March 22, 1999
DIRECTOR’S APPROVAL OF ALHIGA’S
THE UNIVERSE LIFE INSURANCE COMPANY INSOLVENCY
By letter of February 22, 1999, the Alaska
Life and Health Insurance Guaranty Association (ALHIGA) has
requested the approval of the Director of Insurance to pay
certain covered claims on behalf of Alaska residents arising
from The Universe Life Insurance Company (Universe Life) insolvency.
In response to that request, the Director finds as follows:
1. Universe Life is a "member insurer"
of ALHIGA, as defined in AS 21.79.900(6). Universe Life
was licensed to sell health and life insurance in the
State of Alaska under Certificate of Authority #F-1036
dated July 1, 1973. [This Certificate was suspended by
order of the Director dated February 26, 1996.]
2. By order dated December 4, 1998, the
District Court of the Fourth Judicial District of the
State of Idaho, in and for the County of Ada, the Hon.
Thomas F. Neville presiding, issued an order Granting
Petition of Liquidation [of Universe Life] and Approving
Plan of Liquidation.
3. The Director has been advised by ALHIGA
that Universe Life has not been able to pay covered long
term health policy benefits since January 1, 1999.
4. Under AS 21.79.060(d), ALHIGA is required,
with approval of the Director, to take one of the following
actions if a member insurer becomes insolvent:
guarantee, assume, reinsure, or provide
the guarantee, assumption, or reinsurance of the covered
policies of the insolvent insurer held by resident;
assure payment to residents of the
contractual obligations of the insolvent insurer;
provide money, pledges, notes, guarantees
or other means necessary to discharge the insurer’s
duties under this subsection; or
with respect only to life and health
insurance policies, provide benefits and coverages
required under AS 21.79.060(e).
5. The National Organization of Life and
Health Guaranty Associations (NOLHGA) has negotiated a
Service Agreement with Duncanson & Holt Administrative
Services, Inc., (DHAS) whereby DHAS will process certain
covered claims of Universe Life long term care policies
on behalf of Participating Guaranty Association.
6. To meet its statutory obligations,
ALHIGA has agreed to become a Participating Guaranty Association
in the aforementioned Service Agreement. By participating
in this agreement, ALHIGA will help assure the payment
of claims involving Alaska residents.
THE DIRECTOR HEREBY ORDERS:
ALHIGA’S request to become a Participating
Guaranty Association in the Service Agreement with DHAS, or
directly pay covered claims on behalf of Alaska residents
who are Universe Life policy holders is APPROVED.
This order is effective March 22, 1999.