October MPC Meeting Schedule Available
A preliminary schedule for the upcoming MPC meeting, which will be held October 24, 2005, at the Westin Resort, Hilton Head Island in Hilton Head Island, S.C., has been posted on the Annual Meeting/MPC meeting Web page. Users may need to log in after clicking on the link to access the file, which can be found in the "Meeting Resources" section.
The schedule is in PDF format, and users will need Adobe Acrobat Reader to view and print the materials. Acrobat Reader is available free from Adobe. The MPC briefing book should be posted on the meeting Web page shortly.
If you have any trouble accessing the meeting page or preliminary schedule, 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 Andrew Jackson Life Insurance Company (Miss.)Plaintiffs Appeal Judgment for Assuming Carrier in "Vanishing Premium" Litigation
The plaintiffs in a lawsuit against Central Security Life Insurance Company that centered on policies the company assumed from Andrew Jackson Life Insurance Company are appealing a ruling by a Mississippi court in favor of the company.
This litigation arose in connection with policies issued by Andrew Jackson in 1983 and assumed by Central Security in 1993 pursuant to an assumption reinsurance agreement approved by the receivership court after Andrew Jackson was placed into liquidation. The complaint was filed in Mississippi against Central Security and a former agent of Andrew Jackson alleging liability for fraud, misrepresentation, and the use of false and misleading marketing materials and vanishing premium illustrations to induce the plaintiffs to purchase certain life insurance policies from Andrew Jackson.
On June 15, 2005, the Circuit Court granted judgment in favor of Central Security, finding that the assuming carrier is not responsible for any acts or omissions of Andrew Jackson or its agents and further finding no facts to support any allegations of misconduct on the part of Central Security. Gregory v. Central Security Life Ins. Co., et al., Civ. No. 02002-18, In the Circuit Court of Chickasaw County, Mississippi, Second Judicial District (June 15, 2005, order granting summary judgment and dismissal of Central Security). The plaintiffs then filed a motion to reconsider. That motion was denied on August 19. The plaintiffs have since taken the matter up on appeal to the state supreme court. It is unclear at this time whether the case will remain with the Mississippi Supreme Court or be referred to the Court of Appeals. In either event, no definitive resolution of the appeal is expected before year-end.
The judgment entered by the Circuit Court in this case is consistent with a decision reached in similar "vanishing premium" litigation filed against Central Security in Mississippi in 2002 under a policy issued by Andrew Jackson wherein the court similarly ruled that Central Security had no liability for acts or events that transpired prior to the closing of the Assumption Reinsurance Agreement.
Copies of the pleadings and orders concerning the Gregory litigation and the pending appeal have been posted and are available to associations affected by the Andrew Jackson insolvency on NOLHGA's IRC database. Please contact Joni Forsythe at 703.787.4103 for additional information.
Task Force Chair - Dan Elrod; Staff Contact - Joni Forsythe