Close
On February 20, the Circuit Court for Pike County, Ala., approved the receiver's petition to close this receivership and distribute its remaining assets. The order officially closes and terminates this insolvency, except for minor remaining activities incurred by the receiver (IRS filings, final distributions, etc.). The petition indicates total payments to guaranty associations in the amount of approximately $671,000, all of which will be distributed to the affected guaranty associations (Alabama, Georgia, and Louisiana). Payments should be made to the guaranty associations directly by the receiver in early April.
American Educators was affiliated with Alabama Life (Ala.) and Consolidated National Life (Ind.) Insurance Companies. American Educators will now become the second of these three cases to close (Consolidated National closed in 1999).
Staff Contact - Paul Peterson Bankers Commercial Life Insurance Company (Tex.)GAs To Receive Premiums
Premium collections made through New Era for December 2001 and January 2002 will be released to affected guaranty associations by next week (with the exception of Missouri, Texas, and Utah, which receive their related premiums weekly from New Era). Approximately $528,000 will be disbursed, and guaranty associations will receive a memorandum from NOLHGA detailing the amount by state and line of business.
Task Force Chair - William Falck; Staff Contact - Paul Peterson National Heritage Life Insurance Company (Del.)Weiss Arrested Again in Austria
According to the Orlando Sentinel, Sholam Weiss was returned to an Austrian jail last month after his bond was revoked. Apparently, U.S. and Austrian authorities determined that the $1.6 million Weiss posted as bail in October 2001 was actually some of the tainted money stolen from National Heritage Life.
Weiss, who fled the United States in 1999 at the end of his nine-month trial for stealing $125 million from National Heritage Life, was convicted in absentia to an unprecedented 845-year prison term. When he was captured a year later in Austria, he successfully fought extradition based upon the United States's position that Weiss waived his right to appeal the federal criminal conviction after he became a fugitive from justice at the close of his trial. With no opportunity to overturn his conviction, Austrian authorities refused to return him to the United States and indicated they would re-try Weiss in Austria, where the maximum sentence would be 10 years.
Task Force Chair - Dan Orth; Staff Contact -Conflicts Surveys and Antitrust Certifications Due April 15
NOLHGA's Conflicts Policy and Annual Questionnaire were mailed on March 6 to all NOLHGA personnel and representatives, including NOLHGA's Board members, committee and task force members, and consultants. The questionnaire must be completed on an annual basis by all persons subject to NOLHGA's Conflicts Policy. This year's questionnaire covers activities occurring from January 1, 2001, through the date of the response.
In addition, NOLHGA's Antitrust Policy, Implementation Guidelines, and Annual Certification Forms were simultaneously sent to all NOLHGA personnel and representatives referenced above and to all NOLHGA members. As is the case with NOLHGA's Conflicts Policy, the Antitrust Policy requires an acknowledgment of receipt and an annual certification of compliance.
Please review these materials and return the completed conflicts questionnaire and antitrust certification to Aimee Frye at NOLHGA by mail or fax (703.481.5209) no later than April 15. These forms should only take a few minutes to complete, and your timely response is very important. Your assistance in this matter is greatly appreciated.
Staff Contact -2001 Guaranty Association Assessment Information Due May 1
The 2001 version of the annual request to collect assessment information has been sent to all guaranty associations via e-mail. As in past years, each state guaranty association is to report assessments made, assessments called, and refund information by insolvency and by account. The e-mail message sent to the associations contains two files: (1) a Word document explaining details of the request, and (2) an Excel spreadsheet that lists all known insolvencies since 1988. Simply enter your state's assessment information for a particular insolvency on the spreadsheet. Responses should be returned to Candace Jennings at NOLHGA via e-mail ([email protected]) or fax (703.481.5209). Please contact Paul Peterson (703.787.4119) if you encounter any difficulties with either file. Responses are due no later than May 1.
Staff Contact - Paul PetersonNew GA Contact Info
Ray Terfera and Bill Fisher of the Massachusetts Life and Health Insurance Guaranty Association have a new fax number: 413.744.6114.
Also, the new e-mail address for Hiram Tanaka of the Hawaii Life and Disability Insurance Guaranty Association is [email protected].
Staff Contact -