Trust Settlement

AIA Insurance, Inc. (“AIA”) as administrator on behalf of the Grain Growers Membership & Insurance Trust, American Soybean Association Membership & Insurance Trust, and the National Contract Poultry Growers Membership & Insurance Trust (“Trusts”), is extremely pleased to announce a positive end to ten years of litigation involving benefits under group health insurance policies issued by The Universe Life Insurance Company (“Universe”).

AIA and the Trusts filed claims against the Universe liquidation estate to recover surrender charges (SBA Benefits and Universal Benefits) which were withheld by the Liquidator, the Idaho Department of Insurance, when Universe policies were canceled in 1997 as part of a plan for rehabilitation of Universe.  AIA guided this case through the Idaho court system until a positive verdict about SBA benefits was rendered by the Supreme Court in 2007 (See Supreme Court Decision).   Unfortunately, the Supreme Court determined that insureds whose policies contained Universal Benefits were not entitled to any additional funds.   AIA then entered into lengthy settlement negotiations with the Liquidator and representatives of the National Organization of Life and Health Guaranty Association, acting on behalf of the State Guaranty Associations of twenty-four (24) states in which certificate holders under major medical policies purchased from Universe resided.  These negotiations were made more difficult because the total value of the claims substantially exceeded the value of the assets available in the liquidation estate to pay those claims.

In the fall of 2008, the parties reached a compromise agreement on how to divide the assets of the Universe estate.   A written settlement agreement and release (See Settlement Agreement) was signed by the parties, and the Idaho District Court approved the Settlement Agreement in an order dated November 25, 2008 (See Settlement Order).

AIA is disbursing the sum of $2.4 million, less attorneys’ fees and costs, to more than 2,800 commodity association members, who had a Universe major medical policy in effect in December 1997 when the policies were transferred to Trustmark Insurance Company.   The commodity associations that are members of the above Trusts will assist in locating past Universe insureds entitled to funds from this settlement.  John Taylor, President of AIA, was quoted after the November settlement agreement, “It has been a long, hard process to get these funds for Universe’s former insureds.  AIA wishes to thank the Trust Board members and our endorsing associations for their continued support over the many years it has taken to achieve this settlement, and the Idaho Department of Insurance for its cooperation in bringing this matter to a resolution beneficial to so many individuals.”