National Affiliated Investors Life (LA)
Opt-In Packages Mailed
Opt-in packages for the assumption reinsurance agreement with Citizens Security Life/Liberty Life were mailed to affected guaranty associations on May 1. Also included in the mailing were opt-in packages for the early access agreement between the guaranty associations and the National Affiliated Liquidator. Please note that separate participation certificates must be completed for both the assumption reinsurance and early access agreements. The opt-in period ends June 2. Participation certificates are to be mailed to the attention of Paul Peterson at NOLHGA. Closing of the assumption reinsurance agreement is expected to occur in early June.
Task Force Chair - Chuck Gullickson; Staff Contact - Paul Peterson American Chambers Life (OH)Service Agreement Approved
The MPC Executive Committee approved on April 24 a proposed service agreement among NOLHGA, participating guaranty associations and Antares Management Solutions, LLC, an affiliate of Medical Mutual of Ohio. Under the agreement, Antares would process claims and provide other policy services for participating guaranty associations. In addition to the opt-out process, participation is contingent upon the guaranty associations being triggered by a liquidation order for American Chambers. Guaranty Associations on May 2 received copies of the agreement and a summary of the provisions. The 30-day opt out period ends June 1.
Task Force Chair - Chuck Gullickson; Staff Contact - Investment Life of America (NC)Early Access Distribution Expected
The Receiver on recently notified affected guaranty associations that he plans to distribute $3.5 million as early access, upon approval by the liquidation court in Raleigh. The court hearing date is May 22nd, shortly after which the Receiver should send the money.
Task Force Chair - Frank Gartland; Staff Contact - Centennial Life (KS)Claims Processing Continues
Centennial Health Block claims are continuing to diminish, but a significant number of appealed claims have been processed each month during the first quarter of 2000. Here are the latest available summaries:
Batch Number Period Number Amount 29 December 1-31, 1999 269 $133,024 30 January 1-January 31, 2000 314 $127,657 31 February 1-February 29, 2000 443 $169,931 32 March 1-March 31, 2000 349 $136,411
The Receiver has completed processing of appealed claims, except for one each in Hawaii and South Carolina. Of the 1,611 claims that had been appealed and were reconsidered, 1,033 resulted in payment of $1.2 million, 576 resulted in zero payments, and two appeals remain outstanding.
Through March 31, 2000, only six claims have exceeded guaranty association limits, and no state has more than one over limits claim. Aggregate amount of claims greater that GA limits is less than $250,000, and with estate assets expected to be about 80 percent of claims, the uncovered portion would be less than $50,000.
Task Force Chair - Mark Femal; Staff Contact -CALENDAR/CONFERENCE CALLS
May 9 Legal Committee Meeting, Orlando, FL
May 17-19 Members' Participation Council Meeting, Minneapolis, MN
July 20-21 NOLHGA Legal Seminar, Boston, MA