Docket No. 99-14 : Hearing Decision : Bureau of Insurance

STATE OF MAINE
DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
BUREAU OF INSURANCE

IN RE:	)
APPLICATION OF ASSOCIATED	)
HOSPITAL SERVICE OF MAINE	)
d/b/a BLUE CROSS AND BLUE	)
SHIELD OF MAINE TO CONVERT	)
TO A STOCK INSURER AND	)
VOLUNTARILY LIQUIDATE	)
AND DISSOLVE	)
	)
and	)	ORDER ON ATTORNEY GENERAL’S
	)	WINDING UP THE AFFAIRS OF
IN RE:	)	AHS LIQUIDATING TRUST AND
APPLICATION OF ANTHEM	)	CLOSING TAX RESERVE
HEALTH PLAN OF MAINE, INC.	)
TO ACQUIRE THE ASSETS OF	)
ASSOCIATED HOSPITAL	)
SERVICE OF MAINE d/b/a	)
BLUE CROSS AND BLUE SHIELD	)
OF MAINE AND RELATED	)
TRANSACTIONS	)
	)
Docket No. INS-99-14	)
(Consolidated)	)

The Superintendent ’ s May 25, 2000 Decision and Order ( “ Decision ” ) in these consolidated cases in part set certain conditions on the activities of the Liquidating Trust and Closing Tax Reserve.1 The Liquidating Trust ’ s initial term was three years according to paragraph 8 of the Decision, which also gave the Maine Health Access Foundation the authority to extend the term. The Maine Health Access Foundation, Inc. extended the term, according to information received from the Liquidating Trustee. See Attachment A. On August 2, 2006, the Bureau of Insurance sent a letter to the Liquidating Trustee asking that he report on the status of the Liquidating Trust and the Closing Tax Reserve, including current activities relating to their operation and when the Liquidating Trustee would conclude them. See Attachment B. The Liquidating Trustee ’ s September 1, 2006 response suggests that the activities of the Liquidating Trust and the Closing Tax will conclude between late 2006 and July 16, 2007. See Attachment C. Such activities include resolving certain income tax liabilities with the Internal Revenue Service.

The Superintendent ORDERS that the Liquidating Trustee shall:

within forty-five (45) days after entering into a final resolution of the Liquidating Trust ’ s income tax liabilities with the Internal Revenue Service, but not later than July 16, 2007, (a) settle the Liquidating Trust ’ s and Closing Tax Reserve ’ s affairs, including their respective expenses, assets and liabilities, and (b) distribute the remainder of their funds to the Maine Health Access Foundation, Inc. as provided in the Liquidating Trust Agreement; and
file with the Superintendent a final accounting and notice of final distribution.

The Superintendent reserves the right to take such action as he deems advisable should it appear that the affairs of the Liquidating Trust and the Closing Tax Reserves will not be settled and their remaining funds distributed to the Maine Health Access Foundation, Inc. by July 16, 2007.

¹ Terms used but not defined in this Order have the meanings given them in the May 25, 2000 Decision.

PER ORDER OF THE SUPERINTENDENT OF INSURANCE

DATED: October 5, 2006

________________________________
Alessandro A. Iuppa

Attachment A

April 22, 2004 letter from Liquidating Trustee

Attachment B

Bureau of Insurance August 2, 2006 letter

Attachment C

September 1, 2006 letter from the Liquidating Trustee