Honorable John Oxendine, Commissioner
Georgia Department of Insurance

Re: Minutes of December 6, 2003 Meeting of the Reinsurance Task Force

Dear Commissioner Oxendine:

I have reviewed the draft copy of the minutes of the December 6, 2003 Reinsurance Task Force Meeting held in Anaheim, California. I do not feel that the language in the draft copy of the minutes accurately reflects my presentation to the Task Force.

I respectfully submit the following text as a more accurate depiction of my presentation to the Task Force:

Jeff Peterson (American Names Association) stated that his organization has data indicating that Lloyd’s Reinsurance Trust Fund is not in compliance with the current requirement that it contain collateral equal to 100% of outstanding liabilities. Commissioner Oxendine encouraged ANA to take this matter up with the Surplus Lines Task Force, as he felt that this was more of a surplus lines rather than a reinsurance issue.

Mr. Peterson also said that on three occassions in the past 1½ years the ANA had stated publicly in front of groups at which Lloyd’s executives and attorneys were present that Lloyd’s proposed reorganization and switch from a "market" to a "franchise" structure represents a planned abandonment by Lloyd’s of outstanding obligations for the policy years from January 1, 1993 to January 1, 2005. Peterson went on to say that thus far Lloyd’s had not publicly rebutted this claim. Commissioner Oxendine encouraged the ANA to ask the FSA for information clarifying this situation and confer back with the Task Force.

Peterson recommended that the Reinsurance Task Force adopt the two issues he raised as a charge for the 2004 year agenda of the Task Force.

Commissioner, please call me if you have any questions about my comments or submissions.

Sincerely,

Jeffrey C. Peterson
Executive Director

Go to pertinent section of draft minutes