October 2, 2009

Q&A with Northwestern Mutual's Zore Slated for Annual Meeting

Northwestern Mutual Chairman and CEO Ed Zore has agreed to participate in a question and answer session during his presentation at NOLHGA's 2009 Annual Meeting, which will be held on October 13 and 14 at the Fairmont Washington, D.C. Mr. Zore is scheduled to speak on the afternoon of October 13.

Questions for the session can be submitted when attendees register for the meeting. It will not be possible to ask every question submitted, but every submission will be placed in a drawing for a special prize. More information about the prize will be available at the Annual Meeting registration desk.

In other Annual Meeting news, time is running out for attendees to register online for the free Fairmont President's Club to take advantage of free Internet access, exercise club membership, and other amenities at the Fairmont Washington, D.C. Please note that guests must register before they arrive at the hotel to receive the President's Club benefits.

  Staff Contact - Golden State Mutual Life Insurance Company (California)

Order of Conservation Entered, NOLHGA Task Force Formed

California Insurance Commissioner Steve Poizner announced that an order of conservation was entered against Golden State Mutual Life Insurance Company on September 30, 2009. The company will discontinue selling new policies immediately.

Domiciled in California and operating as a mutual company, Golden State Mutual operated in 11 states (California, Georgia, Illinois, Louisiana, Maryland, Michigan, Mississippi, Nevada, North Carolina, Tennessee, and Texas) and the District of Columbia. The company's primary business was the sale of individual term and whole life products, with annuity riders attached on a participating basis, through a number of general agents.

Under California law, companies like Golden State Mutual must have more than $5 million in capital and surplus; at the end of June, Golden State Mutual reported capital and surplus of only $1.65 million, with an additional $600,000 in losses during the third quarter. The company has experienced significant net operating losses in every year for the past five years.

The Commissioner's Conservation and Liquidation Office has now taken over the company. That office will oversee the payment of claims and the receipt of premiums while developing a wind-down plan to protect the policyholders.

MPC Chair Bart Boles has appointed a task force for this new receivership. The task force will be chaired by Lowell Miller (North Carolina) and will include Peter Leonard (California), Bart Boles (Texas), Dan Orth (Illinois), and John Colpean (Michigan).

Task Force Chair - Lowell Miller;   Staff Contact - Medical Savings Insurance Company (Indiana)

GA Expense Reports Due October 30

The Medical Savings Task Force is collecting information concerning expenses incurred by affected guaranty associations in connection with the Medical Savings insolvency. The expense data will be used for purposes of reporting and for submission of an Omnibus Proof of Claim for this case. Our survey includes expense information for the reporting period inception through September 30, 2009.

Expense data should be submitted by affected associations using NOLHGA's online proof of claims survey tool. Please complete your submissions by October 30, 2009. If you have no expenses to report, please notify Gus Estrada via e-mail ([email protected]). If you have any questions, please contact Mr. Estrada or Joni Forsythe (703.787.4103).

Task Force Chair - Dan Orth;   Staff Contact - Joni Forsythe

October MPC Meeting Briefing Book Posted

The briefing book for the October 12 MPC meeting in Washington, D.C., has been posted on the meeting Web page. Users will need to log in after clicking on the link to access the file, which can be found in the "Meeting Resources" section.

The briefing book includes a revised meeting schedule, attendee list, and other meeting materials (task force status reports will be distributed after the meeting). It is in PDF format, and users will need Adobe Acrobat Reader to view and print the materials. Acrobat Reader is available free from Adobe.

If you have any trouble accessing the meeting Web page or briefing book, please contact Dan Hicks at [email protected] or 703.787.4112. If you have any questions about the meeting, contact Sean McKenna at [email protected] or 703.787.4106.

  Staff Contact - Sean McKenna