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MPC Meets in Wyoming

The Members' Participation Council (MPC) met in Jackson Hole, Wyoming, on October 6, 2008. The following are summaries of task force insolvency reports presented during the meeting:

Staff Contact - Sean McKenna American Chambers Life Insurance Company (Ohio)

Task Force Chair Chuck Gullickson (South Dakota) reported that updated guaranty association claims information was recently submitted to the liquidator, but the task force is uncertain whether any early access distributions will be made in the near future.

Task Force Chair - Chuck Gullickson; Staff Contact - Executive Life Insurance Company (California)

The Executive Life MPC made a closed-session presentation.

Task Force Chair - Art Dummer; Staff Contact - Bill O'Sullivan Executive Life Insurance Company of New York (New York)

The ELNY MPC held a closed-session "in the round" task force meeting.

Task Force Chair - Jack Falkenbach; Staff Contact - Lincoln Memorial & Memorial Service Life Insurance Companies (Texas)

The Lincoln Memorial & Memorial Service MPC held a closed-session "in the round" task force meeting. The MPC unanimously passed a resolution authorizing the task force to accept the TPA service agreements negotiated with North Carolina Mutual and North America Life Insurance Companies and to begin a 30-day opt-out process with the guaranty associations. In addition, the MPC authorized the task force to enter into negotiations with both companies to acquire the business they are administering under the TPA service agreements via an assumption reinsurance transaction. An offer by the companies for other blocks of business administered by the Special Deputy Receiver on behalf of the guaranty associations was rejected at this time.

Task Force Chair - Tad Rhodes; Staff Contact - Paul Peterson National Heritage Life Insurance Company (Delaware)

NOLHGA Staff Contact Meg Melusen updated attendees on the Bear Stearns case, which is being appealed by Bear Stearns in the Florida courts, and on the sale of the Wetlands Property, the last piece of real estate in the NHL estate. The NHL MPC unanimously passed a resolution authorizing the task force to complete negotiations with the receiver on a settlement agreement regarding claims, distributions, and deposits.

Task Force Chair - Dan Orth; Staff Contact - The Thunor Trust Companies

Task Force Chair John Colpean (Michigan) reported that the Missouri liquidator is preparing to make a distribution for guaranty association claims and that the liquidator and task force are in discussions concerning claims relating to International Financial Services Life Insurance Company.

Task Force Chair - John Colpean; Staff Contact -

MPC Meeting Features Tribute to Sye Leer & More

The MPC general session also featured a tribute to Sye Leer, former Administrator of the New Mexico Life Insurance Guaranty Association, by Jim Kleen (Oregon). In addition, Life and Annuity Privacy Working Group Chair Candie Kinch (Idaho) updated attendees on the group's work, and GSMTF Assessment Subgroup Chair Bart Boles (Texas) and Jan Funk (Indiana) reported on the subgroup's activities. NOLHGA President Peter Gallanis reported on recent developments concerning financial services modernization on Capitol Hill, and MPC Chair Bart Boles reported on the activities of the MPC Executive Committee and the NOLHGA Board.

Staff Contact - Sean McKenna

IRMA Exposure Period to End December 31

In January 2008, the NAIC's Financial Regulation Standards and Accreditation Committee (FRSAC) exposed the NAIC's Insurer Receivership Model Act (IRMA) for incorporation into state accreditation standards. Under the current Part A Financial Accreditation Standards, the NAIC requires that a state have a statutory "receivership scheme" in place that is similar to that contemplated under the NAIC's predecessor receivership model, but does not require that states adopt the NAIC's receivership model or any specific statutory language that is "substantially similar" to that set forth in the model. FRSAC has indicated that, if adopted, an IRMA-based standard would be implemented under the current "statutory scheme" approach, rather than the NAIC's more stringent "substantially similar" standard.

The exposure and comment period for this revised accreditation standard ends on December 31, to be followed by a hearing in the spring of 2009. Any comments concerning the proposed standard should be sent to the attention of Julie Glaszczak, the NAIC's Senior Accreditation Manager, at [email protected].

Staff Contact - Joni Forsythe

IAIR/NCIGF Joint Insolvency Conference Slated for November

The International Association of Insurance Receivers (IAIR) and the National Conference of Insurance Guaranty Funds (NCIGF) will co-host a conference entitled "Tipping Points: Exploring the Insolvency Decision Process" on November 6 and 7, 2008, in Scottsdale, Arizona. This interactive program will examine the insolvency and receivership decision-making processes to develop a "Tipping Point" checklist for submission to regulators. The program brochure and registration information are available online at www.IAIR.org.