May 3, 2002 First National Life Insurance Company (Ala.)

Early Access Distribution Approved

The Receivership Court issued an order authorizing the receiver to distribute $2.4 million in early access funds to the guaranty associations. This amount represents a 100 percent recovery of the guaranty associations' policy-level payments and a 79 percent recovery of the related administrative expenses.

The receiver has indicated that funds will be wired to NOLHGA within a matter of days. Once the funds are received, NOLHGA will distribute them to the guaranty associations.

Task Force Chair - Mike Marchman;   Staff Contact - Joni Forsythe National American Life Insurance of Pennsylvania (Pa.)

Distribution Scheduled in May

NOLHGA has been told by the receiver to anticipate receiving $8.6 million in early access distributions sometime in May. This amount represents a $1.1 million reimbursement of administrative expenses and $7.5 million for policy-level payments. With this distribution, approximately 83 percent of covered obligations will have been recovered by the guaranty associations.

In addition, $1.4 million will be disbursed to Acacia for credit to uncovered obligations assumed by Acacia.

Task Force Chair - Tad Rhodes;   Staff Contact - Paul Peterson

May MPC Meeting Briefing Book Available Next Week

The complete briefing materials for the next MPC meeting, which will be held May 20-22, 2002, at the Hilton Columbus in Columbus, Ohio, will be posted on the meeting Web page early next week.

The briefing materials include revised meeting and agenda schedules (which will also be posted as a separate file) as well as an attendee list and status reports for the upcoming meeting; materials relating to Jack Falkenbach’s (Del.) "Asset Recovery Project Report," which will be presented at the MPC general session, will also be included.

The briefing book is available in PDF format; users will need Adobe Acrobat Reader to view and print the materials. Acrobat Reader is available free from Adobe; a link to the Adobe site can be found in the "Site Help" section on the NOLHGA Web site homepage, or users can go directly to the Adobe site using this link.

Registered attendees will receive an e-mail informing them when the briefing materials are posted. Please contact Sean McKenna at 703.787.4106 or [email protected] or Karen Early at 703.787.4101 or [email protected] if you have any questions.

  Staff Contact - Sean McKenna

New GA Contact Info

Charles Renn of the Missouri Life and Health Insurance Guaranty Association and the Missouri Property and Casualty Insurance Guaranty Association has a new e-mail address: [email protected]. His previous e-mail address will stop working at the end of May.

Also, the office of the Montana Life and Health Insurance Guaranty Association has a new fax number: 262.965.5200.

  Staff Contact -