American Chambers Life (OH)
Liquidation Order Issued
The Court of Common Pleas, Franklin County Ohio, Civil Division on May 8 issued a liquidation order for American Chambers Life, and appointed Ohio Director of Insurance J. Lee Covington as Liquidator and James M. Young as Chief Deputy Liquidator. The court on May 8 also approved the Rehabilitator's reinsurance plan and several agreements, including:
- the Indemnity Reinsurance Agreement between American Chambers and Continental General Insurance Company;
- the Information System Services and Administrative Agreement among the American Chambers Rehabilitator, United Chambers Administrators, Inc., Medical Mutual of Ohio and Antares Management Solutions, LLC;
- the Service Agreement among NOLHGA, the participating guaranty associations, the American Chambers Rehabilitator or Liquidator, Antares Management Solutions, LLC and Medical Mutual of Ohio; and
- the Assignment of Agreement between the American Chambers Rehabilitator and Antares Management Solutions, LLC.
Under the Indemnity Reinsurance Agreement, effective May 1, 2000, Continental General reinsured all:
1. individual association and small group health insurance coverages (including the related life insurance) issued by American Chambers from and after January 1, 2000, and
2. all individual association health insurance coverages (including the related life insurance) issued by American Chambers through December 31, 1999 under certain policy forms in certain states.
Through May 11, six affected guaranty associations have become Participating Guaranty Associations in the Antares Service Agreement. No guaranty associations have opted out.
Task Force Chair - Chuck Gullickson; Staff Contact - National Heritage Life (DE)Trust Report
On May 2, the NHL Trustees held their regularly scheduled meeting to review the Trusts' year-end audit and financial statements. Attending on behalf of the NHL Task Force were Dan Orth (IL), task force chair; Jack Falkenbach (DE); William Falck (FL); Frank O'Loughlin, task force counsel; David Wilson, project manager; and Dana Woodward, NOLHGA staff. Remaining in the trust are approximately 343 residential and commercial mortgages. As of March 31, the Trust has disposed of 720 assets which appreciated by approximately $32.5 million from the value assigned to them at the inception of the trust. The Trustees report they expect to make another distribution from the Trust of approximately $17 million.
Task Force Chair - Dan Orth; Staff Contact - Kentucky Central Life (KY)Expense Data Due
NOLHGA is in the process of preparing to submit expense data through first quarter 2000 to the KCL estate. Reporting forms for first quarter 2000 were faxed to all affected guaranty associations during the first week of April, with a return date of Monday, May 15th. Please return that data to NOLHGA by next week. NOLHGA will provide a duplicate reporting form upon request. States that have not yet submitted expense data for year-end 1999 are asked to submit that information at this time so that the information can be included in the expense submission. Expense information should be addressed to NOLHGA, Attention Karen Early, 13873 Park Center Road, Suite 329, Herndon, VA 20171. Data may be sent by fax to 703.481.5209.
Task Force Chair - John Colpean; Staff Contact - Joni Forsythe Old Colony Life (GA)Expense Reports Requested
The Receiver has requested that NOLHGA obtain updated expense reports from affected guaranty associations, consolidate them, and file a final report, so that the Receiver can close the estate and make a final distribution. NOLHGA will send to affected GAs the week of May 22 forms for reporting administrative expenses from inception thorough March 31, 2000.
Task Force Chair - Luther Hill; Staff Contact - Executive Life (CA)Unisys Files Suit Against Mississippi GA
On May 11th, the Mississippi Guaranty Association was served with a lawsuit filed by Unisys Corporation in the Hinds County Circuit Court in Mississippi. The complaint does not claim a sum certain in damages, but seeks coverage for resident participants in Unisys retirement plans that had invested in ELIC GICs. A response by the guaranty association is due next month.
Task Force Chair - Art Dummer; Staff Contact -Wall Street Journal Reporter to Address Legal Seminar
The Planning Committee for NOLHGA's Legal Seminar 2000 has secured Ellen Pollock, a senior special writer for the Wall Street Journal, as the featured luncheon speaker for Thursday, July 20th. Ms. Pollock has been with the Wall Street Journal for ten years, and now writes primarily for Page 1. Last year, she reported on the Thunor Trust and Martin Frankel. Pollock is currently working on a book about Martin Frankel which will be published by Simon & Schuster/Wall Street Journal Books.
Staff Contact -CALENDAR/CONFERENCE CALLS
May 17-19 Members' Participation Council Meeting, Minneapolis, MN
July 20-21 NOLHGA Legal Seminar, Boston, MA