MPC Meets in Providence

The following are summaries of task force insolvency reports presented during the Members’ Participation Council meeting held May 10-11 in Providence, Rhode Island. The Executive Life Task Force met in closed session.

  Staff Contact - Sean McKenna American Chambers Life (OH)

Claims Subgroup Chair Mark Femal brought attendees up to date on the status of the claims processing issues. Femal noted that Antares would cease monthly audits of claims accuracy due to the drastically reduced volume of claims. The Task Force also agreed to lower its requirement for collection of subrogated claims. Femal also noted that Antares would continue to work on repricing certain claims incurred under PPO contracts.

Task Force Legal Counsel Charlie Richardson discussed the status of asset recovery efforts, including the filing by NOLHGA of an Omnibus Proof of Claim with the Liquidator. The Task Force and the MPC also approved a resolution allowing affected states to enter into a common interest agreement with the Liquidator.

Task Force Chair –Chuck Gullickson;   Staff Contact - Bankers Commercial Life (TX)

Meeting in a roundtable session, Task Force Staff Contact Paul Peterson apprised attendees that all post-March 2000 box claims have been processed. Peterson explained that response to letters sent to providers requesting information on potentially unpaid claims has been minimal. The Task Force elected to 1) allow processing of those claims in response to policyholder calls, and 2) send follow-up letters to policyholders with a 60-day response period. The Task Force also approved a continuation of the suspension of claims filing deadlines for the small and decreasing numbers of old claims.

The Task Force discussed the likelihood of gaining approval for rate increases on Medicare Supplement plans in certain states. The Task Force intends to issue a request for proposals to companies wishing to purchase the business 60 days after policyholders receive notice of a rate increase. Peterson noted that no policies have reached coverage limits.

Task Force Chair –William Falck;   Staff Contact - Paul Peterson Kentucky Central Life (KY)

Task Force Chair John Colpean brought attendees up to date on the status of the insolvency. Task Force accountant Gary Stephani noted that the Liquidator reported the estate had $99 million of assets in the last report filed with the Court. Stephani estimated that a substantial amount would be available for distribution to policyholder priority claimants, including guaranty associations.

Task Force Chair –John Colpean;   Staff Contact - Joni Forsythe National Heritage Life (DE)

Task Force Chair Dan Orth reported that after a 90-day wind-down period, the NHL Trust was closed as of April 22,2001. Over its life, the Trust distributed approximately $223 million. At the closure of the Trust, approximately $5 million in assets were returned to the receiver. The Task Force will continue to monitor the disposal of estate assets, as well as the progress of the estate’s 3rd party litigation efforts toward asset recovery.

Task Force Chair –Dan Orth;   Staff Contact - Statesman National Life (TX)

Task Force Chair Neil Rucksdashel told attendees that affected states can expect a distribution in the near future. The Task Force is continuing its monitoring of the profit sharing agreement, and Rucksdashel believes that there would be additional monies available to GAs after the end of the look-back period.

Task Force Chair –Neil Rucksdashel;   Staff Contact - Thunor Trust

Task Force Chair John Colpean brought attendees up to date on the status of the Thunor insolvency. Legal Counsel Charlie Richardson told attendees that an Early Access Agreement with the Mississippi Receiver. The MPC approved a resolution authorizing the Task Force to enter into the Early Access Agreement, with a 30-day opt-out period.

Future activities of the Task Force will focus on asset recovery issues.

Task Force Chair –John Colpean;   Staff Contact -