Statement of Statutory Accounting Principle No. 35 – Accounting for Guaranty Fund and Other Assessments (finalized March 2000 by the NAIC)
Issue Paper No. 35 – Accounting for Guaranty Fund and Other Assessments (finalized December 1999 by the NAIC)
SOP 97-3 – Accounting by the Insurance and Other Enterprises for Guaranty Fund and Certain Other Insurance Related Assessments (released December 1996 by the AICPA)
The National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) projects the potential costs to provide coverage for each guaranty association affected by the insolvency of a member insurance company licensed in multiple states (i.e. a multi-state insolvency) . You may find this insolvency cost information at the NOLHGA website on the Insolvency Costs page.
TEXAS ONLY INSOLVENCIES
The Association provides estimates of the costs to provide coverage for insolvent member insurance companies licensed only in Texas. At this time, the Association has remaining assessment needs for one other Texas only insolvency, Memorial Service Life Insurance Company. The insolvency cost information for this company is included with the NOLHGA insolvency cost information for its affiliated company, Lincoln Memorial Life Insurance Company. Please use the link shown above to find the Memorial Service Life Insurance Company insolvency cost information on the NOLHGA website.
CLASS B ASSESSMENT
On May 2, 2011, the Association called a $950,000 Class B Assessment for its costs and expenses related to the Texas only insolvency, Texas Memorial Life Insurance Company. It is anticipated that this will be the only assessment for this insolvent company.
On May 2, 2011, the Association called a $62 million Class B Assessment for its costs and expenses for the Memorial Service Life Insurance Company insolvency. The Association previously called a $30 million Class B Assessment for this insolvency in 2009. Additional Class B Assessments may be called for the Memorial Service Life Insurance Company insolvency.