Inter-American Insurance Company of Illinois (Ill.)
Inter-American Estate Closes
On September 16, 2003, the Illinois liquidation court entered an order granting the liquidator's petition to pay the final dividend out of Inter-American of Illinois and to close the estate.
As reported in the August 1 NOLHGA Wire, the liquidator's petition to close was filed on July 22 and heard on July 30. At that time, the court approved the liquidator's recommendations with respect to claim amounts and authorized distribution of a final dividend on all claims against the estate, with the exception of a group of six disputed claims. Those six claims had been listed in the petition and accompanying schedules as uncovered policy claims but had been paid by the Pennsylvania guaranty association. The court ordered that funds allocable to those claims not be distributed until the appropriate recipient was determined. The matter was scheduled for a status hearing on September 16. In the interim, the disputed claims were resolved with an agreement to release the funds to the Pennsylvania guaranty association.
At the September 16 hearing, the parties presented the agreement resolving the outstanding claims. The court then entered the order authorizing the final dividend to the Pennsylvania association, dissolving Inter-American's corporate charter, discharging the liquidator, closing the estate, and terminating the liquidation proceedings.
A copy of the September 16 closing order will be posted to the NOLHGA IRC. You may also contact Aimee Frye at 703.787.4115 or [email protected] to request a copy.
Task Force Chair - William E. Falck; Staff Contact - Joni Forsythe Washington Security Life Insurance Company (Mo.)Liquidation Court Sets Claims Bar Date
On May 19, 2003, a Missouri circuit court entered a final order of liquidation to dissolve Washington Security Life Insurance Company. In conjunction with the liquidation order, the court set a claims bar date of March 1, 2004. According to the Missouri Department of Insurance, the liquidation is unlikely to require any action on the part of the state guaranty associations because the Missouri-domiciled company has no policyholders and no known claims. After March 1, 2004, all claims against Washington Security Life will be barred, and the remaining capital will be returned to the company’s shareholders.
Staff Contact - National Heritage Life Insurance Company (Del.)Jury Returns Defense Verdict in Asset Recovery Matter
On September 19, 2003, a Florida jury returned a verdict for the defense following the three-week civil trial against a stock brokerage house and broker for their alleged role in the scheme that allowed NHL's looters to take control of the insurance company, resulting in millions of dollars in damages. Although the receiver asserted a variety of civil claims against the defendants, including negligent misrepresentation, civil conspiracy, and common law fraud, at trial the issues were narrowed to require a demonstration of actual fraud. Despite skillful efforts on the part of receiver's counsel, the jury did not find the actions of the defendants rose to the level of actual fraud.
Task Force Chair – Dan Orth; Staff Contact -"Shenanigans" at NOLHGA's Annual Meeting
Dr. Howard M. Schilit, author of Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports, will speak on "Detecting Financial Shenanigans" at NOLHGA's 20th Annual Meeting in October. Dr. Schilit, who was referred to as the "Sherlock Holmes of accounting" in a featured article in Business Week, serves as an advisor to 4,300 professionals at approximately 500 institutional investment firms. His research organization, the Center for Financial Research and Analysis, alerts institutional investors and others of companies with deteriorating operational cash flows, aggressive accounting policies, and inadequate control environments.
NOLHGA's 20th Annual Meeting, which will be held October 28 and 29, 2003, at the Four Seasons Dallas at Las Colinas, will also feature presentations from the presidents of the NAIC and ACLI as well as presentations on topics such as the impact of the capital markets on the insurance industry, variable annuities, and more. The meeting Web page, which offers hotel and meeting information as well as a registration form, can be found at www.nolhga.com/meetings/home.cfm.
Staff Contact - Sean McKennaRecommendations for New NOLHGA Board Members Sought
On September 5, 2003, a letter from NOLHGA Chair Tom Potter was sent to the administrators and boards of directors of all state life and health insurance guaranty associations soliciting recommendations for nominees to replace NOLHGA Board members whose terms expire this year and in the future. Recommendations should be submitted in confidence to Holly Wilding by mail, fax (703.481.5209), phone (703.787.4111), or e-mail ([email protected]) by September 26, 2003.
Staff Contact -Texas GA Relocates Offices
The Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association has moved its offices. Effective September 29, 2003, the association's new address is:
Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association
6504 Bridge Point Parkway
Suite 450
Austin, TX 78730
The association's primary phone numbers have not changed. They remain 800.982.6362, 512.476.5101, and 512.472.1470 (fax).
Staff Contact -