American Standard Life & Accident Insurance Company (Okla.)
Hearing Scheduled to Approve Plan and Close Estate
The Oklahoma liquidation court has scheduled a hearing for November 25, 2003, to review the receiver's application to approve the final distribution and liquidation plan for American Standard Life (ASL). According to the proposed plan, all Class 1 and Class 2 administrative claims (receiver and guaranty associations) will be paid in full without interest. Policyholder-level claimants (Class 3) will be paid approximately 36.24 percent of the approved claim amounts. The receiver filed the proposed plan with the liquidation court on August 15 with an October 10 deadline for objections. No objections to the liquidator's plan have been filed.
By way of background, ASL was put into liquidation in November 1997 following an extended rehabilitation period. The effective date of the liquidation order was amended to coincide with the closing of the transfer of ASL's business to an assuming reinsurer--American Fidelity Assurance Company--in September 1998.
Task Force Chair - Andrea Bowers; Staff Contact - Bill O'Sullivan Executive Life Insurance Company (Calif.)Judge Sets Altus Trial for February 2005
Following a hearing on November 10, 2003, in the Garamendi v. Altus Finance matter, U.S. District Judge Matz issued a scheduling and discovery order on November 18, 2003. The order indicates the trial will begin no later than February 15, 2005. The order also sets deadlines for discovery cut-off and commencement of mediation as well as a date for filing dispositive motions. For further information or to receive a copy of the order, please contact Meg Melusen at 703.787.4130 or [email protected].
Task Force Chair - Art Dummer; Staff Contact - Reliance Insurance Company (Pa.)GAs to Receive Administrative Expenses from Liquidator
On November 17, 2003, the Reliance Task Force notified the 49 affected guaranty associations of the liquidator's intention to reimburse their administrative expenses incurred through 2002 in connection with handling claims of Reliance policyholders. Although the distribution will not be subject to an early access agreement, some paperwork must be completed before the funds are released. The information sent to the guaranty associations this week included the necessary paperwork, and the task force asks that the associations complete and return the documentation as quickly as possible.
In addition, the liquidator and the Reliance Task Force are finalizing an amendment to the early access agreement signed in 2001. Once the revision is made, an early access distribution from the liquidator is anticipated.
Task Force Chair - Tad Rhodes; Staff Contact -Olsen Named New Administrator of Nebraska GA
Pamela Olsen has been named the new administrator and legal counsel for the Nebraska Life and Health Insurance Guaranty Association. She replaces Sonya Ekart, who now serves on the association's board representing Lincoln Benefit Life Insurance Company.Olsen is an attorney with the law firm of Cline, Williams, Wright, Johnson & Oldfather, LLP. She received a B.J. degree with highest distinction from the University of Nebraska in 1993 and received her J.D., magna cum laude, from Creighton University in 1996. She served as law clerk to Chief Justice C. Thomas White of the Nebraska Supreme Court from 1996 to 1997 and also clerked for Judge George G. Fagg, United States Circuit Judge, Eighth Circuit Court of Appeals, from 1998 to 2000.
The contact information for the Nebraska association is:
Nebraska Life and Health Insurance Guaranty Association
233 South 13th Street
1900 US Bank Building
Lincoln, NE 68508
Phone: 402.474.6900
Fax: 402.474.5393
E-mail: [email protected] (Lori Busch, administrative assistant)
No Wire Next Week
There will be no NOLHGA Wire next week (November 28). The NOLHGA office will close at 1:00 p.m. on Wednesday, November 26, and will be closed November 27 and 28 for the Thanksgiving holiday. The NOLHGA staff wishes everyone a happy and safe holiday.
Staff Contact - Sean McKenna