January 2013 MPC Meeting Site Goes Live
The Web page for the January 2013 MPC meeting in Clearwater Beach, Florida, is now live. The page features online registration and hotel information (reservations are by phone only) as well as other meeting information. A preliminary schedule for the meeting should be posted in late November, but the Announcements section contains information about an Administrators Education Steering Committee presentation on Unclaimed Property/Escheat Issues that will be held at the meeting (see below).
If you have any trouble accessing the meeting Web page, 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]
Staff Contact - Sean McKenna The Administrators Education Steering Committee will sponsor a panel presentation on Unclaimed Property/Escheat at the January 2013 MPC meeting in Clearwater Beach, Florida. The panel will focus on unclaimed property/escheat considerations from the perspective of insolvent insurers and guaranty associations. Panel members will include Joel Glover (Rothgerber Johnson & Lyons LLP), Jan Funk (Indiana guaranty association), and Bart Boles (Texas guaranty association), and it is anticipated that there will be significant input and discussion from the audience as well. The presentation will be a Closed Session--only administrators, board members, legal counsel, and consultants representing state guaranty associations and NOLHGA may attend. The Members' Participation Council (MPC) met in San Antonio on October 1 and 2, 2012. Task force meetings or briefings were held for Executive Life Insurance Company (California), Executive Life Insurance Company of New York, Penn Treaty Network America/American Network Insurance Companies (Pennsylvania), and Universal Life/Booker T. Washington Insurance Companies (Alabama). The Lincoln Memorial/Memorial Service Life Insurance Companies (Texas) Task Force held a Litigation Update, and the MPC Executive Committee met. The GA Laws Committee conducted a presentation as well. In addition to the task force reports below, the General Session featured a briefing on MPC Executive Committee activity by MPC Chair Mike Marchman and a brief update on financial services regulatory modernization by NOLHGA President Peter Gallanis. The following two task force insolvency reports were presented during the MPC General Session: Task Force Chair Mike Marchman (Georgia) briefed attendees on the rehabilitation of this company, which wrote primarily P&C business but had a small block of health business (mostly long-term disability) as well. The task force is reviewing the potential coverage obligations for affected guaranty associations and is also exploring the current claims handling arrangements for the health block. Task Force Member Chuck Renn (Missouri) reported on a proposed agreement with Family Life Insurance Company to assume approximately 3,100 health policies (though not the long-term-care block). The National States MPC unanimously approved a resolution authorizing the task force to proceed with the agreement. The receivership of Fidelity Bankers Life Insurance Company that began in 1991 drew to a close on September 26, 2012, when the Virginia State Corporation Commission entered an order terminating the receivership and discharging the Deputy Receiver and Special Deputy Receiver. Thirty-nine guaranty associations had participated in the Fidelity Bankers receivership and provided $11.5 million to their covered policyholders in 2000 pursuant to a "Settlement, Release and Funding Agreement." NOLHGA recently received a distribution for approximately $297,000. This distribution will bring total recoveries in the Legion/Villanova case to $3.7 million, representing approximately 75% of total claims and expenses incurred by the guaranty associations. The task force anticipates distributing these funds in the near future. NOLHGA's state guaranty association law summary reports were updated October 1, 2012, to reflect legislative changes to the guaranty association statutes made this year by the following states: Georgia, Hawaii, Maryland, Nebraska, New Mexico, New York, South Dakota, Wisconsin, and Wyoming. Alabama also made changes this year that will go into effect on January 1, 2013, and will be reflected in the next Law Summaries update. The GA Law Summaries are available under Facts & Figures on the homepage of NOLHGA's Web site in addition to being accessible under the Member Resources section in the password-protected portion of the site. Users can generate individual state reports by choosing from the "Law Summaries by State" drop-down menu. Alternatively, the summaries can be viewed and printed by selecting a specific report from the "Law Summaries by Provision" drop-down menu, which lists all states by topic. Finally, the Guaranty Association Laws page provides users with state guaranty association contact information as well as links, where applicable, to the state guaranty association's Web site and the corresponding state insurance department's Web site. Changes or corrections should be submitted to Meg Melusen at [email protected].Unclaimed Property/Escheat Presentation Scheduled for January 2013 MPC Meeting
MPC Meets in San Antonio
Receivership Terminated
Distribution Received
Guaranty Association Law Summaries Updated on NOLHGA's Web Site