London Pacific Life & Annuity Company (N.C.)
Final True-up Payments Received
NOLHGA has received final true-up payments from Philadelphia American Life Insurance Company (PALIC) and applicable guaranty associations regarding the assumption reinsurance transaction. Funds due guaranty associations (California, Florida, Illinois, Iowa, Nebraska, North Carolina, Pennsylvania, Texas, Virginia, and West Virginia) will be distributed by NOLHGA by November 6, 2007. Please contact Gus Estrada if you do not receive your payment in the near future.
These are the final payments related to the assumption reinsurance transaction with PALIC, other than the accounting for death claims incurred prior to the effective date, which will be finalized within 180 days from closing (around March 31, 2008). The task force expects this to be a minor amount since it will simply represent the difference between the death benefit and the net cash surrender value included in the closing.
Task Force Chair - Frank Gartland; Staff Contact - Paul Peterson States General Life Insurance Company (Tex.)Assumption True-up Completed
The post-closing assumption true-up with New Era has been completed, and NOLHGA has received payment from New Era in the amount of $28,023.62. The task force is now working to finalize the allocation of those funds among affected guaranty associations, net of adjustments for premium refunds owed to the affected associations. Although the net outcome of the true-up resulted in a payment from New Era, individual guaranty association results varied by state depending upon the business held in each state. Accordingly, allocation of the true-up results by state will require that some associations make additional payments while others will receive additional reimbursements.
In addition, NOLHGA is prepared to distribute approximately $304,000 in premium refunds, which have been allocated among the affected states. Amounts owed by any individual association under the true-up will, therefore, be reduced by the amount of premiums they are owed. The task force is preparing an allocation summary that reflects adjustments to account for the premium refunds and will be sending this information out to affected states as soon as it is available.
Task Force Chair - Tad Rhodes; Staff Contact - Joni Forsythe