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Executive Life Insurance Company (CA)

Judge Approves Indemnity Settlement With Aurora

Los Angeles Superior Court Judge Kurt Lewin on March 26 signed a confirmation order approving the agreement, signed previously by the California insurance commissioner and Aurora National Life Assurance Company, which settles outstanding tax indemnity issues. The settlement was unopposed.

Task Force Chair -- Art Dummer; Staff Contact - Kentucky Central Life Insurance Company (KY)

Guaranty Account Value Systems Not Year 2000 Compliant

Jefferson-Pilot Life Insurance Company notified NOLHGA on March 12 that the Kentucky Central systems used to support the administration of guaranty account values are not "Year 2000" compliant. Steps must be taken to repair these systems, since the plan requires that the guaranty account values be maintained through May 31, 2000. The task force is evaluating a cost-sharing proposal from Jefferson-Pilot and expects to meet soon with representatives from the company and the Kentucky Central liquidator to adopt a solution.

Task Force Chair -- John Colpean; Staff Contact - Joni Forsythe First National Life Insurance Company (AL)

THE RECEIVER HAS identified approximately $90,000 worth of additional Medicare Supplement claims. NOLHGA notified affected guaranty associations on March 19 regarding options for paying these claims. In addition, final processing of Medicare claims funded by guaranty associations in November resulted in net adjustments of $8,000. NOLHGA sent true-up notices on March 18 to affected associations.

Task Force Chair -- Mike Marchman; Staff Contact - Joni Forsythe Guaranty Reassurance Corporation (FL)

GUARANTY REASSURANCE CORPORATION and Midland National Life Insurance Company during the week of March 23 completed the final true-up on the Oct. 31 assumption reinsurance agreement under which Midland assumed all but 300 of GRC's life and annuity policies. GRC retained the policies to ensure qualification as a life insurance company for 1998 tax purposes. Dave Wenzel, a tax accountant, is the only remaining GRC staffer effective March 30.

Task Force Chair -- Frank Gartland; Staff Contact - Bill O'Sullivan

ETC.

New Assumption Reinsurance Agreement Forms
The second edition of the NOLHGA Form Assumption Reinsurance Agreement and comments to the form are available for immediate use by task forces in future assumption transactions. The revised form and comments recently were approved by NOLHGA's Legal Committee and are products of a Legal Committee subcommittee chaired by Charlie Richardson of Baker & Daniels. Guaranty associations interested in receiving a copy are asked to call Bill O'Sullivan at NOLHGA.

Recipients should note that the comments contain confidential and sensitive information intended to assist task force chairs in negotiating assumption transactions. Consequently, distribution of the comments should be limited to guaranty association administrators and their counsel, task force chairs and their consultants, and NOLHGA staff and counsel.
Contact -- Bill O'Sullivan 703/787-4104

Happy Anniversary!
Holly L. Wilding, NOLHGA's vice president, administrative services, celebrates her 10th anniversary at NOLHGA on March 28. She has outlasted every NOLHGA employee since the organization's inception in 1983! Ms. Wilding also serves as assistant secretary to the NOLHGA Board of Directors.

Staff Contact - Sean McKenna

CALENDAR

March 30 Kentucky Central Asset Working Group, New York City March 31 Emerging Issues Committee, Herndon, Va. April 22 Kentucky Central Asset Management Committee, Lexington, Ky. April 23 NOLHGA Board of Directors, 8 am CDT, Milwaukee April 23-24 NCIGF Annual Meeting, Washington, D.C. April 30 Seventh ELIC installment payment due