American Standard Life (OK)
Early Access Funds Released
On October 27, the Oklahoma District Court held a hearing on the receiver's motion to require David Nicholas, ASL's former owner, to post a bond in connection with his appeal of the court's order approving an early access agreement between ASL and participating guaranty associations (PGAs). At the conclusion of the hearing, the court ordered Nicholas to post a bond of $8.6 million. In addition, the court reconfirmed its order requiring the receiver to make a distribution to PGAs in accordance with the terms of the early access agreement.
Pursuant to the court order, the receiver distributed approximately $8.6 million in early access funds to NOLHGA on October 30. NOLHGA will, in the near term, distribute the funds in accordance with the early access agreement and the settlement agreement with LACOP/PA.
Task Force Chair -Andrea Bowers; Staff Contact - Bill O'Sullivan Kentucky Central Life (KY)Final Distribution of Shadow Account Funds Delayed
NOLHGA now plans to distribute all funds held by NOLHGA for the benefit of the 50 affected guaranty associations by November 30. The distribution had originally been scheduled for October 31, but has been delayed pending completion of the final audit of the transactions over the five-year plan period. The draft audit report revealed no material errors, but a few items remain to be completed that could affect the allocation among guaranty associations. The total distribution will be about $17 million.
The distribution consists primarily of the excess of policy loan support repayments from Jefferson-Pilot over true-up amounts from the guaranty associations, plus the outstanding balances in the Federated Money Market funds.
Task Force Chair -John Colpean; Staff Contact - Joni Forsythe American Chambers Life (OH)Medical Claims Batch 10
Late this week, Antares Management Solutions sent to affected guaranty associations batch 10 of American Chambers medical claims. Batch 10 includes 11,500 checks and 6,300 no-pay EOBs. The total amount of claims is $2.7 million. If you do not receive your billing by November 7, please contact Bill Howard.
Task Force Chair -Chuck Gullickson; Staff Contact -Litigation Update Reminder
NOLHGA periodically publishes a Litigation Update which provides its members with a summary of GA coverage litigation, as well as other significant litigation involving GAs. The Update was last published on May 31, 2000, and will be published again in November. To ensure that the Update is as complete as possible, all members should notify NOLHGA of any new litigation that their GA has become involved with since May, as well as any significant developments in pre-existing cases. Respondents are encouraged to include information regarding any GA litigation that would be of general interest to the membership. If there is nothing new to report, please so advise.
Responses should be submitted by November 13, 2000 in order to be included in the next Litigation Update. Please direct responses to the attention of Joni Forsythe, fax 703.481.5209 or e-mail to [email protected]
Staff Contact - Joni ForsytheNovember 14- 15 MPC SCHEDULE OF EVENTS
La Mansion del Rio
San Antonio, Texas
Tuesday, November 14 Time Location NOLHGA OFFICE All Day El Conde / La Condesa CENTENNIAL LIFE 1:00pm - 2:00pm Presidio Plaza: Dome Room BANKERS COMMERCIAL LIFE 1:00pm - 2:00pm Presidio Plaza: Riverview Room MPC EXECUTIVE COMMITTEE 2:15pm - 3:00pm Presidio Plaza: Dome Room AMERCIAN CHAMBERS LIFE ROUNDTABLE 3:30pm - 5:30pm Iberian Ballroom East Wednesday, November 15 Time Location NOLHGA OFFICE All Day El Conde / La Condesa EXECUTIVE LIFE ROUNDTABLE 9:00am - 11:00am Iberian Ballroom West MPC LUNCHEON 11:30am - 12:15pm Iberian Ballroom West MPC GENERAL SESSION 12:15pm - 3:00pm Iberian Ballroom West NOTE - The joint NOLHGA, NCIGF, IAIR Seminar will begin at 4:00 pm on November 15.