American Chambers Life Insurance Company (Ohio)

GA Expenses Requested

The ACLIC Task Force has requested that NOLHGA collect inception-through-December 31, 2002, financial information as it relates to claims and expenses paid in connection with the insolvency of American Chambers. This week, affected guaranty associations received a memorandum by e-mail requesting that claims and expense data be submitted to NOLHGA via the NOLHGA Web site's proof of claims system by June 28, 2003. To ease the burden on the guaranty associations, the memorandum was supplemented with exhibits outlining "known" expenses incurred in connection with Antares's claims handling, the Madison National assumption of life policies, and cumulative NOLHGA quarterly MPC insolvency expenses. These amounts should not be reported via the NOLHGA Web site proof of claims system, but instead confirmed by fax to NOLHGA on the form included with the memorandum. If there are any questions, please contact Meg Melusen (703.787.4130; [email protected]) or Gus Estrada (703.787.4131; [email protected]).

Task Force Chair - Chuck Gullickson;   Staff Contact -

Supreme Court Denies Appeal of Federal Preemption Case

On May 19, 2003, the United States Supreme Court denied the Petition for Writ of Certiorari filed by the Massachusetts receiver for American Mutual Liability Insurance Company and American Mutual Insurance Company of Boston. The petition sought review of a September 2002 decision issued by the First Circuit Court of Appeals finding that the statutory bar date for filing claims in insurance company insolvencies under Massachusetts law does not apply to claims of the federal government. The receiver's petition for Supreme Court review was supported by amicus briefs submitted by NOLHGA and the NAIC.

In the September 2002 decision, the First Circuit also held that guaranty association claim priority is part of an integrated system aimed at the protection of policyholders and is therefore shielded from federal preemption under the McCarran-Ferguson Act in accordance with the standards set forth by the Supreme Court in Fabe. The government did not seek further appeal of that issue.

For further information, contact Joni Forsythe at 703.787.4103.

  Staff Contact - Joni Forsythe

First-Quarter Assessments & 2002 Financial Statements to Mail Next Week

During the week of June 1, 2003, state guaranty associations will receive a package containing the NOLHGA 2003 first-quarter assessments for MPC and other task force-related expenses and a copy of NOLHGA's 2002 audited financial statements. Please contact Gus Estrada at 703.787.4131 or [email protected] if you have any questions about the mailing.

  Staff Contact -