November 4, 2021

MPC Meets Online in October

The Members’ Participation Council (MPC) conducted an online meeting on October 25, 2021. In addition to the task force reports below, the MPC General Session featured a Legal Committee report on ancillary receiverships by Moderator Tad Rhodes (Colorado and Oklahoma), John Colpean (Michigan), Kevin Griffith (Faegre Drinker), and Rowe Snider (Locke Lord LLP). NOLHGA President Peter Gallanis provided the President’s Report, and MPC Chair Tom Sullivan provided the MPC Chair Report.

In his report, Mr. Sullivan briefed attendees on MPC Executive Committee activity and also noted several retirements and hirings in the guaranty community. Dick Klipstein retired from NOLHGA after 29 years with the organization, and three guaranty association Executive Directors will retire at year-end: Jack Falkenbach is retiring after 28 years with the Delaware association; Tom Peterson is retiring after 25 years with the Kentucky association; and Peggy Parker is retiring after more than 30 years with the Virginia association. Mr. Sullivan also welcomed some of their replacements to the guaranty community: Mike Heard is replacing Dick Klipstein at NOLHGA; Barry Miller will succeed Jack Falkenbach at the Delaware association; and Jana Lee Pruitt will succeed Tom Peterson at the Kentucky association. Mr. Sullivan, who completed his third and final one-year term as MPC Chair, also took a moment to thank everyone for their support during his tenure.

The MPC meeting also featured a meeting of the MPC Executive Committee as well as the annual meetings of GABC and LTC Re. The meeting was conducted the day before NOLHGA’s 2021 Annual Meeting, which featured closed-session (affected guaranty associations only) presentations by the task forces for Penn Treaty Network America/American Network Insurance Companies (Pennsylvania), Global Bankers Insurance Group (North Carolina and Michigan), Time Insurance Company (Wisconsin), and Senior Health Insurance Company of Pennsylvania (SHIP).

  Staff Contact - Sean McKenna Lincoln Memorial/Memorial Service Life Insurance Companies (Texas)

Task Force Chair Tad Rhodes (Colorado and Oklahoma) reviewed the 14-year history of this receivership and updated attendees on the status of litigation against various third parties. A final judgment against PNC Bank (the last remaining litigant) was issued in favor of the plaintiffs in September 2021. The total amount paid by PNC Bank (including post-judgment interest and attorney fees and costs) amounted to more than $111 million. In total, the guaranty associations recovered almost $200 million in litigation recoveries from various defendants (including PNC Bank). The task force still hopes to move the MTW block of policies in an assumption transaction and run off the remaining policies.

Task Force Chair - Tad Rhodes;   Staff Contact - Paul Peterson North Carolina Mutual Life Insurance Company (North Carolina)

Task Force Chair Peggy Parker (Virginia), Legal Counsel Joel Glover (Faegre Drinker), and Task Force Staff Contact Paul Peterson updated attendees on the status of the company. A petition for liquidation was filed on September 24, 2021, and the task force has early access and service agreements in place should a liquidation order be issued. The task force is currently assessing blocks of business for potential assumption agreements and is also analyzing a block of federal employee group life insurance (FEGLI) policies held by the company.

Task Force Chair - Peggy Parker;   Staff Contact - Paul Peterson

New Hampshire GA Moves to New Office

The New Hampshire Life & Health Insurance Guaranty Association has relocated. The new address is:

New Hampshire Life & Health Insurance Guaranty Association
12 Brick Mill Road, Unit A
Bedford, NH 03110

The association’s phone number and email address remain the same.

  Staff Contact - Sean McKenna