MPC Meets in Austin

The Members’ Participation Council (MPC) met in Austin, Texas, on October 9, 2019. The Guaranty Association Benefits Company (GABC) held its Annual Meeting, and the MPC Executive Committee and AF&L/Senior American Insurance Companies Task Force (Pennsylvania) also met. Closed-session Major Receivership Briefings were held for the Penn Treaty Network America/American Network Insurance Companies (Pennsylvania) Task Force and for recent receivership activity, and LTC Re held its Annual Meeting (these meetings took place before NOLHGA’s 2019 Annual Meeting).

In addition to the task force reports below, the MPC General Session featured a closed-session presentation by the Lincoln Memorial/Memorial Service Life Insurance Companies (Texas) Task Force. The meeting also featured a report on the activities of the Security Advisory Committee (SAC) by Co-Chair Candie Kinch (Idaho, Oregon, and Wyoming) and updates from the Legal Committee’s HMO Health Insolvency Subgroup (by Chair Jack Falkenbach (Delaware)) and HMO Legal Issues Subgroup (by Chair Pamela Olsen (Minnesota and Nebraska)). NOLHGA President Peter Gallanis provided the President’s Report, and MPC Chair Tom Sullivan briefed attendees on MPC Executive Committee activity. He also announced the impending retirement of Phyllis Perron, Executive Director of the Louisiana Life & Health Insurance Guaranty Association, and thanked her for the outstanding work she has done for the guaranty system.

  Staff Contact - Sean McKenna AF&L/Senior American Insurance Companies (Pennsylvania)

Task Force Chair Bart Boles (Texas) reported that a liquidation order had been entered for Senior American Insurance Company (SAIC) with an effective date of September 3, 2019. AF&L, an SAIC affiliate, is serving as the interim TPA for the SAIC business. The task force has been working to confirm policyholder state of residence and make adjustments as necessary. The first batch of claims were reported and sent to the affected guaranty associations for payment on September 15.

Task Force Chair - Bart Boles;   Staff Contact - Joanna Akiyama Reliance Insurance Company (Pennsylvania)

Task Force Chair Tad Rhodes (Colorado and Oklahoma) reported that additional distributions are expected in connection with this receivership. Distributions, to date, have brought guaranty association expense recoveries up to 100% of allowed expense claims and 92% of policy-level claims. Additional distributions are expected to bring policy-level recoveries up to 100% of allowed claims, and some funds may be available to pay general creditor claims. Efforts are underway to document and submit guaranty association general creditor–level claims, including premium refunds and unpaid guaranty association assessments against Reliance. The timing and amount of general creditor–level distributions are not yet known.

Task Force Chair - Tad Rhodes;   Staff Contact - Joni Forsythe

Assessment Data Survey Information Posted Online

The 2018 Assessment Data Survey information has been posted on Quest, NOLHGA’s secure insolvency library. The premium data available for download is a compilation of assessable premium for companies that are licensed in each state. The data is calculated using the information reported on the Life, Health & Annuity Guaranty Association Model Act Assessment Base Reconciliation Exhibit and the Adjustments to the Life, Health & Annuity Guaranty Association Model Act Assessment Base Reconciliation Exhibit. The data files provided on Quest (which can be accessed by authorized users after logging into the NOLHGA website) are similar to those sent in past years.

A letter has been sent to all state insurance commissioners informing them the survey data is available from Strohm Ballweg if they would like a copy of the data for their state.

If you have any questions regarding the ADS data, please contact Paul Peterson ([email protected]) or Joanna Akiyama ([email protected]).

  Staff Contact - Paul Peterson

GA Contact Info

Peter Inoue, Executive Director and Administrator of the Hawaii Life & Disability Insurance Guaranty Association, has a new e-mail address. He can now be reached at [email protected].

  Staff Contact - De Gadd