Annual Meeting Registration Deadline
NOLHGA's 16th Annual Meeting, being held October 20-22, at the Hyatt Grand Champions in Indian Wells, California, is a mere month away. The registration deadline for both the Annual Meeting and the MPC meeting is September 24.
NOLHGA will be holding one of its quarterly Members' Participation Council (MPC) meetings on October 20, from 11:30 am - 4:00 pm, also at the Hyatt Grand Champions. Attendees will be updated on the latest developments in the insolvencies of Executive Life, Fidelity Bankers, National Affiliated Investors Life, National Heritage Life, and the Thunor Trust.
Staff Contact - Midwest Life (LA)Verdict Reached in Midwest Criminal Retrial
Federal prosecutors successfully retried former Arkansas state Representative Doug Wood in the Midwest Life criminal trial, United States vs. Jackson (in the U.S. District Court, Eastern District of Louisiana (New Orleans)), after the jury in the initial trial failed to reach a verdict on a conspiracy count and 10 mail fraud counts against Wood. That trial ended March 3. On August 13, Wood was convicted on all counts, and will be sentenced on November 10. Six of Wood's co-defendants, one of whom was found guilty and five of whom pleaded guilty, are scheduled to be sentenced September 29 by U.S. District Judge Ivan L.R. Lemelle. Judge Lemelle also will sentence Wood.
As reported in the April 16, 1999 Weekly Wire, the prosecution had alleged that the defendants in the case committed fraud in several transactions, resulting in losses to the policyholders of Midwest Life Insurance Co., Fidelity Fire and Casualty Insurance Company and Public Investors Life Insurance Company.
Task Force Chair - Luther Hill;
Universe Life (ID)
Assumption Reinsurance Agreement Sent
On September 15, the assumption reinsurance agreement with Central States Health and Life Insurance Company of Omaha (CSO) was sent to affected guaranty associations. CSO is assuming the block of long-term care policies and will assume approximately $5.2 million in obligations. The effective date of the agreement is July 1. The deadline for associations to opt-out of the agreement is October 15. Closing on the agreement will be scheduled on October 29.
Task Force Chair - Tad Rhodes; Staff Contact - Bill O'Sullivan First National Life Insurance Company(AL)American Pioneer Seeks Reconsideration
On September 1, American Pioneer Life Insurance Company asked the First National Life Insurance Company receivership court to reconsider its August 8 ruling that the Receiver was not obligated to pay to American Pioneer the amount of a reserve deficiency. As reported in the August 20 Weekly Wire, the court also ordered American Pioneer to return to the Receiver overpayments that American Pioneer had received on behalf of the Receiver, but had held to offset its claim against the Receiver for expense reimbursements. The court's reasoning was that the reinsurance and assumption agreement was clear, should be enforced in accordance with its terms, and that the agreement did not provide for any adjustments.
In its September 1 motion for reconsideration, American Pioneer asserts that the court relied on an erroneous certification relating to the omitted policies. American Pioneer also asserts that the assumption agreement does not deal with "misrepresentation as to the amount and method of computation of the life and annuity reserves," but that express representations and express warranties were given in the agreement as to the reserves and must be given effect. American Pioneer seeks the amount of the reserve deficiency, plus interest by direct payment or set-off, and a set-off for the cost of collecting benefit overpayments and performing other services for the Receiver. The briefing is complete and the parties await the court's ruling.
Task Force Chair - Michael Marchman; Staff Contact - Joni Forsythe First National Life (AL)National Guardian Life Acquires Settlers
On September 17, the Virginia State Corporation Commission announced that Settlers Life had entered into a letter of intent with National Guardian Life Insurance Company, of Madison, Wisconsin, whereby National Guardian will acquire 100 percent of the common stock of Settlers and contribute sufficient capital to fully protect Settlers' policyowners.
Task Force Chair - Michael Marchman; Staff Contact -CALENDAR/CONFERENCE CALLS
September 30 Fidelity Bankers Task Force Meeting, Atlanta, GA
October 15 ULIC/CSO assumption agreement opt-out deadline