Incoming ACLI Chairman to Speak at NOLHGA’s 19th Annual Meeting
John Barrett, incoming chairman of the ACLI and chairman, president, and CEO of Western & Southern Financial Group in Cincinnati, has been added to the list of speakers at “The Direction of Change,” NOLHGA’s 19th Annual Meeting. In addition to Barrett’s presentation, the meeting program features:
• Robert Gordon (Senior Counsel, House Committee on Financial Services) on the outlook for the financial services industry
• Owen Ryan (Global Insurance Industry Leader & National Managing Insurance Partner, Deloitte & Touche) on hidden risks in mergers and acquisitions
• Insurance Commissioners Holly Bakke (N.J.) and Lawrence Mirel (D.C.) on solvency regulation
• Scott Harrington (W. Frank Hipp Professor of Insurance & Professor of Finance, Moore School of Business at the University of South Carolina) on federal chartering and guaranty funds
In addition, political commentator Fred Barnes will give attendees an insider’s view of the Washington political scene, and The Capitol Steps, one of the city’s favorite comedy troupes, will offer a comical look at politics in our nation’s capital.
The meeting takes place October 31 and November 1, 2002, at the Monarch Hotel in Washington, D.C.; an MPC meeting will be held October 30. To register for both meetings, visit the meeting Web page and click on “Registration.” Once there, fill out the registration form, print it, and mail the form to NOLHGA with your registration fee.
If you have any questions about meeting registration, please contact De Gadd at 703.787.4121 or [email protected].
Staff Contact - De Gadd Bankers Commercial Life Insurance Company (Tex.)Assumption Agreement Nears Completion
An assumption reinsurance agreement with Philadelphia American Life Insurance Company should be completed within the next week, and guaranty association opt-out packages will be mailed shortly thereafter. The initial closing should occur in mid-October, with anticipated guaranty association funding of approximately $3.5 million.
Philadelphia American is a wholly owned subsidiary of New Era Life Insurance Company and is licensed in all states except Michigan, New York, Rhode Island, and Wyoming. The company will assume all life and accident and health liabilities of the Bankers Commercial blocks of business.
Task Force Chair - William Falck; Staff Contact - Paul Peterson Diamond Benefits Life Insurance Company (Ariz.)/Life Assurance Company of Pennsylvania (Pa.)Consent Forms Due September 9
The DBL and LACOP receivers are expected to file petitions with their respective courts for distributions to the guaranty associations and Security Benefit Life (the assuming reinsurer) in the near future. Guaranty associations that have not already submitted a Consent to Termination of the Reimbursement Trust and Appointment form to NOLHGA are asked to complete the form and submit it to the attention of Paul Peterson no later than September 9 to complete the court petitions.
Staff Contact - Paul Peterson Kentucky Central Life Insurance Company (Ky.)Task Force Representatives Meet with KCL Liquidator
Representatives of NOLHGA’s KCL Task Force met with the KCL deputy liquidator and his legal counsel on August 28 to discuss the status of the estate and the outstanding claims of the participating guaranty associations. The deputy liquidator reported that the estate was making progress on KCL’s outstanding asset recovery litigation, real estate sales, and claim adjudication. The task force representatives and the deputy liquidator discussed in some detail the current status of the guaranty associations’ claims, which were last updated on August 31, 2001. The deputy liquidator identified some general concerns over some of the guaranty associations’ expense claims and asked for detailed backup information for those claims. NOLHGA will compile this backup information and provide it to the deputy liquidator. The deputy liquidator agreed to work with the task force in an effort to resolve any remaining issues over the expense claims.
Task Force Chair - John Colpean; Staff Contact - Joni Forsythe London Pacific Life & Annuity Company (N.C.)Task Force Meets with Insurance Department
On August 6, London Pacific was placed into voluntary rehabilitation by the North Carolina Insurance Department. The company is licensed in 41 states and the District of Columbia, and sales have been primarily single premium deferred annuities. A subsequent moratorium order was issued on August 19.
Currently, the N.C. Insurance Department believes the company can be rehabilitated with no guaranty association involvement. The orders, along with policyholder communications, hardship request forms, and a frequently asked questions (FAQ) list, can be found at the following Web sites: http://www.radtrust.com/4+/LondonPacific.htm and http://www.londonpacific.com.
The London Pacific Task Force consists of Frank Gartland (Ohio: task force chair), Lowell Miller (N.C.: domicile state), Mark Femal (Wis.), Peggy Parker (Va.), Bart Boles (Tex.), Mike Surguine (Ariz.), and Peter Leonard (Calif.). The task force consultants are Bruce Winterhof (Milliman USA), Tim Hart (Peterson Consulting), and John Gavin (Foley & Lardner).
Task force representatives and consultants met with the N.C. Insurance Department and company officials on August 21, and the task force is currently reviewing policy-level and financial information received at the meeting. A preliminary report should be sent to affected guaranty associations within the next few weeks.
Task Force Chair - Frank Gartland; Staff Contact - Paul Peterson