July 25, 2016
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IN THE CHANCERY COURT FOR THE STATE OF TENNESSEE TWENTIETH JUDICIAL DISTRICT, DAVIDSON COUNTY STATE OF TENNESSEE ) ex rei. JULIE MIX McPEAK, ) COMMISSIONER OF COMMERCE AND ) INSURANCE FOR THE STATE OF ) TENNESSEE, ) N~9? ) No: 03-295 (IV)\ I ) \ \ Petitioner, ) I ) v. ) ) THE RECIPROCAL ALLIANCE (RRG), a ) Tennessee Domiciled Insurance Company, ) ) ) Respondent. ) tt? ~ORDER GRANTING TRA RECEIVER'S MOTION (1) TO ACCEPT AND APPROVE NUMEROUS FINAL DETERMINATIONS AS TO ENUMERATED CLAIMS AND (2) TO APPROVE PAYMENTS OF APPROVED CLAIM AMOUNTS FOR APPROVED CLASS 5, CLASS 6 AND CLASS 7 CLAIMS Before the Court is a Motion filed on June 30, 2016, by the Commissioner of the Tennessee Department of Commerce and Insurance, in her capacity as Liquidator/Receiver ("Receiver") of The Reciprocal Alliance (RRG) in Liquidation ("TRA") and the TRA Special Deputy Receiver requesting the following relief: 1. Acceptance, as final, of claim determinations of the Class 5 and Class 8 claims set forth in Exhibit A (1 page in length) to this Order; 2. Approval of the amounts set forth as Approved Claim Amounts for the Class 5 and Class 8 claims set forth in Exhibit A (albeit that in some instances the Approved 1 Claim Amounts are set at $0.00) ; The Approved Claim Amounts for each listed claim is set forth in the column "NOD Approved Value" in Exhibit A. 1 3. Approval of 100% payment of the Approved Claim Amounts for the Class 5, Class 6 and Class 7 claims as set forth in Exhibit B (44 pages in length), Exhibit C (1 page in length) and Exhibit D (1 page in length) respectively; and 4. Entry of this Order as final regarding all matters addressed herein pursuant to Rule 54.02 Tenn.R.Civ.P. The Court has reviewed the efforts taken by the TRA Special Deputy Receiver to give notice of his June 30, 2016 Motion and finds those efforts sufficient. There have been no responses, objections or oppositions filed in relation to the pending Motion. Upon review of the Motion and upon the record in this proceeding as a whole, the Court finds the Motion well taken. The Court finds that (1) based upon the Motion, (2) based upon financial information filed by the TRA Special Deputy Receiver on June 28, 2016, (3) based upon the representation by the TRA Special Deputy Receiver that adequate reserves are being maintained for administrative expenses, and (4) based upon the fact that the only remaining unaddressed claims in the TRA Liquidation 2 Proceedings are Class 8 or Class 9 claims , payment of the Class 5, Class 6 and Class 7 approved claim amounts complies with T.C.A. §56-9-333(a). Accordingly, pursuant to T.C.A. §56-9-331, the Court accepts the claims listed in Exhibit A hereto as final claim determinations and approves the Approved Claim Amount for each claim as set forth in Exhibit A. 2 The TRA Special Deputy Receiver represents that the only remammg Clain1ants that have unaddressed claims in the TRA Liquidation proceedings have previously been classified as Class 8/Class 9 claims. See TRA's June 30, 2016 Motion at pp. 5-6. Notice of the June 30, 2016 Motion, and the reference of the Class 8/Class 9 classification of those claims as being final, was given to each affected Class 8/Class 9 claimant. No objection or response from any of those Class 8/Class 9 claimants, challenging these classifications as final, has been filed in relation to the June 30, 2016 Motion. 2 The Court further approves the payment of the amounts listed as the Approved Claim Amounts in Exhibit B (approved Class 5 claims), Exhibit C (approved Class 6 claims) and Exhibit D (approved Class 7 claims)3 in the following aggregate amounts: $662,442.07 (Aggregate Approved Class 5 Claim Amount) $ 73,457.51 (Aggregate Approved Class 6 Claim Amount) $ 51,712.34 (Aggregate Approved Class 7 Claim Amount) $787,611.92 To the extent that the TRA Special Deputy Receiver determines that any particular approved and finalized TRA Class 5, 6 or 7 Claim involves, or could involve, a Medicare/Medicaid lien law issue, the TRA Special Deputy Receiver may delay the distribution approved herein until he has assured himself, through his own investigation if necessary, that no Medicare/Medicaid lien law issues exist, or if they do, that such issues have been addressed. Each claimant who/which is requested to do so, must cooperate with the TRA Special Deputy Receiver in relation to this Medicare/Medicaid lien law issue. In the June 30, 2016 Motion, the TRA Special Deputy Receiver requests, pursuant to Rule 54.02 Tenn. R. Civ. P., that the Order entered in relation to the Motion be entered as a final order in relation to all matters addressed therein. The Court finds that this Order does not address all matters involved in the TRA Liquidation proceeding. The Court further finds that the TRA Special Deputy Receiver will rely upon the rulings contained in this Order in taking actions such as payment of the distributions as approved herein. In doing so, the TRA Liquidation Estate needs certainty and finality as to the Court's rulings. For that reason, and there being no just reason for delay, the Court 3 Again, the approved claim amounts for each claim (albeit at times $0.00) are set forth in the "NOD Approved Claim" column of each exhibit. 3 expressly instructs the Clerk and Master to enter this Order as a final order as to all matters contained herein. Rule 54.02 Tenn. R. Civ. P. Finally, given the broad notice provided in relation to the Motion (see June 30, 2016 Motion at pp. 6-7) and given the lack of responses or objections to the Motion and no appearance in opposition at the noticed July 25, 2016 hearing of the Motion, the Court deems it sufficient notice to those affected for this Order, once entered, to be posted on the Tennessee Department of Commerce and Insurance website at http://www.tn.gov/commerce/article/ins-insurance-company-actions. The TRA Special Deputy Receiver is to post this Order in that fashion as soon as practicable after the entry of this Order. To the extent that the Court places reliance upon the finality of the classifications of the Class 8 and Class 9 claimants (see footnote 2, infra), the TRA Special Deputy Receiver is to provide a copy of this Order to those Class 8 and Class 9 claimants as soon as practicable after its entry on the docket. It is so ORDERED this the g of July, 2016. u , PR#5780 A W GROUP, PLC 333 Union Street, Suite 300 Nashville, TN 37201 615.254.9146 Counsel for the TRA Receiver and TRA Special Deputy Receiver 4 CERTIFICATE OF SERVICE This is to certify: 1) that a true and correct copy of~foregoing has been delivered by U.S. Mail, First Class postage prepaid, to the following on thisd.2_~y of July, 2016: Sarah A. Hiestand, Senior Counsel Office of the Attorney General State of Tennessee Post Office Box 20207 Nashville, TN 37202-0207 Patrick H. Cantilo Cantilo & Bennett, LLP 11401 Century Oaks Terrace, Suite 300 Austin, TX 78758 (Counsel to the Virginia Deputy Receiver- ROAJTRG) Phyllis K. Cessna, M.A. 249 Miranda Court Martinsburg, West Virginia 25403 Belinda Skloss 22 Ranchview Huntsville, Texas 77320 K.eith Phillips, Esq. Phillips & Fleckenstein 311 South Boulevard Richmond, VA 23220 (former Trustee for Physicians Management Corporation - Class 8) Healthcare Providers, Inc. c/o Larry Bourne 116 W oodgreen Crossing Madison, MS 3 911 0 (Health Providers, Inc. - Class 8) Healthcare Providers, Inc. c/o George Q. Evans, Esq. 606 Meadowbrook Road Jackson,MS 39206 (Health Providers, Inc. - Class 8) 5 COPIC Insurance Co. c/o Mark Fogg, Esq. General Counsel 7 451 Lowry Blvd. Denver, CO 80230 (COPIC Insurance- Class 8) ACA Insurance Trust Attn: Paul Nelson, Executive Director 5 999 Stevenson A venue Alexandria, VA 22304 (ACA Insurance Trust- Class 9) 2) that a true and correct copy of the foregoing will be posted on the Tennessee Department of Commerce and Insurance website [http://www.tn.gov/commerce/article/ins-insurance-company actions] as soon as practicable after entry of same upon t e cket. 6 TRA -EXHIBIT A CLASS 5 AND CLASS 8 CLAIMS . '• .... POC Control. .. NOD. APPROVED: .. .; Number·· CLAIMANT t:'J.AME . · . ':CLAIMANT ADDRESS · · .. ·. VALUE CLASS RECIPROCAL OF AMERICA 4200 INNSLAKE DRIVE, GLEN 0002190 "ROA'' ALLEN, VA 23060 $46,311.00 5 THE RECIPRCAL GROUP, IN 4200 INNSLAKE DRIVE, GLEN 0002161 RECIVERSHIP ("TRG") ALLEN, VA 23060 $356.00 5 THE RECIPROCAL GROUP 4200 INNSLAKE DRIVE, GLEN 0002163 ("TRG") ALLEN I VA 23060 $1,486.00 5 249 MIRANDA COURT, 0000463 PHYLLIS K. CESSNA MARTINSBURG, WV 25403 $0.00 5 22 RANCHVIEW DRIVE, 0001575(A) BELINDA SKLOSS HUNTSVILLE, TX 77320 $200.00 5 RECIPROCAL OF AMERICA THROUGH ASSIGN. FIRST 4200 INNSLAKE DRIVE, GLEN 0002184 VIRGINIA REINSURANCE, LTD. ALLEN I VA 23060 0 8 RECIPROCAL OF AMERICA, IN 4200 INNSLAKE DRIVE, GLEN 0002162 RECEIVERSHIP "ROA'' ALLEN I VA 23060 0 8 \0 - ·.,, C"') co EXHIBIT Page 1 TRA EXHIBIT B CLASS 5 CLAIMS POC ... NOD Control : ·APPROVED Number CLAIMANT NAME . CLAIMANT ADDRESS VALUE CLASS 2001 S. SHIELDS ST. #203, 0000001 CAROLE FREEMOLE FORT COLLINS, CO 80526 $95.63 5 0000002 CHERYL TREINEN PO BOX 2001, GREAT FALLS, MT 59403 l $141.65 5 1 .....-. ... 7066 DEERWOOD TRAIL, \ j~ ~ [:!r- 0000003 GERALD KAPLAN WEST BLOOMFIELD, Ml 48323 '\ 5~i!(~;., \ $.1A3.6~ ·w - 'o\:·l! NORTHEAST FLORIDA 1::::: f~~~ ;~~~ ~ \t_',J;,>~ 0000004 STATE HOSPITAL 7 487 S SR 121, MACCLENNY, FL 32063 $JJ9.98 5 ~PI~.t ;~'L ~ ':>.