|
ORDER R98-04
DIRECTOR'S APPROVAL OF ALHIGA'S RESPONSE
TO AMERICAN WESTERN LIFE INSOLVENCY
May 28, 1998
By letter of April 27, 1998, the Alaska Life and Health Insurance
Guarantee Association (ALHIGA) requested the approval of the
Director of the Division of Insurance to pay certain covered
claims to and on behalf of Alaska residents arising from the
American Western Life Insurance Company (AWL) insolvency.
In response to that request, the Director finds as follows:
BACKGROUND
1. AWL is a "member insurer" of ALHIGA, as defined
in AS 21.79.900(6). AWL was licensed to sell health and life
insurance in the State of Alaska under Certificate of Authority
#F-0679, dated November 3, 1964. This Certificate was suspended
by order of the Director dated June 18, 1997.
2. By order dated June 18, 1997, the director determined
AWL was impaired. AWL has been subsequently declared insolvent
by an order of Declaration of Insolvency and Liquidation entered
on August 18, 1997 by Judge Pat B. Brian, Third Judicial District
Court for the State of Utah.
3. AWL has ceased paying claims of AWL policyholders residing
in Alaska.
4. The director has been advised by ALHIGA that the AWL estate
has submitted claims to ALHIGA for payment, consisting of
invoices for medical services provided to Alaska resident
AWL policyholder and that such invoices have otherwise gone
unpaid.
5. Under AS 21.79.060(d), ALHIGA is required, with the approval
of the Director, to take one of the following actions if a
member insurer becomes insolvent:
(1) guarantee, assume, reinsure, or provide for the guarantee,
assumption, or reinsurance of the covered policies of the
insolvent insurer held by residents;
(2) assure payment to residents of the contractual obligations
of the insolvent insurer;
(3) provide money, pledges, notes, guarantees or other means
necessary to discharge the insurer's duties under this subsection;
or
(4) with respect only to life and health insurance policies,
provide benefits and coverages required under AS 21.79.060(e).
THE DIRECTOR HEREBY ORDERS:
ALHIGA's request to pay covered claims to or on behalf of
Alaska residents who are AWL policyholders is approved.
This order is effective May 28, 1998
|
