October 1, 2004 London Pacific Life & Annuity Company (N.C.)

GA Funding Schedules Distributed; TPA Agreement Near Completion

On September 28, 2004, guaranty association funding and payment instructions were e-mailed to all affected states. Amounts are based on the policy owner elections made as of September 21 regarding choices offered in the exchange agreement with Hartford Life. Due to the large amount of estate assets the guaranty associations will receive at the initial closing (scheduled for October 13) associated with the policies that will continue coverage with the guaranty associations, it has been recommended that those assets be used to fund the exchange agreement with Hartford. As a result, only 12 guaranty associations need to remit funding for the initial closing: Alabama, Delaware, Hawaii, Idaho, Kansas, Maryland, Mississippi, Missouri, North Dakota, Oklahoma, Utah, and Wyoming. Payments are due October 7.

A TPA agreement has been finalized with Philadelphia American Life Insurance Company (an affiliate of New Era Life Insurance Company) to provide ongoing administration of the London Pacific deferred annuity contracts whose holders have elected to continue their policies with the guaranty associations. It is expected that the opt-out package will be e-mailed to all affected guaranty associations no later than October 1. A 20-day opt-out period will be utilized, and guaranty associations wishing not to participate must submit a request in writing. Absent an express written opt out, guaranty associations will be deemed to be participating in the agreement.

Data transfer of records will occur during the latter half of October, and we expect to begin processing by November 1 if all goes well. Also, a "welcome letter" will be mailed to these policy owners on or about November 1. The letter will include contact information for Philadelphia American along with basic information on the policy records established (such as account value and cash surrender values, crediting rates, etc.).

Biweekly claim reports will be e-mailed by Philadelphia American to guaranty associations once processing begins. Guaranty associations in turn must remit funding for approved claims within 10 days of receipt. Billings for services will be paid through NOLHGA and allocated to guaranty associations via the quarterly MPC insolvency billing process.

Task Force Chair - Frank Gartland;   Staff Contact - Paul Peterson

Annual Meeting Registration Ends October 4

The registration deadline for NOLHGA's 21st Annual Meeting, which will be held October 26-27, 2004, at the Four Seasons Hotel Las Vegas in Las Vegas, Nev., is Monday, October 4. If you have not yet registered for the Annual Meeting, we urge you to do so before the deadline. Online registration is available at the meeting Web page, as is a new service allowing attendees to pay their registration fee by Visa or MasterCard.

The deadline for hotel reservations at the Four Seasons passed this week. Rooms may still be available, but we can no longer guarantee the NOLHGA room rate. If you have any problems making reservations (contact information for the Four Seasons can be found on the meeting Web page), please contact Holly Wilding at 703.787.4111 or [email protected].

If you have any trouble accessing the meeting Web page, please contact Dan Hicks at 703.787.4112 or [email protected].

  Staff Contact -