FIDELITY BANKERS LIFE INSURANCE COMPANY TRUST

 ALFRED W. GROSS

 PATRICK H. CANTILO

 TRUSTEE

DEPUTY TRUSTEE

December 1, 2000

 

 

Dear Policyholder:

This letter is a follow-up to our correspondence dated March 1, 2000, regarding payment of the Plan Dividend by the Fidelity Bankers Life Insurance Company Trust (the ATrust@). Your initial Plan Dividend payment is enclosed with this letter, along with a Plan Dividend Summary. The Plan Dividend Summary details the amount of the Plan Dividend the Trust still owes you pursuant to the Fidelity Bankers Life Insurance Company ("Fidelity Bankers") Rehabilitation Plan. The Summary also provides some information regarding the extent, if any, to which a guaranty association has contributed to the enclosed payment. You should consult your tax consultant for advice on all tax matters relating to your Plan Dividend payment.

The Trust is being liquidated and we anticipate that additional amounts will be distributed by the Trust during this liquidation process depending on the availability of funds during the Trust=s liquidation. The Trust will keep you advised as additional distributions become available if you have an unpaid Plan Dividend as reflected on the attached Plan Dividend Summary.

A state life and health insurance guaranty association ("GA") may have provided coverage for the Fidelity Bankers policyholders residing in your state of residence. Thirty-nine of those GAs (as listed below) entered into a "Supplementary Agreement" with the Deputy Receiver in 1993 to provide benefits to those policyholders. Those GAs and the Deputy Receiver recently entered into a settlement agreement under which the GAs provided money to the Deputy Receiver for distribution to certain former Fidelity Bankers policyholders who the GAs determined were eligible for additional funding for benefits. The Plan Dividend payment you received includes the money, if any, that any GA designated be distributed to you.

 

Alabama

Kentucky

New Hampshire

South Carolina

Alaska

Maine

New Jersey

South Dakota

Arkansas

Massachusetts

New Mexico

Tennessee

Connecticut

Michigan

North Carolina

Utah

Delaware

Minnesota

North Dakota

Vermont

Hawaii

Mississippi

Ohio

Virginia

Idaho

Missouri

Oklahoma

West Virginia

Illinois

Montana

Oregon

Wisconsin

Indiana

Nebraska

Pennsylvania

Wyoming

Iowa

Nevada

Rhode Island

 

 

If the enclosed payment has been funded in part by one of these guaranty associations, the Plan Dividend Summary identifies the portion so funded. If the Summary does not indicate such funding, the enclosed payment has been made entirely from assets of the Trust. The fact that the associations of states not listed above have not contributed to this Plan Dividend Distribution does not indicate that they have no legal liability to former Fidelity Bankers policyholders. Rather, the guaranty associations for the states listed above have recognized their statutory obligations and elected to discharge them by adding to the Plan Dividend payment. Policyholders whose policies are covered by non-participating Guaranty Associations may have rights against such Guaranty Associations under the applicable Guaranty Acts. If you believe that another guaranty association may be obligated to you (for example, because you resided in such other state at the time Fidelity Bankers was placed in receivership) you should contact your legal advisor, the regulators of such state, or the guaranty association for such state. Additional information on participating state Guaranty Associations is available by contacting the Trust at the telephone number, mailing address, or Internet e-mail address reflected in this letter. The Trust's web site (www.fblic.com) contains the telephone number of each state Guaranty Association so that you can contact the Guaranty Associations directly.

Policyholders should notify the Trust of any address changes or if this letter has been sent to an incorrect address. You may contact the Trust for additional information as follows: (1) by calling toll-free at 1-888-660-7083, (2) by writing to the Trust at P.O. Box 83438, Lincoln, NE 68501, or (3) by e-mailing the Trust at admin@fblic.com. Additional information on the receivership may also be viewed on-line at the Trust's Internet web site at www.fblic.com.

You may contact Hartford Life Insurance Company (AHartford Life@) if you currently have an in-force Hartford Life insurance policy at the following: (1) for annuity policies, by calling toll-free at 1-800-949-3601 or writing to Hartford Life, P.O. Box 5085, Hartford, CT 06102-5085, (2) for life insurance policies, by calling toll-free at 1-800-243-5433 or writing to National Service Center, P.O. Box 59179, Minneapolis, MN 55459-0179.

Please do not hesitate to contact the Trust (or Hartford Life if you maintain an in-force insurance policy) if you have any questions regarding your distribution and the information in this letter.

Sincerely yours,

 

 

Alfred W. Gross

Virginia Insurance Commissioner and

Trustee of the Fidelity Bankers Life Insurance Company Trust

FIDELITY BANKERS LIFE INSURANCE COMPANY TRUST

 ALFRED W. GROSS

PATRICK H. CANTILO

 TRUSTEE

 DEPUTY TRUSTEE

 

December 1, 2000

 

[Policyholder Name]

[Address 1]

[Address 2]

[City, State, Zip]

[Policy Number: xxxxxxx]

 

 

PLAN DIVIDEND PAYMENT SUMMARY

 

The summary below provides the Plan Dividend amounts due to you under the Rehabilitation Plan as a former policyholder of Fidelity Bankers Life Insurance Company:

 

Description

Amount

Total Plan Dividend Due

$1,000.00

Plan Dividend Payment 12/01/00

$453.00

Amount Paid by Guaranty Fund From [not applicable]

$100.00

Federal Tax Withheld

$100.00

PLAN DIVIDEND BALANCE

$347.00

 

If the PLAN DIVIDEND BALANCE shown is zero ($0.00), you are not due any further distributions from the Fidelity Bankers Life Insurance Company Trust (the "Trust") and none will be made to you in the future. If a PLAN DIVIDEND BALANCE greater than zero ($0.00) is shown, that amount is owed by the Trust and will be paid subject to availability of assets. The Plan Dividend distribution is subject to federal income tax withholding unless you made an affirmative election that tax withholding shall not apply to your distribution. If federal income tax has been withheld, it is noted in the above Plan Dividend Payment Summary. Should you have any questions regarding this information, please contact the Trust at the number given below.