Thunor Trust Companies
Assumption Hearings Set; Opt Out Packages Sent
Petitions for approval of the assumption reinsurance agreements with Madison National for the business of the three Mississippi companies: Family Guaranty Life; Franklin Protective Life; and First National Life of America were filed in the Chancery Court of Hinds County, Mississippi October 28. Hearings on the petitions are scheduled for November 10.
Opt out packages for the assumption reinsurance agreements under which Madison National Life will assume the business of Family Guaranty Life, Franklin Protective Life, First National Life of America and International Financial Services Life (MO) were sent to all affected guaranty associations for receipt on November 2. The opt out date for all four agreements is November 22. All four agreements are expected to close in mid-December. The affected guaranty associations are expected to fund approximately $111 million in cash and notes at closing.
The Chancery Court of Davidson County, Tennessee, issued a Consent Final Order of Liquidation, Finding of Insolvency and Permanent Injunction regarding Franklin American Life October 26. The task force sent requests for proposals for the business of Franklin American Life to 10 companies. Proposals are due November 8.
Task Force Chair - Chuck LaShelle; Staff Contact - Unison Life (OK)Final Distribution Agreement
On November 3, the Estate Closing and Final Distribution Agreement was distributed to affected guaranty associations for their participation. The agreement permits the Bonneville Life Insurance Company estate to close in the immediate future and, if possible, to permit the Unison estate to close within the next 18 months. Under the terms of the agreement, participating guaranty associations would receive an aggregate early access distribution of approximately $400,000. December 3 is the opt-out deadline.
Task Force Chair - Bart Boles; Staff Contact - Bill O'Sullivan National Heritage Life (DE)Guilty Verdicts
The Orlando Sentinel, on November 3, reported that a federal jury convicted Sholam Weiss and Keith Pound on all counts related to their roles in the National Heritage insolvency. Jan Schneiderman and Jan Starr were also found guilty on a number of charges. Additionally, the jury found that the defendants should forfeit millions of dollars worth of property and assets bought with National Heritage funds. Weiss, who faces a life sentence, is the subject of an FBI manhunt after he disappeared on October 17. A fifth defendant, Richard Herman, was acquitted.
Attorneys for both Schneiderman and Weiss have said that they plan to appeal the verdict; Weiss will lose his right to an appeal if he does not return by February.
Task Force Chair - Dan Orth; Staff Contact - Confederation Life (MI)Expense Submissions Due
As a reminder, third quarter expense submissions are due no later than November 17. Submissions should be faxed, along with executed certification, to Paul Peterson at NOLHGA at 703.481.5209. Final summaries will be sent to the Confederation liquidator on November 19 so that reimbursements can be made prior to year-end.
Task Force Chair - Chuck LaShelle; Staff Contact - Statesman National Life (TX)Expense Data Requested
The Statesman National Special Deputy Receiver has requested that expense data from NOLHGA and the affected guaranty associations be filed by November 15. Reporting forms for cumulative expenses through September 30, 1999 were sent to all 31 affected guaranty associations November 4. NOLHGA quarterly insolvency assessments should not be included, because they will be reported in total. Please return your expense reporting form by Nov. 10 (even if the response is "NONE") to:
NOLHGA
Attn: Kristen Howell
13873 Park Center Road, Suite 329
Herndon, VA 20171
FAX: (703) 481-5209
E-mail: [email protected]
Insolvency Cost Reports
The annual report summarizing insolvency costs will be mailed to approximately 2,200 insurance companies, guaranty associations and insurance commissioners within the next two weeks. The report is a summary of insolvency costs and assessable premium information and is produced as an aid to industry members as they establish accruals for potential life, health, and annuity assessments pursuant to generally accepted accounting principals (see AICPA Statement of Position 97-3 - Accounting by Insurance and Other Enterprises for Insurance Related Assessments) and statutory codification practices (see NAIC Issue Paper No. 35 - Accounting for Guaranty Fund and Other Assessments).
The two-volume Insolvency Financial Reports that contain more detailed background and state-level information will be mailed in late November/early December. Distribution of this report is limited to guaranty association board chairs and administrators and the NOLHGA board. It is not available to industry members.
Staff Contact - Paul PetersonETC.
New Texas Association Phone Number
The new phone number for the Texas guaranty association is 512.481.3000. The fax number remains the same.
Staff Contact - Sean McKennaCALENDAR/CONFERENCE CALLS
November 9: Legal Committee Meeting, Herndon,VA
November 10: American Western Life Working Group Teleconference
November 12: Centennial Task Force Teleconference
November 16: Centennial Task Force Meeting, Location TBA
November 17: Investment Life of America Working Group Teleconference
Staff Contact - Sean McKenna