Consulting Team Member

Douglas A Hartz

 

CURRICULUM VITAE

 

Douglas A Hartz

 

Professional Summary

 

Douglas Hartz is a consultant, federal receiver and special deputy receiver. He is the principal member of Insurance Regulatory Consulting Group (IRCG). IRCG focuses on insurance regulation, and the transactions and issues involving troubled or insolvent insurance companies. IRCG aims to employ the best available resources to provide better results for regulators and the consumers they protect in regard to troubled or insolvent insurance companies.

 

From 2005 to 2007, Mr. Hartz was of counsel with Bingham McCutchen – a premier law firm in the area of financial restructuring in both the bankruptcy and troubled insurer arenas. From 2001to 2005, he was the senior counsel for financial and insolvency regulation at the National Association of Insurance Commissioners (NAIC) supporting its Financial Condition (E) and Accreditation Standards (F) Committees, Subcommittees, Task Forces and Working Groups. Prior to the NAIC he served as receivership supervisor for the Missouri Department of Insurance (MDI) in regard to that state’s administrative supervisions, conservations, rehabilitations and liquidations. Since 1987, he has concentrated a unique combination of legal, accounting and system, education and experience toward improving the effective administration of insurance company supervisions and receivership proceedings. Prior to joining the MDI in 1996, he worked as a contract deputy receiver, assistant receiver or administrator serving the regulatory needs of several states in the areas of troubled insurers and receiverships.

 

Prior to 1987, Mr. Hartz worked for the Department of Defense in Foreign Military Sales in the Systems Development Branch of the Security Assistance Accounting Center and the congressionally mandated Centralized Accounting Test Project. This provided more than six years of in-depth experience in project management, systems design and administration, investigative accounting, contract and claims administration and adjudication, government relations and strategic planning.

 

In insurer receiverships, Mr. Hartz has supervised estates with billions of dollars in filed claims and in combined assets using a project management and team approach. As a contract receiver, this has been done with a mix of dozens of employees, independent contractors, and local counsel, and in Missouri, through supervision of several contract deputy receivers and lead counsel. Mr. Hartz has developed procedures for internal audit and accounting analysis (including reinsurance) leading to the recovery of millions of dollars in estate assets. He has developed a system of insurer liquidation accounting that has, in large part, served as the model for the NAIC Global Receivership Information Database financial reporting requirements. He has also led the development of claims and reinsurance tracking systems that meet fiduciary, statutory and guaranty fund requirements and coordinated several complex commercial litigation cases and disputed reinsurance programs. He has directed the closure of estates with long-tail claims and closed one estate within a year of the effective beginning of its liquidation proceedings.

 

Aside from his work in Missouri, Mr. Hartz has administered or assisted in the receivership proceedings of numerous insurers. Having worked on receivership matters in many states has provided a unique perspective in regard to the various ways in which different states approach insurer insolvency.

 

In relation to insurance regulation and receivership he has worked in numerous shorter engagements providing expert consulting and testimony. Further, he has worked in the prevention of many insurer receiverships, most of which were confidential administrative supervisions that cannot be disclosed. The most notable public supervision was the 1999 General American liquidity crisis. Here what would have been the largest receivership in history was avoided through intensive negotiations with creditors and a rapid sale of the entire ongoing enterprise. Although the ultimate parent, a mutual holding company, was placed into a prepackaged receivership to effect distributions to the owners (the policyholders of General American), the franchise value of the distressed enterprise was preserved for those owners to the greatest extent possible.

 

Administrations, Conservations, Rehabilitations or Liquidations

 

Intermountain Insurance
Farm & Ranch Life Insurance, Inc.
World Service Life of Colorado
Commercial General Insurance
West General Insurance
Southern American Insurance
Charter Risk Retention Group (RRG)
National Colonial Insurance
Early American Ins. Co.
Cadillac Ins. Co.
Professional Mutual Ins. Co.
Continental Security Life Ins. Co.
Missouri Provident Ins. Co.
OUM Professional Assurance Co.
Heart of America Fire & Casualty Co.
Transit Casualty Co.
Mission Reinsurance Corporation
Bel-Aire Ins. Co.
Commonwealth General Ins. Co.
Professional Mutual Ins. Co. RRG
M&M Companies
Lutheran Benevolent Ins. Exchange
Gen. Amer. Mutual Holding Co.
Capital Assurance RRG
Seaton Ins. Co.
 
Glacier General Assurance
Life of Montana Insurance
Great Global Assurance (Ancillary)
Oxford Indemnity Insurance
Laramie Insurance
Bonneville Life Insurance
Guaranty County Mutual Insurance
Pacific Marine of Alaska
American Universal
St. Louis Metro Prepaid Health Plan
Missouri National Life Ins. Co.
American Independence Life Ins. Co.
Protective Casualty Ins. Co.
Casualty Indemnity Exchange
St. Jude's Protective Association, Inc.
Holland America Ins. Co.
Integral Ins. Co.
Amer. Fin. Security Life Ins. Co.
Professional Medical Ins. Co.
U.S. Physicians Mutual RRG
Ozark Benefit Assoc. Life Ins. Co.
Inter. Fin. Services Life Ins. Co.
Highlands Ins. Co.
Ultimate Warranty Corp. (federal)
Stonewall Ins. Co.

 

Publications
  • Author, “The Reinsurance Evaluation Office – REO, and Collateral Requirements,” AIRROC Matters, Vol. 2, No. 3, 2007.
  • Author, “Ignoring Statutes, The Prime Directive and Debtor’s Rights,” The Insurance Receiver, Vol. 15, No. 1, 2006.
  • Co-author, “NAIC Insurer Receivership Model Act,” NAIC Model Laws, No. 555, 2005.
  • Co-author, “NAIC White Paper - Communication and Coordination Among Regulators, Receivers and Guaranty Associations: An Approach to A National State Based System,” NAIC, 2005
  • Author, “Handling Insolvencies, Troubled Companies and Receiverships,” Issues - NAIC, 2005.
  • Co-author, “NAIC Amicus in Koken v. Legion & Villanova Ins. Cos., Supreme Court of Pennsylvania, Nos. 204, 205, 211 & 212-MAP-2003,” (Scope of court’s oversight of liquidation of troubled insurers), 2003.
  • Author, “Update on Solvency (Insolvency) Reform” American Conference Institute - Insurer Insolvency, 2004.
  • Co-author, “NAIC Amicus in The Matter of the Liquidation of The Home Ins. Co., New Hampshire Supreme Court, No. 2004-0319,” 2004.
  • Author, “Handling Insolvencies, Troubled Companies And Receiverships,” Issues - NAIC, 2004.
  • Co-author, “NAIC Amicus in Koken v. Reliance Ins. Co., Supreme Court of Pennsylvania, No. 60-MAP-2004,” (Insured recovery of estate’s reinsurance) 2004.
  • Co-author, “New Perspectives on Insurer Insolvency,” The Insurance Receiver, Vol. 12, No. 4, 2003.
  • Co-author, “NAIC Amicus in Bowler v. United States and John Ashcroft, U.S. Supreme Court, No. 02-1124,” (Petition for certiorari on priorities of federal claims and guaranty association claims), 2003.
  • Co-author, “NAIC Amicus in Ann H. Womer Benjamin v. MetroHealth Systems, Supreme Court of Ohio, No. 02AP-243” (Separate roles of regulator and receiver), 2003.
  • Author, “Insolvencies and Receiverships Of Insurers And Troubled Companies,” Issues - NAIC, 2003.
  • Co-author, “NAIC Amicus in State Farm v. Hill, California Second Appellate District Division One, No. 168662,” (Deference to domiciliary regulator), 2003.
  • Co-author, “NAIC Amicus in Covington v. Ohio General Ins. Co., Supreme Court of Ohio, No. 01-1874,” (Priority of reinsurance claims), 2002.
  • Author, “Insolvencies and Receiverships Of Insurers And Troubled Companies,” Issues - NAIC, 2002.
  • Co-author, “NAIC Amicus in Koken v. Legion & Villanova Ins. Cos. Commonwealth Court of Pennsylvania, No. 182 & 183-MD-2002,” (Need for liquidation of troubled insurers), 2002.
  • Co-author, “NAIC Amicus in Covington v. Lucia, Court of Appeals, 10th Appellate District, State of Ohio, No. 02APE01-51,” (Arbitration provision in employment contract), 2002.
  • Author, “Creditor Committees, Constituencies and Constitutions,” The Insurance Receiver, Vol. 9, No. 4, 2000.
  • Co-author, “Financial Strength Chapter - Property-Casualty Insurance Accounting Handbook - Seventh Ed.,” Insurance Accounting and Systems Association, 1998.
  • Author, "President’s Columns," The Insurance Receiver, Vol. 6, No. 4 and Vol. 7, Nos. 1-3, 1997-8.
  • Author, "Other News & Notes (Federal and State Guaranty Claims)," The Insurance Receiver, Vol. 6, No. 3, 1997.
  • Author, "Analysis of the UK Method and Other Methods of Distribution in Insurer Liquidations," Mealey's Litigation Report: Insurance Insolvency, Vol. 9, No. 11, 1997.
  • Author, "Other News & Notes (Dividends and Advances)," The Insurance Receiver, Vol. 6, No. 2, 1997.
  • Author, "Other News & Notes (Interest on Advances)," The Insurance Receiver, Vol. 6, No. 1, 1997.
  • Author, "Other News & Notes (Claim Estimation)," The Insurance Receiver, Vol. 5, No. 3, 1996.
  • Author, "Other News & Notes (Interstate Insurance Receivership Compact)," The Insurance Receiver, Vol. 5, No. 2, 1996.

 

Affiliated Activities

 

In addition to the above-described direct experience in insurer receiverships, Mr. Hartz has co-authored the financial strength chapter in two editions of the Property-Casualty Insurance Accounting Handbook published by the Insurance Accounting and Systems Association.

 

He has also produced papers for and been a speaker for numerous forum sponsors on topics such as practical claims estimation, the regulatory goals of maintaining industry confidence and consumer protection, the claims process and reinsurance recovery in insurer insolvency and the Insurance Receivership Model Act.

 

Mr. Hartz has frequently worked on NAIC projects and working groups including work as:
  • Editor of the Data Processing Chapter and Author of the Closure of the Estate sections of the NAIC Receivers Handbook
  • Supplement Editor on the Handbook Chapters for Takeover and Administration; Data Processing; Accounting; Asset Recovery and Investigations; Legal Considerations and Closing Estates
  • Instructor on Managing Receiverships and Other Crises – NAIC Regulating for Solvency Program
  • Counsel and principal drafter regarding the Insurance Receivership Model Act (IRMA)
  • He has also served (in regulatory, special department representative and advisory capacities) on the NAIC working groups for Model Act Issues (especially as to provisions on asset recovery and interstate relations in the NAIC Model Insurer Rehabilitation and Liquidation Act predecessor to IRMA), Taking the Offense on Officers and Directors, Off-Set Issues, Guaranty Fund Issues, Uniform Data Standards (chair), Uniform Receivership Law (chair), Receivership Model Act Revision (chair), Assumption Reinsurance Model Act (chair), Financial Regulation Standards and Accreditation (counsel) and several other working groups of the NAIC Insolvency Subcommittee or Task Force.

 

Mr. Hartz has been a moderator or speaker at many NAIC Receivers or Insolvency Workshops on several topics (most with accompanying articles, discussion papers or outlines) including:
  • Real Estate and Mortgage Loan Management
  • Guaranty Fund Relations
  • Starting Receiverships
  • Detection of Fraud
  • Recovery from Accountants, Actuaries and Appraisers
  • Claims Handling
  • Recovery from Officers and Directors
  • Recovery from Affiliates
  • Closing Receiverships (twice)
  • Restructuring to Avoid Receivership

 

 

Mr. Hartz has received the designation Certified Insurance Receiver -Multiline Insurers (CIR-ML), by the International Association of Insurance Receivers (IAIR). He has been very involved in IAIR from its inception in 1991 working to increase the professionalism applied to insurer receiverships. He has served on IAIR’s Board of Directors from 1994-1999 and starting again in 2006 to date, was Vice President from 1995-1997, President in 1998 and Treasurer from 2006-2007. In furthering IAIR educational goals, he currently is co-chair of the Education Committee and has served as the moderator of the first Staff Training Seminar's Claims Sessions (October, 1992 - Denver), conducted sessions at the second and third Staff Training Seminars in Claims Handling and Financial Reporting and Accounting, and has otherwise worked through the Education Committee to research and teach improved methods for conducting receiverships in virtually all of the disciplines applicable to receiverships. In the area of life insurer receiverships, Mr. Hartz chaired the first IAIR Round Table focused on issues related to the administration and successful conclusion of life insurer receiverships. In addition, he has served on the IAIR By-laws, Membership, Nominations, and Elections & Meetings Committees, was Chair of the Publications Committee from 1994-1998 and drafted the original designation standards for IAIR.

 

Mr. Hartz has also been active in guaranty fund matters. He has been a speaker or panelist at National Conference of Insurance Guaranty Funds (NCIGF) meetings on the topics of Receiver Relations and Guaranty Fund Expenses and authored articles on the topics of special deposits, interstate relations, impacts of the Fabe Supreme Court case and contract deputy receivers. He has also worked with state legislative matters, including Colorado’s adoption of the NAIC Model Insurer Rehabilitation and Liquidation Act and Nebraska’s adoption of the Interstate Compact and Missouri’s ‘Fabe Cure’ revisions to the priority of distribution provisions of its insurer receivership statutes and review of the Uniform Receivership Law proposed for the Interstate Insurance Receivership Compact Commission.

 

Education

 

  • University of Denver, Juris Doctor, 1987
  • University of Colorado, Master of Business Administration, 1985
  • University of Colorado, Bachelor of Science in Business Administration, 1981

 

 

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