Executive Life Insurance Company (California)
Defeasance Deadline Approaches
For guaranty associations that have decided to defease Executive Life payment obligations this year, the deadline for payment is May 30, 2013. Based on information collected by NOLHGA, 17 states plan to defease this year (in addition to the 21 participating guaranty associations (PGAs) that previously defeased).
Pursuant to the Enhancement Agreement, Aurora distributed a defeasance calculation on March 1 for the benefit of all PGAs that requested it by year-end 2012. On May 8, reports on the detailed review by Navigant Consulting and G.P. Monnin and Co. were distributed to the PGAs along with instructions for payment. The payment schedule reflects a net decrease in the gross defeasance amount of $643,000, which resulted from various adjustments to the calculations presented in the original schedule.
Please contact Bill O’Sullivan ([email protected]) or Meg Melusen ([email protected]) if you have any questions.
Task Force Chair - Art Dummer; Staff Contact - Bill O'Sullivan Lumbermens Mutual Casualty Company (Illinois)Order of Liquidation Filed
An Order of Liquidation with a Finding of Insolvency was issued against Lumbermens on May 8, 2013. The Receivership Court also issued Orders of Liquidation against Lumbermens’s affiliates, American Manufacturers Mutual Company and American Motorists Insurance Company, and approved the substantive consolidation of the liabilities and assets of the three insurers. The Lumbermens Order of Liquidation will be effective on May 10, 2013.
The task force will soon provide all participating guaranty associations with the final funding request and the opt-out package for the Assumption Reinsurance Agreement with Madison National. As a reminder, the opt-out period for the American Progressive Reinsurance Election, Swiss Re Reinsurance Election, Letter Agreement for Interim Administration, and DIS Service Agreement ends on May 15 at 5:00 p.m. Eastern time. Guaranty association funding for the assumption reinsurance transaction and the cost of paying benefits between liquidation and closing of the assumption reinsurance transaction is due to NOLHGA by May 20.
Task Force Chair - Mike Marchman; Staff Contact - Paul Peterson