MPC Meets in San Diego

The Members’ Participation Council (MPC) met in San Diego on October 7, 2014. The Penn Treaty Network America/American Network Insurance Companies (Pennsylvania) Task Force held an in-the-round meeting, and the MPC Executive Committee met as well.

In addition to the task force reports below, the General Session featured an update on the activities of the Security Advisory Committee by Committee Chair Candie Kinch (Idaho and Oregon), a presentation on the results of the GA Survey on Administrative Practices by MPC Subgroup Chair Candie Kinch, and a report from the GA Best Practices Subgroup by Chair Pam Olsen (Nebraska). MPC Chair John Colpean briefed attendees on MPC Executive Committee activity.

  Staff Contact - Sean McKenna Freestone Insurance Company (Delaware)

Joni Forsythe (NOLHGA) updated attendees on the liquidation of this property and casualty company, which wrote some group accident and health policies. A review team consisting of Bart Boles (Texas), John Colpean (Michigan), and Jack Falkenbach (Delaware) has been formed to evaluate potential guaranty association obligations arising from the company’s liquidation (effective August 15, 2014) , and more information will be provided as it becomes available.

  Staff Contact - Joni Forsythe Medical Savings Insurance Company (Indiana)

Task Force Chair Pam Olsen (Nebraska) reported that the task force has succeeded in settling most of the lawsuits involving the estate. The task force expects the estate to close in early 2015, but the closing will include a Petition to Defer Closing Proceedings for Limited Purposes, which would allow the receivership court to retain jurisdiction over the remaining litigation.

Task Force Chair – Pam Olsen;   Staff Contact - Joni Forsythe Universal Life/Booker T. Washington Insurance Cos. (Alabama)

Task Force Financial Consultant Mark Femal (Strohm Ballweg) reported on the task force’s agreement with Insurance Administrative Solutions (IAS) to become the new TPA for the guaranty associations. He also stated that the companies’ data issues have made it difficult for the Receiver to mail notices to policyholders. Task Force Legal Counsel Joel Glover (Lewis Roca Rothgerber) updated attendees on two agreements with IAS and also reported that a dispute with the Pension Benefit Guaranty Corporation (PBGC) had been resolved.

Task Force Chair – Rusty Haydel;   Staff Contact -