Mid-Continent Life (OK)
Letter of Intent to Assume Policies Signed
On October 7, 1999, Oklahoma Insurance Commissioner Carroll Fisher announced that a letter of intent had been signed with Life Investors Insurance Company of America, a wholly owned subsidiary of AEGON, to assume all policies of Mid-Continent Insurance Company. With respect to Mid-Continent's extra life policies, the reported terms of the assumption include a commitment by Life Investors to maintain policyholder dividend scales for five years and to refrain from increasing premium rates or decreasing coverage for 10 years.
In other Mid-Continent news, Michael Farrimond, a Mid-Continent policyholder and one of the named plaintiffs in the putative class action lawsuit against Mid-Continent's ultimate parent company, Florida Progress, and others, has filed an application seeking the dismissal of the receivership proceedings. Farrimond claims that there is no reason to keep Mid-Continent in receivership since the company's reserve problems can be remedied by increasing premiums on the extra-life policies.
Finally, NOLHGA's Mid-Continent task force voted on September 29, 1999 to file an amicus brief in opposition to the Oklahoma District Court's recent ruling that Mid-Continent receivership records are subject to Oklahoma's Open Records Act. Oklahoma Insurance Commissioner Fisher had requested NOLHGA's participation as an amicus party.
Task Force Chair - Andrea Bowers; Staff Contact - Bill O'Sullivan