Centennial Life Insurance Company (Kans.)
Centennial Estate Makes Distribution
During the week of November 2, NOLHGA distributed $7.7 million to the 49 guaranty associations affected by the Centennial Life insolvency. Of the total distribution, $900,000 is for Class 1 expenses, representing payment in full of the guaranty associations' administrative costs through December 31, 2002. The remaining $6.8 million is for Class 3 policyholder-level expenses, representing reimbursement to the guaranty associations of 97 percent of the amount paid in claims.
As reported at the August MPC meeting, this distribution was made after the successful conclusion of virtually all of the estate's litigation and asset recovery efforts. Although not technically a final distribution, there are few assets left in the estate and guaranty associations should not expect further distributions.
The receiver will now turn his attention to handling clean-up matters, and a final estate closing should occur within the next 12 to 18 months. The receiver, Dan Watkins, should be commended for a fine outcome in this liquidation. His cooperation with the guaranty associations was greatly appreciated.
Task Force Chair - Mark Femal; Staff Contact - Diamond Benefits Life Insurance Company (Ariz.)/Life Assurance Company of Pennsylvania (Pa.)NOLHGA Receives Final Distribution from LACOP Estate
In April 2003, a court order was issued approving a final distribution plan for LACOP, closure of the estate, and discharge of the receiver. On October 31, NOLHGA received a final estate distribution from the LACOP estate in the amount of $3,108,998. This distribution is the result of the guaranty associations' subrogation claims against the estate as defined in the DBL Participation Agreement. The funds should be disbursed to the guaranty associations during the week of November 9.
Staff Contact - Paul Peterson Legion/Villanova Life Insurance Companies (Pa.)Stop-Loss Funding Due Soon
Stop-loss funding schedules will be sent to Arizona, Georgia, Michigan, Virginia, and Wisconsin on November 7 or November 10, 2003. The schedules should cover all outstanding stop-loss claims that are covered by the guaranty associations; no future requests are anticipated. Total funding due is approximately $1.8 million. Associations should remit funds to NOLHGA, which in turn will remit the funds to Legion (payment instructions will be enclosed with the schedules). Receipt of funds as soon as possible would be greatly appreciated.
Task Force Chair — Peter Leonard; Staff Contact - Paul Peterson National Affiliated Investors Life Insurance Company (La.)Court Again Denies Stop-Loss Claims
On October 21, 2003, the Ninth Judicial District Court issued an order denying the opposition to the disallowance of the stop-loss claimants and thus denying their claims in the NAIL liquidation. To review, a small block of stop-loss claimants had filed for policy-level claim status in the estate; however, the company was unable to locate any evidence of the policies ever being issued. Therefore, policy-level claim status had been denied by the receiver. This order should dispose of the stop-loss claims, unless the order is successfully appealed. The appeal period is effectively 60 days. NOLHGA staff and task force counsel will continue to monitor the case.
Task Force Chair - Chuck Gullickson; Staff Contact - Paul Peterson Universe Life Insurance Company (Idaho)Trust Claim Denied
On July 30, 2003, the Ada County, Idaho, District Court entered a Memorandum Decision and Order in the Universe Life Insurance insolvency affirming the liquidator's denial of the Grain Growers Membership & Insurance Trust's claim for certain benefits for Montana certificate holders. This decision is consistent with the court's prior denial of other claims made by the Grain Growers Membership & Insurance Trust and other similarly situated trusts. This order, unless it is appealed, should resolve the major claim disputes.
Task Force Chair - Tad Rhodes; Staff Contact - Paul Peterson2002 Assessable Premium Data Released
The 2002 assessable premium data packages were mailed to guaranty associations and insurance commissioners on October 31, 2003. All information is now contained on a CD-ROM database developed by PricewaterhouseCoopers (PwC), as opposed to the hard-copy versions available in past years. The package still includes an overview of the assessment data survey process, testing completed on companies' filings, etc. (all in PDF format), as well as state-specific licensed and unlicensed data disks. The CD-ROM also contains various lookup functions to review companies' data survey filings or summary-level reports. It is important that the directions provided by PwC be followed when loading the data on your computer. Should you encounter any problems, please contact PwC at 703.918.3959.
Review of the data by guaranty associations is an important step in the process. Please contact Paul Peterson ([email protected] or 703.787.4119) should you have any questions or discover any errors in the data. In addition, we would greatly appreciate any comments or suggestions on ways to improve the CD-ROM functions, as this will be the format for data delivery in future years (hard-copy prints will no longer be provided).
Staff Contact - Paul PetersonOnline Evaluations for MPC Meeting & Annual Meeting Now Available
Online evaluation forms for NOLHGA's 20th Annual Meeting and the MPC meeting that preceded it are now available. Attendees who did not fill out an evaluation form for one or both meetings while in Dallas are encouraged to take a moment to click on the link or links below and evaluate the meeting(s) you attended. The information acquired through these evaluation forms is used to plan future meetings, so your feedback is very important.
Staff Contact - Sean McKenna