Mid-Continent Life (OK)

Judge Approves Mid-Continent Assumption

Oklahoma County District Judge Noma Gurich on September 26 confirmed the assumption of Mid-Continent Life policies by American Fidelity Assurance Company. Gurich called the plan the best for policyholders. The assumption was the major component of the proposed rehabilitation plan filed with the court by Oklahoma Insurance Commissioner Carroll Fisher. The most significant feature of the assumption is American Fidelity's 17-year guarantee that premiums on Mid-Continent's Extra Life policies will remain level. The assumption does not provide for any guaranty association funding.

The judge's ruling came after six days of hearings on the plan. While the plan was initially opposed by several of those who submitted competing proposals, and by a group of would-be class-action plaintiff policyholders, the assumption plan was approved unopposed.

In connection with the plan approval, a group of class action plaintiff policyholders reached a settlement with Florida Progress, Mid-Continent's owner. As a result of the settlement, the policyholder group withdrew all objections to the proposed rehabilitation plan, and will provide a release of Florida Progress from any liability in connection with the Mid-Continent failure. In return, Florida Progress agreed to contribute $17.5 million to a fund for the benefit of Mid-Continent policyholders, and an unspecified amount to cover the plaintiff's legal fees.

Task Force Chair -Sonya Ekart;   Staff Contact - Bill O'Sullivan Thunor Trust Companies

GAO Report Available

The U. S. General Accounting Office has released a report and testimony regarding the Thunor Trust insolvencies. To retrieve a copy of the report or the testimony, go to 'www.gao.gov', click on 'GAO Reports', click on 'Today's Reports', and then click on 'September 19, 2000'. For the report, click on 'GAO/GGD-00-198'. For the testimony, click on 'GAO/T-GGD-00-209'.

If you do not have access to the Internet and would like a copy of the report or testimony, please call Mary Ellen Cappetta at 703-787-4114.

Task Force Chair -Chuck LaShelle;   Staff Contact - Executive Life (CA)

Aurora Contact Information

Please be advised that effective October 12th, the main telephone numbers for Aurora will change to (310) 264-3200 or (800) 315-2652. To reach specific Aurora departments by telephone or fax, please contact Meg Melusen at NOLHGA for the updated number.

Task Force Chair -Art Dummer;   Staff Contact -

ETC

Annual meeting Representative Designation Forms

The deadline for submission of representative designation forms is October 4. All members, whether choosing to vote by proxy or not, must submit the form. Forms should be submitted to Holly Wilding at NOLHGA.

Joint NOLHGA, NCIGF, IAIR Seminar

Registration for the November 15-17 Joint Seminar (NOLHGA, NCIGF, and IAIR) is now open to all those interested in attending. Due to meeting room constraints on the number of participants, NOLHGA members are urged to register as soon as possible.

Directory Updates

The new phone number for the Texas Association is 512.476.5101. In addition, the new contact information for Ernie Porter, a director of the New Mexico Association, is 2390 Osprey Dr., Redmond, OR 97756. The new fax and phone for Mr. Porter is 541.548.9897.

CALENDAR/CONFERENCE CALLS

Oct. 3A merican Chambers Task Force meeting, Chicago, IL
Oct. 9 NOLHGA Board of Directors' Meeting, Orlando, FL
Oct. 9 State Board Chairs Conference, Orlando, FL
Oct. 9-11NOLHGA Annual Meeting, Orlando, FL