Topic: Insolvency

On October 27, the NAIC Model Law (E) Working Group released an exposure draft of its proposed revisions to the Life and Health Guaranty Association Model Act (#520), intended to address the financial challenges of Long Term Care (“LTC”) insurance insolvencies, such as this year’s Penn Treaty liquidation, and to bring health maintenance organizations (“HMOs”) within the Guaranty Associations’ protection and assessment base.  The Working Group is chaired by James Kennedy of the Texas Department of Insurance.  The proposed revisions are the product of an intense effort by a drafting group that was formed in July. With a 30 day exposure period, comments by interested parties are due by November 27, 2017.