General American news and timeline

October 2007

Judge Patricia S. Joyce signs an order authorizing a third distribution in the amount of approximately $150 million. Checks will be mailed on or about November 28, 2007.

June 2007

GAMHC and Metropolitan Life agree to settle the Article X Indemnification Claims, which had been presented to GAMHC in the amount of $124,000,000, for the sum of $39,000,000.

February 2007

GAMHC files a lawsuit in St. Louis City Circuit Court alleging that Goldman Sachs investment banking firm had conflicts of interest that damaged the value of the insurance holding company.  The court action seeks actual and punitive damages.  The outcome of the case will affect the timing and the amount of the final distribution.

January 2007

Judge Patricia S. Joyce takes over as Supervising Judge for GAMHC's case in Cole County.

January 2007

Douglas M. Ommen replaces W. Dale Finke as the Director of the Department of Insurance, Financial Institutions and Professional Registration, and as Statutory Liquidator of GAMHC.

December 2006

Judge Thomas J. Brown leaves the bench for private practice.

November 2006

Order is signed by Judge Thomas J. Brown acknowledging settlement of the case between GAMHC and the Morgan Stanley defendants.  The case is settled in the amount of $95,000,000.

July 2005

Final member objections are resolved and corresponding distribution checks mailed.

March 2005

GAMHC continued the initial distribution by mailing checks to eligible members whose addresses were located by GAMHC and whose objections were resolved.

A second distribution of $200 million was mailed to the eligible members in late March and early April.

February 2005

The SDL filed a report to the Court regarding GAMHC's operations.

January 2005

W. Dale Finke replaces Scott Lakin as the Director of the Department of Insurance and as the Liquidator of GAMHC.

October 2004

GAMHC continued the initial distribution by mailing checks to eligible members who were included in the August 2004 mailing.

August 2004

GAMHC re-mailed distribution notice packets to eligible members whose addresses were found through address research and the Distribution Call Center.

July 2004

GAMHC continued the initial distribution by mailing checks to eligible members whose objections were resolved by the special deputy liquidator’s (SDL) determination of claim letters.

June 2004

Missouri Department of Insurance Director Scott Lakin, as liquidator for GAMHC, has filed a lawsuit in St. Louis City Circuit Court alleging Morgan Stanley & Co. investment banking firm had conflicts of interest that damaged the value of the insurance holding company. The court action seeks $4 billion in actual and punitive damages. The final distribution of GAMHC's proceeds depends on the case's outcome.

March 2004

The SDL sent determination of claim letters to eligible members who objected.

February 2004

GAMHC continued the initial distribution by mailing checks to eligible members who received their notice packet in October 2003. The SDL filed an accounting to the court updating:

• GAMHC’s initial distribution of $1 billion to its eligible members.
• The three-year indemnity claims presented to the SDL by MetLife.
• The liquidator’s prosecution of Lakin v. KMPG, et al.
• The resolution of tax matters.
• The day-to-day administration of GAMHC.
  

October 2003

GAMHC re-mailed notice packets to eligible members whose addresses were found through address research and the Distribution Call Center.

September 2003

GAMHC began the initial distribution of $1 billion dollars to its eligible members. GAMHC did not send checks to eligible members if:

• They filed an objection; or
• Their notice packet was returned by the Post Office;
• Eligible members called the Distribution Call Center and notified GAMHC that they did not receive a notice packet.

GAMHC immediately began to look for updated addresses for the eligible members whose packets were returned.

July 2003

GAMHC's special deputy liquidator filed with the Cole County Circuit Court a report updating

1. the receivership's mailing to more than 300,000 members about their share of this fall's $1 billion distribution,
2. an interim accounting of objections filed,
3. appointment of Senior Judge Byron Kinder on MetLife's indemnity claims against GAMHC,
4. the receivership's case against the accounting firm of KPMG and
5. tax issues that will affect the final settlement of the liquidation.

January 2002

The Department of Insurance filed a liquidation petition in Cole County Circuit Court. (PDF 43 Kb)

December 2000

U.S. judge accepts class-action settlement on General American sales practices
Dec. 19, 2000 - Eastern District U.S. Judge Catherine D. Perry accepted a class-action settlement agreement that obligates General American Life Insurance Co. to pay an estimated $55 million to compensate policyholders for deceptive sales practices.

The proceedings, involving life policies from 1982 to 1996, also will settle an MDI market conduct action against the insurer. Perry's order covers all persons in the class except 54 policyholders who opted out and may pursue individual litigation. The order follows a Dec. 15 fairness hearing and the Aug. 24 announcement of a tentative settlement between MDI and General American.

The lawsuit and the MDI action do not affect, in any way, the distribution of $1.2 billion in proceeds from the January 2000 sale of General American Life and its affiliates to MetLife.

Cole County judge accepts distribution plan for GAMHC sale proceeds
Dec. 6, 2000 - Cole County Circuit Judge Thomas J. Brown issued an order setting rules on how to distribute $1.2 billion in proceeds from the sale of General American Mutual Holding Co.'s (GAMHC) assets to MetLife.

As a mutual company, GAMHC was owned by its policyholders, and those rendered eligible by Brown's ruling will share in the distribution of the sales proceeds and interest income, probably in the year 2003.

Brown's order provides that:

• Eligible policyholders as of Jan. 5, 2000 will participate in the distribution. This ruling removes the last doubts about the ability of policyholders to make changes or cash in their continuing General American Life Insurance Co. insurance contracts, if they so choose, without jeopardizing their GAMHC share.
• All eligible policyholders will receive a "fixed share" that equally divides 5 percent of the net sales proceeds. Eligible policyholders will receive so-called "variable shares" of the remainder of the funds under a complex formula that takes into account the number of policies held, their age, amount and other factors. Brown accepted the special deputy rehabilitator's proposal on the broad terms of the formula.
• Parties that want to legally challenge the terms of the sale or management decisions last year that precipitated the sale must file a "claim" by Jan. 31, 2001 or forfeit their right to do so. Brown approved a proposed claim form and public notice about the so-called "bar date."

The full text of Brown's order is available on the MDI site as are the claim form and public notice.

After a mailing to all 330,000 policyholders potentially affected, Brown only received eight written challenges or comments to the special deputy rehabilitator's proposals. A few were represented by counsel at the Nov. 16 public hearing on the proposals before Brown.

If you have further questions after reading material on the MDI Web site, please call 866-586-4625.

September 2000

There will be a hearing on November 16, 2000, focusing on the receiver's plans for a formula to distribute the $1.2 billion in sales proceeds and subsequent interest income from the January sale of GAMHC to MetLife. Also included is the receiver's proposals to make policyholders as of Jan. 5, 2000, eligible for a share of the proceeds, and other eligibility criteria.

The department's recent motion before the court, the court order and the notice.

Eligible policyholder-owners DO NOT have to file a claim or take any other action to receive their share of the sales proceeds and interest income.

August 2000 News Release

General American tentatively agree on $55 million settlement, fine for marketing violations on life policies

January 2000 News Release

MetLife, General American finalize sale; MDI begins investment of $1.2 billion

News releases on General American MHC and General American Life issues before January 2000 are located in the MDI news release archives.

Policyholders can also contact MDI at 800-726-7390.

Read the Stock Purchase Agreement (181 Kb) by and between General American Mutual Holding Company and Metropolitan Life Insurance Company (dated 8/26/1999).
Read the Amendment to the Stock Purchase Agreement (15 Kb) (dated 9/16/1999)

Read the full set of the MDI court filings.

Persons with questions for MDI about General American should Ask MDI.