Annual Meeting Reservation Deadline Nears

The reservation deadline for the Grand Hyatt Seattle, the host hotel for NOLHGA's 2010 Annual Meeting, is Monday, September 13. After this date, NOLHGA can no longer guarantee the special room rate of $209/night plus tax. We encourage all attendees to book their rooms as soon as possible. Online reservations can be made through the Annual Meeting Web page.

  Staff Contact - Sean McKenna

MPC Meets in Minnesota

The Members' Participation Council (MPC) met in Edina, Minnesota, from August 31 to September 2, 2010. Task force meetings were held for Executive Life Insurance Company (California), Executive Life Insurance Company of New York, Imerica Life and Health Insurance Company (Arkansas), Penn Treaty Network America/American Network Insurance Companies (Pennsylvania), Standard Life Insurance Company of Indiana, and Universal Life/Booker T. Washington Insurance Companies (Alabama).

The meeting also featured an Administrators Education Steering Committee presentation on the NOLHGA Web site and QUEST, NOLHGA's new online receivership library, by NOLHGA's Dan Hicks (Manager of Information Systems) and Sean McKenna (Director of Communications). The MPC Executive Committee Business Continuity and Expense Allocation Subgroups held meetings, as did the Accounting Issues Committee.

The General Session featured an update on the work of the Life & Annuity Privacy Working Group led by Chair Candie Kinch (Idaho), an update on financial services regulatory reform by Charles T. Richardson (Baker & Daniels), and a briefing on MPC Executive Committee activity by MPC Chair Mike Marchman (Georgia).

The following task force insolvency reports were presented during the MPC General Session:

  Staff Contact - Sean McKenna American Community Mutual Insurance Company (Michigan)

Task force member John Colpean (Michigan) reported on recent developments in the rehabilitation, including the rehabilitator's efforts to reduce the claims inventory and manage the company's business and operations. The task force continues to monitor the policy/claims count and the financial position of the company.

Task Force Chair - Frank Gartland;   Staff Contact - Bill O'Sullivan American Western Life Insurance Company (Utah)

Task Force Chair Chuck Renn (Missouri) conducted the final report for this insolvency, reporting that the receiver mailed final distribution checks to affected guaranty associations in July.

Task Force Chair - Chuck Renn;   Staff Contact - Medical Savings Insurance Company (Indiana)

Task Force Legal Counsel Joel Glover (Rothgerber Johnson & Lyons) updated attendees on the multistate litigation involving hospitals and providers disputing the company's prior claims payments, reporting that a number of lawsuits have been settled. The task force is attempting to settle the majority of the suits by the fall of 2010. The task force also recently filed an Omnibus Proof of Claims with the receiver. A resolution regarding possible changes to the Settlement Agreement entered into by the Medical Savings Task Force and the receiver, as TPA, was passed unanimously by the Medical Savings MPC.

Task Force Chair - Dan Orth;   Staff Contact - Joni Forsythe National States Insurance Company (Missouri)

Task Force Chair Randy Blumer (Wisconsin) reported on the policy counts and financial status of the company, which was placed in rehabilitation on April 1, 2010. The rehabilitator is currently reviewing bids for the life and Medicare Supplement blocks of business, and the task force is reviewing company operations and conducting an analysis of the company's assets and liabilities.

Task Force Chair - Randy Blumer;   Staff Contact - Paul Peterson Diamond Benefits Life Insurance Company (Arizona)/Life Assurance Company of Pennsylvania (Pennsylvania)

Post-Closing Distribution Received

NOLHGA recently received a distribution from the LACOP estate (approximately $214,000) as a result of additional recoveries made after the closing of the receivership (the Commonwealth Court of Pennsylvania approved the closing of the LACOP estate in May 2003). These recoveries were from the bankruptcy of Tri-State Mechanical, Inc., in which the liquidator had submitted a proof of claim on behalf of LACOP. NOLHGA will distribute the funds to affected guaranty associations in the near future.

  Staff Contact - Paul Peterson

ACLI Names Kempthorne New President & CEO

The American Council of Life Insurers (ACLI) has named Gov. Dirk A. Kempthorne, a former Idaho governor and U.S. Secretary of the Interior, as its next President and CEO, effective November 3. Kempthorne will replace Gov. Frank Keating, who joined the ACLI in 2003.

Gov. Kempthorne was appointed Secretary of the Interior in May 2006 and served in that capacity until January 2009. Before his tenure as Secretary, he was elected Governor of Idaho in 1998 and 2002. He represented the State of Idaho in the United States Senate from 1993 to 1999 and was the Mayor of Boise, Idaho, from 1986 to 1993.

As Governor, Kempthorne chaired the National Governors Association and the Western Governors Association. He also served as the President of the Council of State Governments and a member of the Homeland Security Task Force.

  Staff Contact - Sean McKenna