Centennial Life (KS)
Health Block Claims Diminish Significantly
As shown in the table below, both the number and dollar amount of claims paid have fallen significantly in recent months as cancellations have begun to take effect.
Batch Number--Period--Number of claims--Amount
19-20--April 1-30, 1999--5,775--$1,620,078
21-22--May 1-31, 1999--4,205--$1,364,789
23--June 1-30, 1999--2,713--$1,272,742
24--July 1-31, 1999--1,402--$522,941
25--August 1-31, 1999--1,185--$447,823
26--September 1-30, 1999--814--$424,265
During the past three months, the claims inventory has also shown dramatic reduction, as shown below:
Date--Appealed Claims--Suspended Claims--Controlled Inventory
July 6--1,600--2,150--590
September 27--988--177--99
The task force expects that virtually all claims will be processed by year-end 1999.
Task Force Chair - Mark Femal; Staff Contact - Universe Life (ID)Assumption Reinsurance Closing Scheduled
Closing on the assumption reinsurance agreement with Central States Health & Life Insurance Company of Omaha is currently scheduled for October 29 for Universe's long-term care policy block. On October 13, participating guaranty associations were told what their required funding obligations are. Participating guaranty associations will fund, in the aggregate, $5.34 million. Funding amounts are due by October 27.
Task Force Chair - Tad Rhodes; Staff Contact - Paul Peterson Executive Life (CA)GIC Settlement Received
NOLHGA received this week an additional $313,000 on behalf of the participating guaranty associations from the ELIC Trust as a reallocation of funds due to Post-1988 Muni GICs.
As ELIC PGAs may recall, in order to conclude priority litigation regarding the Executive Life Rehabilitation Plan, a Settlement Agreement was entered into in the Fall of 1995 between, among others, NOLHGA and the Post-1988 Muni-GICs (those Muni-GICs, which were issued after 1988 and whose priority had been subordinated to policyholder claims by the California appellate court). As part of that Settlement Agreement, $13 million otherwise due to the participating guaranty associations under the Enhancement Agreement was allocated to the GICs, subject to certain conditions which were satisfied. In return, the GICs assigned to the participating guaranty associations the first $1 million in excess of the first $18 million of any recovery, plus an amount equal to 50.7% of all assets which they were to receive or secure in the future from ELIC or the ELIC estate.
After the most recent payment, participating guaranty associations have recovered from the Post-1988 Muni-GICs approximately $25 million pursuant to the assignment provisions.
Task Force Chair - Art Dummer; Staff Contact - American Standard Life (OK)Assumption Reinsurance Closing Scheduled
NOLHGA is scheduled to administer the Final Accounting/365 Day True Up today for ASL policies assumed last year by American Fidelity Assurance Company. Participating guaranty associations paid their respective shares of the funding obligation at closing, which occurred on September 22, 1998. However, a number of items could not be accounted for at closing, and under the Assumption Reinsurance Agreement, several post-closing true ups were contemplated. Today's true-up will account for IBNR on the health policies and pre-effective date death claims submitted after the last post-closing true up.
Task Force Chair - Andrea Bowers; Staff Contact - Bill O'SullivanNOLHGA's Franklin to Depart
NOLHGA Assistant Counsel Angela Franklin has accepted a position at Social Consulting International where she will serve as a federal programs analyst. Angela has been a valuable member of NOLHGA's staff during her six years at NOLHGA and we wish her continued success in the future. Angela's last day at NOLHGA will be October 18.
Staff Contact - Sean McKennaCALENDAR/CONFERENCE CALLS
October 19: NOLHGA Board of Directors Meeting, Indian Wells, CA
October 20: NOLHGA MPC Meeting, Indian Wells, CA
October 21-22: NOLHGA Annual Meeting, Indian Wells, CA