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CONFERENCE AGENDAWEDNESDAY, JANUARY 29, 2014

6:00 pm - 7:30 pm Bon Voyage Party Opening Night Reception

THURSDAY, JANUARY 30, 2014

7:15 am - 8:00 am Filling the Tank Registration & Continental Breakfast

8:00 am - 8:15 am Getting the Kids in the Car Welcome and Introduction

Bruce W. Gilbert - Executive Director, Nevada Insurance Guaranty Association Douglas A. Hartz - Principal, Insurance Regulatory Consulting Group

With so much happening in the insurance markets and how the industry, its insurers and other industry participants are regulated, this program aims to study how these shifts and potential changes can best be understood to improve outcomes for consumers, the industry, its insurers and other participants impacted by the troubled insurer and receivership processes in the natural life cycle of insurers. The main focus of the program will be how to shorten the sometimes long and winding road of the troubled insurer and receivership processes. This short session will explain our route, “get the kids in the car,” and get our road trip going.

8:15 am - 9:15 am How Do You Program This #!@!% GPS?? Planning the Trip through Accounting, Reserving, International Considerations and Other Preceding Matters

Michelle J. Avery, CPA, CFF - Managing Director, EVP, Veris Consulting, Inc. TBA

There has been great improvement in the early detection of hazardous conditions in insurers following the GAO Reports of the late 1980’s, but will these improvements ameliorate adverse consequences to policyholders, the market and those who regulate it, or have unintended consequences? How may some of the changes in accounting, reserving and the surveillance of insurers and related entities impact the troubled insurer and receivership processes? This session will explore how regulatory changes (or proposed developments) in regulation, influenced by the Financial Accounting Standards Board (“FASB”), Financial Stability Board (“FSB”) and the International Association of Insurance Supervisors (“IAIS”), may impact receivers.

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CONFERENCE AGENDATHURSDAY, JANUARY 30, 2014

9:15 am - 10:15 am When You Come to the Fork in the Road, Take It Financial Guaranty Ins. Co. (“FGIC”) Resemblances and Differences from the Usual Course

William Latza - Partner, Stroock & Stroock & Lavan, LLP Harold Horwich - Partner, Bingham McCutchen, LLP

From the risk-based capital regime, through risk-focused examination to the Own Risk Self-Assessment (“ORSA”), regulators today have a wealth of tools to identify and monitor risks to insurer solvency. Yet the regulatory system remains biased toward viewing insolvency as regulatory failure, with the consequence that when policyholders are most in need, they are abandoned entirely to the court-supervised receivership process. However, if one views insurer failure as simply part of the natural life cycle of insurers, then one sees many opportunities for resolving troubled insurers in ways less injurious to policyholders and the public than conventional receivership proceedings. Whether the regulatory process is used to prepare an insurer for formal receivership, or formal receivership is employed in aid of a restructuring approved by regulators, more than twenty years of progress has resulted in a state-based system more able than ever before to protect policyholders, claimants and beneficiaries threatened by insurer insolvency. This session will explore these matters, primarily using the FGIC rehabilitation as a practical illustration.

10:15 am - 10:30 am Pit Stop One NETWORKING BREAK

10:30 am - 11:30 am Twists and Turns on the Long and Winding Road Captives, RRGs, and Special Purpose Vehicles… Leading to Your Door

Bret Barrett - Deputy Commissioner, Utah Insurance Department Douglas Hertlein - Partner, Allen, Kuehnle, Stovall & Neuman LLP

Captives, Risk Retention Groups (“RRGs”), the Non-admitted and Reinsurance Reform Act (“NRRA”), self-insurance and special purpose vehicles are all becoming more prominent in the insurance markets (P&C and now, L&H) and in regulatory discussions. This session will travel the road of what is different about how captives and RRGs are regulated, how they are subject to financial surveillance, and how troubled companies and receiverships are addressed in the absence of guaranty association coverage.

11:45 am - 1:00 pm Dining at the Drive-In Lunch and Luncheon Speaker

Darren Ellingson, Esq. - Deputy Director, Arizona Department of Insurance

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CONFERENCE AGENDATHURSDAY, JANUARY 30, 2014

1:15 pm - 2:15 pm Did They Cover THIS in Driver’s Ed? ELNY and the Lessons of Challenging Insolvencies

Peter Gallanis – President, NOLGHA

Guaranty Association Benefits Company (“GABC”) was formed by the member life and health Guaranty Associations of NOLHGA affected by the liquidation of ELNY. GABC has been funded with estate assets of ELNY, immediate upfront financial contributions and long-term benefit guarantees from the Guaranty Associations that committed to participate in the Restructuring Agreement, and additional voluntary financial support from certain life insurance companies (both upfront funding and back-end benefit payment guaranties). GABC has assumed substantially all of ELNY’s liabilities and will make payments to ELNY payees and beneficiaries. This session will cover various aspects of the ELNY resolution process and lessons learned from some of the more challenging insurer receivership cases of the modern era.

2:15 pm - 3:15 pm Card Declined? Here Try This One Hard Asset Issues That Keep Estates from Being Closed

Peter Kane - President / CEO, Kane Corporation Michael B. Flynn - Managing Director, AlixPartners Denis O’Connor – Managing Director, AlixPartners

Hard asset issues can be the matters keeping an estate open. Often this involves real estate, mortgage portfolios, partnership interests and whatever else could not be easily sold to provide liquidity (too often, more for management, than for the insurer) as the insurer was entering the zone of insolvency. These “dogs of investments” can often be of greater value to an estate than they could ever have been to the insurer while it was ongoing. This session will cover how to spot these issues and deal with them from the start (so that they are not the matter keeping an estate open) and how the receivership process creates a different context and entails powers to get better values.

3:15 pm - 3:30 pm Pit Stop Two NETWORKING BREAK

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CONFERENCE AGENDATHURSDAY, JANUARY 30, 2014

3:30 pm - 4:30 pm Now What?!! Hold Up Issues: Construction Defect, Minors and Other Toxic & Mass Torts Is Fracking the Next Mass Mess?

Michael A. Ludwig - Partner, Jones, Skelton & Hochuli, P.L.C. Rand Chritton - Partner, Archer Norris, P.L.C. GailAnn Y. Stargardter - Partner, Archer Norris, P.L.C.

Claims that take a long time to first be reported and claims that take a long time to be finalized have been the bane of both receivers trying to close estates and guaranty associations trying to close files and get their payments. Construction defect, mass tort and minors’ claims are just a few varieties of these claims. While these claims can be difficult for a “live” company to handle, they can be particularly troublesome when trying to expedite the closing of an estate. Insurance claims by their nature, especially when the insurer is in receivership, take longer to resolve than claims in other business or bankruptcy settings. This session will cover some of the problems encountered when handling these claims, and how these problems have been and can be best solved.

4:30 pm - 5:30 pm Is It Time For A New Road Map? Receivership Offices Streamline The Process

James Kennedy - Counsel to the Receiver, Texas Department of Insurance Christopher Fuller - Principal, The Fuller Law Group, Austin, Texas Steve Durish - President, Ohio & West Virginia Insurance Guaranty Associations Jacqueline Rixen - Principal, Law Office of Jacqueline Rixen

There are many procedures that can be done to expedite the closure of a receivership estate. These range all the way from beginning the process in the right form of proceeding, to dealing with issues that may delay the proceeding up front at the beginning, to setting up mechanisms to handle the long-tail matters so that the core proceeding can be closed. This session will cover how Florida has addressed these matters and how these matters can be addressed in many other situations.

6:00 pm - 7:30 pm Recharging the Battery Cocktail Reception

FRIDAY, JANUARY 31, 2014

7:30 am - 8:00 am Trans-Continental Breakfast

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CONFERENCE AGENDAFRIDAY, JANUARY 31, 2014

8:00 am - 9:00 am License and Title, Please The Trouble with Title Insurance

Lynda Loomis - Chief Deputy Liquidator, Office of the Ohio Insurance Liquidator Burnie Burner - Member, Mitchell Williams Law-Austin Office

While the national discussion regarding the need for title insurance guaranty fund coverage continues to evolve, a comparison of past title insurer insolvencies contrasts the outcomes for consumers when there is guaranty fund coverage and when there is not. There are great examples of how matters proceed when there is a guaranty fund to cover both the underwriters and the agents. More often, there is no guaranty fund coverage. Whether or not there is guaranty fund coverage, there are some common issues in title insolvencies that present unique challenges, and obstacles, in the receivership process. This session will cover how these difficulties (like claims arising 50 years after the issuance of the policy) are addressed, how long-tail these matters can be, and how closure is ultimately achieved.

9:00 am - 10:15 am Do You Know Why I Pulled You Over? Guidance from the Bench - Judicial Perspectives on Insurance Receiverships

Moderator Joel Glover – Partner, Lewis Roca Rothgerber, LLP

Panelists The Honorable Tom Collins – Texas Receivership Special Master The Honorable Louis F. Rosenberg – Circuit Judge, Marion County, Indiana

The perspectives and priorities of the Judge are critical aspects of any insurance insolvency. This Panel will provide direct insights from Special Master Collins and Judge Rosenberg based on years of receivership experience regarding important topics such as reporting to the Court; understanding what information the Judge wants; handling disputes; protecting consumers; and ending a proceeding.

10:15 am - 10:30 am Pit Stop Three NETWORKING BREAK

10:30 am - 11:30 am I Thought YOU Packed That! Records Retention: Why Where It Has Been Matters

Rowe Snider - Partner, Locke Lord, LLP

Record maintenance and retention is an important function of receivers and guaranty funds. This can be aided by technological advances, but can also be especially challenging in the digital age. Many of the on-going challenges become even more urgent with the closure of the estate, but, as with many of the topics on this trip, it may be more manageable if one begins with the end in mind. This session will examine these issues and suggest strategies that may help bring the journey to a more comfortable and timely end.

11:30 am - 11:45 am Do You Want to See the Slides From Our Trip? Program Wrap Up