American Life Assurance Corporation (Ala.)
Proceedings before the Civil Court of Appeals Continue
As noted in the August 27, 2004, issue of the NOLHGA Wire, ALAC's former shareholder, R. K. Hunter, has filed an appeal challenging the trial court's June 18 order approving final distributions, dissolution of the company, and closing of the ALAC estate. The basis for the appeal, as stated in the notice, is Mr. Hunter's ongoing objection to the trial court's denial of broad-scale discovery in advance of the closing hearing. Mr. Hunter previously challenged the trial court's denial of discovery by filing petitions with the Civil Court of Appeals and the Alabama Supreme Court just days before the final hearing on the petition to close the estate. Both courts denied Mr. Hunter's petitions. Notwithstanding these rulings, Mr. Hunter has brought the issue once again before the Civil Court of Appeals. The trial record has been completed and filed with the Civil Court of Appeals. Barring further extensions, Mr. Hunter's opening brief was due to be filed on October 13.
Task Force Chair - Mike Marchman; Staff Contact - Joni Forsythe London Pacific Life & Annuity Company (N.C.)Exchange Agreement Completed
The exchange agreement with Hartford Life successfully took place on October 12, 2004, with all funds transferred to the applicable party on October 13. Net funding by guaranty associations to Hartford was $46.8 million for over 16,000 policyholders who elected to choose the exchange. NOLHGA anticipates that Hartford Life will mail all policies within the next two weeks. These policyholders will have an additional "free look" period to consider the terms of their new Hartford Life policies.
In addition, information has been transferred to Philadelphia American to begin setting up records for approximately 4,800 policyholders who have elected to continue the covered portion of their contracts with the guaranty associations. We anticipate beginning administration and mailing a notice to these policyholders by November 1.
Task Force Chair - Frank Gartland; Staff Contact - Paul Peterson National American Life Insurance Company of Pennsylvania (Pa.)Appeal Period Expires without Objections
The appeal period for the final estate distribution expired on October 8, 2004, with no objections being filed. The liquidator has informed NOLHGA that he has filed a petition with the court to make final distributions. Once approved, funds will be transferred to NOLHGA on behalf of the guaranty associations. Guaranty associations will receive approximately $7.1 million. With this distribution, the associations will have received 100 percent reimbursement for approved expenses and 89.3 percent of policy-level claims. We anticipate receipt of the funds during the fourth quarter of 2004.
Task Force Chair - Tad Rhodes; Staff Contact - Paul PetersonSite Chosen for 2005 Legal Seminar and August MPC Meeting
The Legal Committee has selected Park City, Utah, as the location for NOLHGA's 13th Annual Legal Seminar. The MPC will conduct its summer meeting in conjunction with the Legal Seminar, as it has done for the previous three years. The tentative meeting dates are August 16-17 for the MPC meeting and August 18-19 for the Legal Seminar. Hotel negotiations are currently underway, and additional updates will appear in the NOLHGA Wire.
Staff Contact -Voter Designation and Proxy Forms Distributed
On October 11, 2004, NOLHGA e-mailed a letter to guaranty association administrators and their state board chairs reminding them of the upcoming election to fill four board of directors positions during the business meeting of NOLHGA's Annual Meeting on October 26. In order to vote, each member association must submit a representative designation form to Holly Wilding by October 20. For those wishing to vote by proxy, a proxy ballot must also be completed and returned to Ms. Wilding by October 20. Both forms were attached to the distribution letter, and they can be faxed to 703.481.5209. Additional forms can be obtained by contacting De Gadd at [email protected] or 703.787.4121.
Staff Contact - De Gadd