American Integrity Insurance Company (PA)
Receiver Wires $1.9 Million Early Access Distribution
The receiver on May 4 sent a $1,923,812 early access distribution to NOLHGA for the benefit of the affected guaranty associations. The money will be distributed shortly.
Task Force Chair -- John Colpean; Staff Contact - Executive Life Insurance Company (CA)Bullet Payments Due June 3 For Participating Guaranty Associations
June 3 prior to noon is the due date and time for the Executive Life bullet payment. Aurora National Life Assurance Company sent billing for the payment the week of March 16 to administrators of the participating guaranty associations. The total amount due is $862,814,602. Arthur Andersen has reviewed the calculations and will provide a written report to the associations the week of May 11.
Task Force Chair -- Art Dummer; Staff Contact - Centennial Life Insurance Company (KS)THE CENTENNIAL LIFE TASK Force met May 7 at NOLHGA's offices in Herndon, Va., to hear reports from the working group and to discuss proposals under which affected guaranty associations would fund claim payments to long-term disability and medical insurance claimants if Centennial Life Insurance Company is found insolvent and ordered liquidated. The rehabilitator on April 21 filed a petition for the liquidation of Centennial. A hearing on the petition will be held May 27 at 2 pm at the Shawnee County District Court.
Because of Centennial's financial condition, the company has ceased paying claims until further order of the court. The task force and the rehabilitator have been working to develop procedures for the payment of covered claims should the court issue an order of liquidation.
Centennial last issued checks for disability claims in April. Claims for May will be presented to the guaranty associations following an order of liquidation. Under the procedures the task force will recommend to the Members' Participation Council at its June meeting in Portland, Maine, and dependent upon the results of a claims audit, the receiver will adjudicate medical and long-term disability claims and send lists of approved claims to the guaranty associations. The associations then would review the lists and wire funds to a segregated bank account. Dollar amounts of medical claims are not yet available. Details of the proposal will be mailed to the associations the week of May 11.
Task Force Chair -- Mark Femal; Staff Contact - Fidelity Mutual Life Insurance Company (PA)NOLHGA, ON BEHALF OF its member life and health insurance guaranty associations, on May 1 filed an objection to the rehabilitator's petition to settle certain unsecured claims. The receiver's petition excludes the guaranty associations' $5 million in unpaid assessments. In its objection, filed in the Commonwealth Court of Pennsylvania, NOLHGA stated that the rehabilitator's proposal to begin paying selected, unsecured creditors before a comprehensive plan of rehabilitation had been proposed and approved was inequitable. The objection further stated that "paying certain creditors preferentially and in a piecemeal manner, the rehabilitator's proposal deprives all creditors of the opportunity to make informed judgment about their proposed treatment." Finally, the objection concluded that by the time a plan of rehabilitation is proposed, Fidelity Mutual's financial situation may have altered substantially, thereby breaching principles of priority and parity.
Task Force Chair -- Frank Gartland; Staff Contact -MPC Schedule
Monday, June 1 NOLHGA Office All day, Whaleback Room Accounting Issues Committee Noon - 4 pm, Monhegan Room Confederation Life Task Force 4 - 5 pm, Winter Harbor Room Tuesday, June 2 NOLHGA Office All day, Whaleback Room American Standard Task Force 8 - 9 am, Winter Harbor Room Kentucky Central Task Force 9 - 10 am, Monhegan Room Brian Donnelly/New England Administrators 10 - 11 am, Breakwater Room Members' Participation Council 11 am - 6 pm, Ballroom A MPC Executive Committee(meeting as part of the Council meeting) 1:25 - 3:25 pm, Ballroom A Reception/Dinner 6 - 8 pm, Sebago Wednesday, June 3 Full Buffet Breakfast 7:30 - 8 am, Ballroom A Task Force Meetings(as part of the Council meeting) Centennial Life Task Force 8 - 9 am, Ballroom A Executive Life Task Force 9:15 - 11:15 am, Ballroom A Members' Participation Council 11:15 - noon, Ballroom A
Staff Contact - Sean McKennaCALENDAR
May 10 Deadline for June MPC hotel reservations May 11 Deadline to opt out of FEC Litigation Trust distribution May 12 Joint NOLHGA/NCIGF Legal Committee, St. Louis May 13 NOLHGA Legal Committee, St. Louis May 14-15 Protocols Working Group, Chicago
Staff Contact - Sean McKenna