MPC Meets in Florida

The Members’ Participation Council (MPC) met in Manalapan, Florida, on October 21, 2013. The MPC Executive Committee held a meeting, and the committee’s D&O Insurance Subgroup conducted a presentation on its findings. In addition, the Guaranty Association Benefits Company (GABC) held its first Annual Meeting. The Lincoln Memorial/Memorial Service Insurance Companies (Texas), Executive Life Insurance Company of New York, and Penn Treaty Network America/American Network Insurance Companies (Pennsylvania) task forces also conducted presentations as part of NOLHGA’s Annual Meeting program.

In addition to the task force report below, the General Session featured an update on the activities of the Security Advisory Committee by Co-Chair Candie Kinch (Idaho and Oregon). NOLHGA President Peter Gallanis provided an update on financial services modernization and regulatory activity, and MPC Chair John Colpean briefed attendees on MPC Executive Committee activity.

  Staff Contact - Sean McKenna Life & Health Insurance Company of America (Pennsylvania)

Task Force Chair Linda Becker (Kansas) reported that the task force had selected Disability Insurance Specialists as the new TPA for the remaining policies (Rich Swanson, the President of the current TPA, plans to retire at year-end). The LHICA MPC unanimously passed a resolution authorizing the task force to enter into a service agreement with Disability Insurance Specialists.

Task Force Chair – Linda Becker;   Staff Contact - American Chambers Life Insurance Company (Ohio)

Estate Closure and Petition for Final Distribution Filed

In its efforts to wind down and close the estate, the American Chambers liquidator filed a petition with the Liquidation Court on October 11, 2013, seeking approval of, among other things, the final report of claims, the final reserve and payment of administrative expenses, and a final distribution of assets. The proposed distribution of $7.1 million to the 38 affected guaranty associations would bring the guaranty associations to 40.9% of their Class 2 policyholder-level claims. The distribution will also include the assignment to NOLHGA of a promissory note payable to the estate with a relatively small balance. A hearing is anticipated in early November. For a copy of the petition, contact Meg Melusen at 703.787.4130 or [email protected].

Task Force Chair - Chuck Gullickson;   Staff Contact -