Henkimaa

For other news stories & posts on this topic, see my bibliography on all things Sullygate.

Sullygate is the nickname that’s been coined (possibly by me — I’m not really sure) for all the stuff surrounding former Anchorage Mayor George M. Sullivan’s “life insurance policy” through the Municipality of Anchorage, which culminated in a February 16 vote by the Anchorage Assembly to pay out $193,000 from public monies to a trust headed up by Sullivan’s son, current Mayor Dan Sullivan.

This is a very heavily annotated timeline of the Sullivan “life insurance” issue based on sources that have so far been made public. A big thanks to Sean Cockerham and David Hulen of the Anchorage Daily News, who made public records requests in the process of preparing Sean’s really fine investigative piece,  and posted the documents at the ADN website for the benefit of concerned Anchorage citizens like me.

This is a really long post; I was happy to learn that WordPress (my blogging software) supports internal navigational links: these will help you get around.

1967 | 1982 | 1984 | 1987 | 1992 | 1994 | 1995 | 2000 | 2002 | 2003 | 2007 | 2009 | 2010 | References

Please comment, especially if you find errors or can clarify some of my own questions.  This sentence is the very last sentence I’m writing in this post: it is to say that I’ve been at this a very long time and my mind’s too muddled by tiredness now to even proofread — so really, please let me know if you find errors so I can fix ‘em. — Mel

A later note, 3/22/2010: Corrections from this date on (mostly thanks to corrections made by readers) are marked with strikeout for deleted text & underline for added text. Thanks for your corrections, readers!

1967

George Sullivan elected mayor of the city of Anchorage.  He continued as mayor through January 1982, including during unification of the Anchorage city and Greater Anchorage Area Borough governments into the unified Municipality of Anchorage (which took place in 1975).

1982

January 2, 1982. George Sullivan ends his last term; Tony Knowles inaugurated as mayor. [Ref #1]

Tony Knowles administration 1982—1987

Manager of Records and Benefits: Susan Lindemuth

January 19, 1982

Per an article by Sean Cockerham in the Anchorage Daily News,

The minutes from the Jan. 19, 1982, Assembly meeting show that Assembly member Gerry O’Connor, who died in 2005, proposed that the city provide life insurance for the retiring Sullivan. O’Connor, according to the minutes, said he felt Sullivan’s insurance should be continued because he had triple bypass surgery and “was probably unable to pass the physical to qualify for private insurance.” [Ref #2]

The Anchorage Assembly, in AR 82-30, resolved:

That the Commission on Salaries and Emoluments be requested to consider directing that life insurance coverage be provided to former Mayor George M. Sullivan for the remainder of his life at the same rate and with the same coverage as in existence on January 1, 1982. [Ref #3, p. 1]

February 18, 1982

Susan Lindemuth, Manager of Records and Benefits, wrote in a memo to Ruby Smith, Municipal Clerk,

When he left office, Mr. Sullivan’s life was insured for $193,000. The figures I am quoting are based on a continuation of that level of insurance.

If the Municipality continues Mr. Sullivan’s coverage as a member of the group, it will cost the Municipality $86.85 per month or $1,042.20 per year…. This premium could be paid either by the Municipality or Mr. Sullivan.

Mr. Sullivan is eligible to convert his insurance to an individual policy.  At his age, continued coverage would cost Mr. Sullivan $961.00 per month…. [Ref #3, page 2; emphasis added]

Note the emphasized words: Lindemuth was talking about the MOA’s group insurance plan.

February 24, 1982

The Salary and Emoluments Commission met. Its minutes show that the Commission was concerned whether Sullivan was eligible for inclusion under the Muni’s group insurance plan with Aetna.

There was still concern by the Commission whether the insurance company would allow someone who was no longer employed by the Municipality to remain part of the group plan and pay the month premiums out-of-pocket. [Ref #3, page 6 (page 2 of minutes)]

Susan Lindemuth, Manager of Records and Benefits, told them that the insurance company would cover him:

In response to questions by Mr. Lounsbury, Ms. Lindemuth stated there is no problem as far as the insurance company is concerned in continuing George Sullivan in the insurance program after his completion of service with the Municipality and has drawn his last paycheck.  She further stated that the Municipality would just add an amendment to the policy saying George Sullivan is eligible to continue participation. [Ref #3, page 6 (page 2 of minutes)]

Thus reassured, the Commission passed Resolution 82-1, which provided:

Section 1. That the Municipality shall provide life insurance coverage to former Anchorage Mayor George M. Sullivan at the remainder of his life at the same rate and with the same coverage as in existence on January 1, 1982.

Section 2. That the cost of providing said life insurance coverage shall be borne in full by Mayor George M. Sullivan.

Section 3. This resolution takes effect at the beginning of the next fiscal year of the Municipality. [Ref #3, page 9]

Nothing in the Commission’s minutes indicate that the Commission at any time contemplated providing coverage for the former mayor in any way other than via the Muni’s group insurance plan.

July 12, 1982

In January 2007 (during the Begich administration), Joanne Hanscom, health care plan administrator/privacy officer, put together a timeline of things she found in the file regarding Sullivan’s life insurance, including this item:

July 12, 1982 – Handwritten note to Barb (Municipal Manager’s office – last name unknown) from Susan Lindemuth stating she doesn’t see any problem with self paying, but she did have a problem with the same rate. Barb responded agreeing with her. [Ref #4, page 2]

August 4, 1982

In January 2007, Joanne Hanscom found the following in the file:

August 4, 1982 – Letter to Mr. Sullivan from Susan Lindemuth telling him how much he is entitled to ($193,000) and that the annual cost was $1,042.20. [Ref #4, page 2]

October 31, 1982

George Sullivan’s accrued leave ran out, thereby ending his employment by the Municipality. [Ref #1; Ref #2, page 14]

November 10, 1982

In a memorandum to the Commission, Susan Lindemuth reported on the status of Sullivan’s insurance,

The provisions of Resolution 82-1 of the Salary and Emoluments Commission state that George Sullivan will be allowed to continue his life insurance coverage under the Municipality’s group plan at his expense for the remainder of his life.  The amount of coverage will be that in effect on January 1, 1982 ($193,000) and the premium rate will also be that in effect on January 1, 1982 ($77.20).  The resolution is to take effect January 1, 1983. [Ref #2, page 14; emphasis added]

This is further confirmation of Lindemuth’s clear understanding of the Commission’s intent: that Sullivan’s insurance coverage was to be under the Municipality’s group insurance plan, not as some kind of separate contract or individual insurance plan covered in some other way (as would eventually be contended in 2010 by George Sullivan’s son, Mayor Dan Sullivan, and his city attorney Dennis Wheeler).  But note that here, Lindemuth gives a different premium rate for what was in effect on January 1, 1982 — $77.20/month, which calculates to $926.40 annually –  than she gave the Commission on February 18, 1982 — $86.85 per month, or $1,042.20 per year — and that she also gave to George Sullivan in her August 4 letter to him.  No explanation for this discrepancy was offered.

Lindemuth’s memorandum continued,

Mr. Sullivan retired from the Municipality on October 31, 1982.  So that there would be no break in his insurance coverage, he was allowed to make the premium payments for November and December. Mr. Sullivan has already provided for monthly payment of the premium amount to the Municipality.  To the extent that the premium amount exceed that paid by Mr. Sullivan, the Mayor’s Office benefits account will be charged for the difference. [Ref #2, page 14; emphasis added]

At its meeting on that date, the Commission discussed Lindemuth’s report:

Chairman Millsap stated that attached to the Agenda was a status report on the life insurance coverage for Mr. Sullivan. He stated the letter was very self-explanatory and that everything had been taken care of. [Ref #2, page 12; emphasis added]

This acceptance of Lindemuth’s report is yet another confirmation that the Commission’s intent was for Sullivan to be covered by the MOA’s group plan.  However, there was a problem:

Ms. [sic] Lounsbury stated he was questioning the last sentence — “to the extent that the premium amount exceeds that paid by Mr. Sullivan, the mayor’s office benefits account will be charged for the difference.”

Ms. Gotham stated that is not what this commission said.

Mr. Lounsbury continued by saying that Mr. Sullivan is to pay what the premium is.  The commission didn’t set any certain amount, they just said you pay the premium.

Chairman Millsap requested the Recording Secretary obtain clarification from Susan Lindemuth. [Ref #2, page 12; emphasis in original]

In other words, there was a conflict between Section 1 of the Commission’s Resolution 82-1, which provided that Sullivan’s insurance would continue at “the same rate” (same premium), and Section 2, which provided that Sullivan would bear the cost of the premiums in full.

November 17, 1982

In another memo to the Commission, Susan Lindemuth explained the rationale for the questioned sentence:

Judy Flitter has asked that I clarify the last sentence in paragraph two of my November 10 memo.

When planning for the implementation of Resolution 82-1, the meaning of “at the rate in effect as of January 1, 1982″ was questioned.  Municipal Attorney Jerry Wertzbaugher interpreted it to mean that Mr. Sullivan would not be required to pay for increases in life insurance premium payments subsequent to January 1, 1982.  To the extent that those rates will increase… the Municipality will have to pick up the difference. [Ref #2, page 15]

November 22, 1982

At the Commission’s direction, Judy Flitter, wrote a memo to Lindemuth clarifying the Commission’s intent:

The decision from the Salary and Emoluments Commission was to allow former Mayor George Sullivan to retain the policy but to pay any premiums himself.  They did not intent [sic] for any monies to be taken from the current Mayor’s budget.  The statement from the commission is: The bill is to be sent to Mr. Sullivan for the difference per thousand per month. [Ref #9, page 16]

So problem solved: in spite of the “at the same rate” provision in Section 1 of Resolution 82-1, Sullivan was required to pay the full premiums himself even if they went over the premium rate that had been in effect on January 1, 1982. (The Commission said nothing explicitly about whether Sullivan would pay less than that rate in the unlikely event that the premiums somehow happened to go down.)

This memo was later (in January 2007, during the administration of Mark Begich) summed up by Joanne Hanscom as follows:

November 22, 1982 – Memo from Judy Flitter (Clerk’s Office) to Susan Lindemuth reiterating the fact that Mr. Sullivan would need to pay the premiums himself, not the Mayor’s office. [Ref #4, page 2]

Thus the record makes clear that as of November 1982, the Commission on Salaries & Emoluments, which had acted at the behest of the Assembly, both intended & understood that George Sullivan’s life insurance would continue through the MOA’s group plan with the MOA’s insurance provider; and that the Commission had made this intention clear to the Muni’s Manager of Records and Benefits, Susan Lindemuth.

It’s also clear that as of November 1982, the Commission believed — as Chairman Millsap stated at the November 10 meeting — that “everything had been taken care of.” [Ref #2, page 12] But in January 2007, Joanne Hanscom would write,

There has been no life insurance policy in place since he [George Sullivan] left municipal employment. [Ref #4, page 2]

If there was no life insurance policy in place, that would be contrary to the Commission’s Resolution 82-1, and also contrary to the  Susan Lindemuth’s November report to the Commission indicating that everything was in place.

But why did Hanscom believe that no life insurance policy was in place?  For the answer to that, see the next item.

1984

January 8 or 9, 1984

The next known item in our chronology is again provided by the January 2007 timeline put together by Joanne Hanscom, accompanied by her speculation (in bold):

January 9, 1984 – Letter to Susan Lindemuth from James Hickey (Aetna) regarding the group policy number 392680 and George Sullivan. I do not think anyone at MOA informed Aetna that Mr. Sullivan was no longer employed by the municipality.  However, he was kept on the census and Mr. Sullivan kept making the annual premium payments. [Ref #4, page 2; emphasis added]

If Hanscom’s 2007 speculation is correct, it seems that despite what Susan Lindemuth had assured the Commission during its February 24, 1984 1982 meeting about amending the group insurance policy to include Sullivan as an ex-employee, that MOA did not in fact amend the policy or inform Aetna.  It’d be nice if this letter was made public, so we could see exactly what Aetna understood at the time about George Sullivan’s eligibility, and therefore what led Hanscom to make this speculation.

But wait a minute.  According to an email on January 30, 2002 (during the Wuerth Wuerch administration) from Karen Moore to Lynda Gable,

I see a letter in the file from Aetna (James Hickey) regarding “Assignment of Group Coverage” that set up a trustee for his [George Sullivan’s] irrevocable trust and dated 1/8/84. [Ref #5, page 7]

There’s a discrepancy in the dates here (January 8 or January 9?), but that is undoubtedly the same latter from James Hickey.  And it appears that this is when the George M. Sullivan Irrevocable Life Insurance Trust was set up.

It should go without saying that as Manager of Records and Benefits, it was Lindemuth’s responsibility to ensure that Aetna was properly informed that Sullivan was not, in fact, any longer a municipal employee; and if it turned out that there was a problem after all in covering him under the group plan, it was her responsibility to ensure that the Commission on Salaries and Emoluments and the Anchorage Assembly were also informed.  Did Lindemuth believe she had informed Aetna?  Did she believe in good faith that Sullivan was in fact covered by the group insurance policy?  Did all this mess arise out of a mistaken belief that everything really was set up properly in the way the Commission understood it to be at the end of 1982?

1987

Tom Fink became mayor.

Tom Fink administration 1987—1994

City manager: Larry Crawford
Manager of Records and Benefits: Susan Lindemuth

1992

The timeline put together in January 2007 by Joanne Hanscom again gives us our next item:

January 7, 1992 – Letter to Mr. Sullivan from Christine Kendrick, MOA Records and Benefits employee, informing him that his new premium was $833.76 per year. [Ref #4, page 2]

If Joanne Hanscom’s speculations are correct, Sullivan was not covered by the MOA’s group insurance policy with Aetna, and in fact was completely uninsured.  It’s therefore not accurate that this was even a “premium.”  Who, then, set the “premium” amount? As an employee of Records and benefits, Christine Kendrick would have been under the supervision of Susan Lindemuth.  Did the so-called premium change on Lindemuth’s authority?  If not her authority, then whose?  Did MOA Records and Benefits believe in good faith that Sullivan was covered by the Muni’s group policy, with the “premium” set by Aetna?  What were the real group insurance premiums set by Aetna at that time?

But see January 2002, where it becomes apparent that Aetna could not have calculated premiums for George Sullivan.  As Lynda Gable of Aetna would write in 2002,

The insurance fund was the reserves that Muni held and those funds were never submitted to Aetna nor included in any of our premium calculations from a risk standpoint to the best of my knowledge. [Ref #5, page 4; emphasis added]

1994

Tom Fink’s term as mayor ended, and Rick Mystrom became mayor.

Rick Mystrom administration 1994–2000

City manager: Larry Crawford through June 1998;  George Vakalis thereafter
Manager of Records and Benefits: Susan Lindemuth

January 8, 1994

In an article explaining how Tom Fink and other Anchorage mayors often continued to draw paychecks after their terms had ended (due to unused annual leave), Peter Blumberg of the Anchorage Daily News wrote,

Tony Knowles, Fink’s immediate predecessor and also a candidate for governor, stayed on the payroll for five months following his departure from the mayor’s office and he still buys health insurance from the city. George Sullivan, who preceded Knowles as mayor, stayed on the payroll 10 months beyond his last day in office and he still buys life insurance from the city, according to Lindemuth. [Ref #6; emphasis added]

But the Municipality was not then (nor is it now) a life insurance company.  Was Lindemuth knowingly mischaracterizing what Sullivan was “buying” from the Muni?  Or, in line with my “this was just a mistake” theory, did Lindemuth simply not understand the true situation regarding Sullivan’s eligibility under the Muni’s group plan with Aetna? Or is there some third alternative that I’m missing?

Note that Knowles’ health insurance was a very different matter from the life insurance that Sullivan was putatively buying from the Muni.

1995

November 29, 1995

Again from the timeline prepared by Joanne Hanscom in January 2007:

November 29, 1995 – Letter to Mr. Sullivan from Pamela Barbeau, MOA Records and Benefits employee, informing him that his new premium amount is $555.84 per year. [Ref #4, page 2]

Here we have the same questions that we have with the change in the so-called “premium” in 1992.  Rather than repeating them here, I refer you back to that year.  It remains a question as to how Sullivan’s so-called “premium” was calculated.

2000

Rick Mystrom’s term ended and George Wuerch became mayor.

George Wuerch administration 2000–2003

City manager: Harry Kieling
Manager of Records and Benefits: Susan Lindemuth through October 2000;
Karen Moore by y January 2002

October 2000

Susan Lindemuth was Manager of Records and Benefits until October 2000, at which time she retired from municipal employment and went to work at the Alaska Railroad as Director of Human Resources. [Ref #7]

2002

January 2002

George Sullivan’s son Dan, then a member of the Anchorage Assembly, came to the city to pay the annual “premium.”  Deputy Employee Relations Director Karen Moore (also identified in one email as Manager of Records and Benefits) had no knowledge of the life insurance arrangement and initiated a flurry of emails to figure everything out.

January 30, 2002

Karen Moore to Lynda C. Gable of Aetna:

Do you recall or know of anything in file regarding life insurance on former Mayor Sullivan.  Diane Pain is no longer working for us and all I find in the file is a resolution providing for Mayor Sullivan to have continued coverage.  The premium is paid annually.

Any clues for me? [Ref #5, page 1]

Lynda C. Gable replied:

I have no idea.  Is he possibly covered as an elected official or something currently?  Given he potentially is not an active employee, I don’t know how they were classifying him to be eligible — and also might be concerned about the contract actually recognizing him as eligible….

My concern is if we imply to him there is coverage but if there is no contractual basis — his claim could actually be denied if he passes away.  So, I think some digging is in order to make sure everyone is on the same page. [Ref #5, page 1]

Note the concern here with a contract.  If there was such a contract, it would have to have been around November 1982, when per Susan Lindemuth November 10, 1982 memo to the Commission on Salaries and Emoluments which seemed to indicate that everything was a go.  But there was no reference in that memo to any communication actually made between the Muni and Aetna indicating an actual contract to continue Sullivan on the group plan; and in fact the first communication between Aetna and the Muni that we’re so far aware of is that of January 8 or 9, 1984, when James Hickey sent his letter regarding “Assignment of Group Coverage” — the same letter that would later lead Joanne Hanscom to speculate, “I do not think anyone at MOA informed Aetna that Mr. Sullivan was no longer employed by the municipality” [Ref #4, page 2]

Karen Moore also wrote to Susan Lindemuth:

Can you shed some light on the continued life insurance for George Sullivan?  His son Dan wants to pay the premium, but I can’t find anything in file that says who is covering the risk, only that the Salary and Emolument Commission passed this resolution saying the MOA must continue to provide life insurance. [Ref #5, page 2]

Susan Lindemuth replied,

George has been paying for it.  A check for the annual premium was sent to the MOA and deposited in the insurance fund.  I wouldn’t think it matters who (from the Sullivan family) pays for it…but it isn’t an MOA expense. [Ref #5, page 2]

Moore then wrote back,

Yes, that makes sense.  Who was on the risk?  There is nothing int he file to indicate who to pay the premium to… [Ref #5, page 4; ellipsis in original]

Lindemuth replied,

He was covered as part of the MOA group and therefore, part of that “risk”. There was no separate policy with Aetna or any other insurance carrier for him…and no separate “premium” was paid to any outside party.  As the life insurance rates changed over the years, he was informed and paid the appropriate premium amount…or the kids paid on his behalf.

We had a split funded agreement with Aetna…so we paid the “retention” monthly and funded the life insurance claims when incurred.  His coverage amount ($93,000 [sic]) was included in the volume reported to Aetna. [Ref #5, page 4; all ellipses in original; emphases added]

Now, I don’t understand insurance practices that well, so I don’t exactly know what “split funded agreement” means, or what a “retention” is.  And — “funded the life insurance claims when incurred” — does that mean that the Muni only sent the monies to the insurance company when the policy holder actually died, and the claim was made?  Could someone who understands insurance better than I do clue me in by writing an explanatory comment?

(But see that second bolded sentence: “His coverage amount ($93,000 [sic]) was included in the volume reported to Aetna.” That’s not what Lynda Gable of Aetna will write just two blockquotes below.)

In any case, Karen Moore forwarded Lindemuth’s explanation to Lynda Gable at Aetna with the following introduction:

Here’s what Susan Lindemuth is saying.l  Under the minimum premium arrangement, MOA apparently deposited his premium into the insurance fund.  Since we have changed coverage arrangement to fully insured, how would this affect his coverage? [Ref #5, page 4]

Lynda Gable replied,

This means Muni kept those dollars on hand in the claims funds.  I don’t know if intent was to have them handle a death claim directly, but Aetna never received any premiums.  The insurance fund was the reserves that Muni held and those funds were never submitted to Aetna nor included in any of our premium calculations from a risk standpoint to the best of my knowledge.  How much life insurance is he supposed to have??? [Ref #5, page 4; emphasis added]

Based on this, it seems that (1) the Muni never passed Sullivan’s “premiums” to Aetna; (2) Aetna didn’t know Sullivan was thought by anyone at MOA to be on the Muni’s group plan; (3) even if Sullivan had legitimately been on the group plan, since his premiums were never sent or apparently reported to Aetna, Aetna could not make an accurate calculation of his insurance risk — and so, I’m guessing, the changes in his “premiums” in 1992 and 1995 were based on something other than what his risk really was. And am I correct that this contradicts Lindemuth’s assertion that “His coverage amount ($93,000 [sic]) was included in the volume reported to Aetna”? Are there any insurance whizzes out there who can confirm or correct my reading on this?  Even in 1982, when the continuation of the life insurance was supposedly set up, George Sullivan was 59 and had recently had triple bypass surgery — which had to have had an impact on his risk.

The email conversation continued with Karen Moore answering Lynda Gable’s question about the amount of coverage Sullivan was supposed to have:

Amount was $193,000.  I see a letter in the file from Aetna (James Hickey) regarding “Assignment of Group Coverage” that set up a trustee for his irrevocable trust and dated 1/8/84.  I also found a memo from Susan Lindemuth to the MOA Clerk’s office that gave the premium under Aetna group coverage and the cost of converting coverage at his then age.  I can see why he wouldn’t have wanted to convert it. [Ref #5, page 7]

Here again (because I’ve already quoted that part of this message) is a reference to the setting up of the George M. Sullivan Irrevocable Life Insurance Trust in January 1984. (And again, recall something about the letter from James Hickey led Joanne Hanscom in 2007 to believe that the MOA had never informed Aetna that Sullivan was no longer a muncipal employee.)  The memo from Susan Lindemuth to the MOA Clerk’s office that Moore mentions appears to be the memo of February 18, 1982, which I quoted near the beginning of this chronology.

Lynda Gable replied,

Unfortunately this is one piece of history I don’t have.  Conversion is definitely expensive and really intended for those individuals who can’t get replacement life insurance if they needed to pass a physical.  If you sent us copies of any documents you have, we can have some research done.  At this time, I can’t really promise an outcome — not having the historical knowledge or [sic] what would have continued to make him eligible after he left office.  We’ll look forward to the documents to continue our review. [Ref #5, page 7]

That’s all the emails we’ve seen between Karen Moore and Lynda Gable on January 30, but there must’ve been at least one more based on what Karen Moore wrote to Employee Relations Director David Otto that afternoon at 3:38 PM:

At your direction, I have researched Mayor Sullivan’s life insurance situation with the MOA.  Here is what I have found out.

On February 24, 1982, by resolution of the Salary and Emoluments Commission (Resolution 82-1), Mayor Sullivan was granted life insurance for the “remainder of his life at the same rate and at the same coverage as in existence on January 1, 1982.”  A memo dated August 4, 1982 from Susan Lindemuth set out that the coverage amount was $193,000 and that the monthly premium was $77.20. [That would add up to $926.40 annually; but according to Joanne Hanscom in 2007, the August 4, 1982 item was not a memorandum but a letter to George Sullivan giving an annual premium rate of $1,042.20; Ref #4, page 2.] Another memo from the Clerk’s office in support of the Salary and Emoluments Commission clarified that Mayor Sullivan was to pay the premium himself.  Other than assigning the proceeds to an irrevocable trust and identifying a trustee, that is the only documentation in the file.

For clarification on who was on the risk, I emailed Susan Lindemuth.  Susan indicated that under the former “split premium” agreement with Aetna, MOA paid retention monthly and funded the life claims as they incurred.  Susan included Mayor Sullivan in the group.  When we went fully insured in March of last year, we no longer fund or pay life claims as they incurred.  that risk belongs to Aetna.  Our agreement (contract) with Aetna was and is to cover active lives.  In email conversations with Lynda Gable, long time account executive for Aetna’s MOA coverage, Aetna is not aware of Mayor Sullivan’s continued participation in the active group insurance.  Lynda tells me they would have denied payment when it became evident that he was not an active employee.  Susan indicated that premiums received from Mayor Sullivan were deposited in to the insurance fund.  I suspect she intended to have the MOA pay any death claim from the 603 account, rather than have Aetna pay the claim and then reimbursing Aetna. [Ref #5, page 11]

This is another paragraph it’d really help if someone who understands insurance could explain to me — I understand some parts, but others are fuzzy to me.  What is clear is that Aetna had no knowledge of Sullivan, and could not have calculated his “premiums” because of that.

Bottom line is that Aetna does not have a policy for Mayor Sullivan, nor would they cover him under our group plan since it is limited to active employees.  We can rectify this by any one of the following:

1. Set up a sub-fund in 603 in the amount of $193,000 to be paid out upon Mayor Sullivan’s death

2. Don’t fund the $193,000 and pay it when he dies from some source to be identified at that time, upon Assembly approval.

3. Set-up sub fund in 603, credit past premiums and continue to add yearly premiums as paid.  MOA to fund difference upon his death and with Assembly approval.

The family premium payments should go into an account that would then reduce the overall liability to the MOA as yearly premiums are paid.  For example, the family has paid nearly $18,000 since 1982.  Therefore, the actual MOA liability is $175,000, since $18,000 has been received and deposited into the 603 fund.

Once we decide how to proceed, I will document the file to make sure that future employees will know how to handle this situation when it comes time to pay out. [Ref #5, page 11]

February 4, 2002

Karen Moore wrote to Glenn Smith, city risk manager:

Harry [presumably city manager Harry Kieling] suggested I forward this onto you to see if you had any creative ideas on how to fund this.  Read my email — it’s pretty self explanatory.   Bottom line, he can’t be on the active group insurance because he isn’t actively employed anymore…. [Ref #5, page 12]

The email she forwarded was a February 1 email from David Otto which probably included her lengthy January 30 email to him as an attachment.  This email and its attachments became part of a thread of emails that ultimately included the Municipality’s chief financial officer Kate Giard, city manager Harry Kieling, Office of Management and Budget Director Cheryl Frasca (who is also Mayor Dan Sullivan’s budget director), city attorney William Greene, and city risk manager Glenn Smith.

February 4 or 5, 2002 (date header missing from email, but probably Feb. 5)

Chief financial officer Kate Giard wrote a email (with a long chain of attached emails, as mentioned above) whose recipients included  Harry Kieling, Cheryl Frasca, William Greene, and Glenn Smith:

Folks,

We had better get together on this issue.  We just can’t make payments of this nature from the self insurance or any fund without assembly approval.  Mr. Sullivan had an insurance policy, apparently, for the last several years for which he paid premiums.  The policy in effect was an illegal commitment unless the Assembly approves it.  I would recommend we get together with legal to see what we have here. [Ref #5, page 12; underline in original; bold emphasis added]

February 5, 2002

From Glenn Smith to the same recipient list:

Kate; they were not recommending to use our SIF [I believe this stands for self-insurance fund].  Depending on what action ER [employee relations] has to take will determine what route to take with the Assembly.  I would like to see [Commission on Salaries & Emoluments] resolution 82-1 if there is a meeting on this.— One thing for sure this must be worked out and we must be positive this is the only former employee that is in this situation. [Ref #5, page 13]

There is then a lapse of over a month in the emails that have been made publicly available.

March 9, 2002

This is in the same email stream as above, from city attorney William Greene to Kate Giard and David Otto, with a cc: to Kathie Meyer. I don’t know who she is, but she is otherwise unrepresented in the 2002 emails.  In any case, here’s Greene’s email:

WHERE ARE WE ON THIS????  IS LAW TO DO SOMETHING???  We will obtain AR 82-1 and provide [Ref #5, page 13]

AR is the prefix for Assembly resolutions; Greene was apparently confusing Resolution 82-1 of the Commission on Salaries & Emoluments with an Assembly resolution.  (The Assembly resolution which asked the Commission in 1982 to see if the life insurance benefit could be provided to Sullivan was AR 82-30. [Ref #3, page 1])

March 12, 2002

Greene followed up himself three days later with an email address to Cheryl Frasca, Kete Giard, and David Otto:

Be glad to meet, but don’t think its necessary.  Karen Moore’s three options are it and number three seems the most reasonable.  There is no option not to provide the coverage.  I’m copying the underlying documentation to you all. via internal snail mail. [Ref #5, page 13; emphasis added]

Greene gave no explanation for his opinion that “there is no option to provide the coverage” — the first time, in the record so far made public, that this claim was made after it became crystal clear that Sullivan was not covered by the MOA’s group plan.  It’s unknown from the emails whether a meeting in fact took place, or which specific documents Greene had examined to lead him to this opinion.

The option he deemed the “most reasonable” was the third option described in Karen Moore’s long email to David Otto on January 30, 2002:

3. Set-up sub fund in 603, credit past premiums and continue to add yearly premiums as paid.  MOA to fund difference upon his death and with Assembly approval. [Ref #5, page 11]

March 13, 2002

The following day, Kate Giard replied to William Greene’s “there is no option to not provide” email with another, addressed to the same recipient list (William Greene, Cheryl Frasca, David Otto):

Cool.  I’m all for not meeting if Otto’s shop has the ball and the matter is concluded.  Do we have to budget for it each year til th eold gentleman passes on? [Ref #5, page 11]

William Green replied,

You need to read the optional solutions mentioned in the preceding e-mail.  The answer to your question depends on which alternative is chosen, but I suggest that something be done soon or MOA will have to come up with nearly $200K all of a sudden. (I trust this is life and not double indemnity.)  I’m outa here unless someone needs legal help. [Ref #5, page 11]

March 21, 2002

Melissa Deitrick of Aetna sent an email to Karen Moore (cc’ing to two other people who I believe were with Aetna) with an attached file “Sullivan Letter.doc.”  The text of the letter is not included in the materials made publicly available, but the text of the email gives the gist:

Karen, I have mailed you the signed, hard-copy of this letter today.  As you probably suspected, Aetna does not have the former mayor on the group insurance policy due to lack of eligibility.  I did confirm with Ann Wells that premium for the basic and supplemental life insurance is only paid for active employees who meet current group eligibility guidelines.

Though I did not include this in my letter to you, it may be that there is an individual life insurance policy for the former mayor currently in place.  However, it is not through Aetna.

Our legal department advised the Muni return the premium money paid for the mayor’s $193,000 life insurance coverage. This would only apply for the period after the mayor was ineligible for the Aetna coverage.  Of course, this would not be appropriate if the premium money is used for payment on a non-Aetna policy.

The bottom line situation from Aetna’s perspective is that Anchorage’s former mayor is not eligible for the current life insurance coverage, and does not have $193,000 life insurance policy underwritten by Aetna.  If there were a death claim filed for this benefit, Aetna is not financially liable.

Please understand that this determination was made based on available information and on our insurance coverage records.  If you find records which indicated otherwise, please provide them to me for review.

If you have additional questions or need to discuss this issue in detail, you are welcome to call me at the number listed below. [Ref #5, pages 14-15; emphases added]

As we know from Susan Lindemuth’s January 30 email to Karen Moore, Sullivan had no separate policy with any other carrier.  [Ref #5, page 4] His life insurance was with Aetna, or nothing.  And since it was not with Aetna — it was nothing.

Karen Moore subsequently forwarded Melissa Deitrick’s email to David Otto with the following introduction:

Aetna has researched their files and cannot find a policy for Mayor Sullivan.  As indicated below, he cannot be covered under our active group plan.  The best solution seems to be to create an account within 603 (where his premiums have been deposited over the years), credit that account the amount of premiums received and then fund the difference between premiums collected and the $193,000 amount set forth by the salary and emoluments commission resolution at the time of death.

What I need is some direction on how to set this up, and then document it so future Benefits Managers don’t have to guess what’s happening when Dan Sullivan comes in and pays the premium.

Perhaps we should set up a meeting with Kate Giard and someone from legal to be sure this is done according to hoyle??? [Ref #5, page 14]

March 22, 2002

David Otto forwarded Karen Moore’s email (complete with a copy of the email from Melissa Deitrick which advised the Municipality to refund the “premiums” — to muncipal attorney William Greene and chief financial officer Kate Giard.  His intro said, simply,

For our discussion [Ref #5, page 16]

William Greene replied to Otto and Giard,

Dave:  My eyes aren’t that good even with glasses.  Someday it will be your turn.  I’d be glad to participate, but I don’t know what I might add.  Your solution seems appears to make sense to me.  Kate can tell how to do it.  The only thing that’s left is to document, get the $, and put a notice somewhere where it won’t be forgotten.  If there’s something else I can do, please let me know. [Ref #5, page 16]

The record doesn’t indicate if there actually was any face-to-face discussion in which Greene participated.

What’s striking to me here is that Aetna’s legal advice to return the premiums was not only ignored, but didn’t even rate a mention.  There is no evidence that anyone, much less William Greene himself, gave any consideration to legal advice that contradicted Greene’s assertion in his email of March 13, based on legal (or some sort of) reasoning that was never explained to anyone, that “There is no option not to provide the coverage.” [Ref #5, page 13]

Nor, damningly, did anyone appear to take note of the statement made by Aetna’s Lynda Gable in her January 30 email that “The insurance fund was the reserves that Muni held and those funds were never submitted to Aetna nor included in any of our premium calculations from a risk standpoint ….” [Ref #5, page 4; emphasis added] That’s a pretty big problem there, because it indicates that the reductions in Sullivan’s so-called “premiums” in 1992 and again in 1994 were absolutely based on something other than what Sullivan’s real risk from an insurance standpoint was.  Not to mention his “premiums” were lower by over $400 than what the Commission on Salaries and Emoluments had authorized in 1982 — which again, per Resolution 82-1, was supposed to be “the same rate… as in existence on January 1, 1982.” [Ref #3, page 9]

Furthermore, in spite of CFO Kate Giard’s statement on February 4 or 5 that “The policy in effect was an illegal commitment unless the Assembly approves it” [Ref #5, page 12], no one informed the Assembly, much less asked the Assembly to approve it. Was it not, then, still an illegal commitment?

March 27, 2002

OMB director Cheryl Frasca — who, again, holds the same position in the current administration) — wrote to Kate Giard,

My assumption is that this issue is getting addressed outside of the budget process.  If that’s incorrect, I need to know. [Ref #5, page 18]

Kate Giard replied, copying her email to David Otto, city manager Harry Kieling, William Greene, and Karen Moore:

Cheryl, et. al.

My recommendation is that the potential payout amount goes into your fund balance “reserve” account and leave it at that.  If you put it in the budget, it’s just going to lapse every year.  Its not so much money, thank god, that when the unfortunate event occurs, we simply take the money out of the reserve and get assembly approval for payment.  (My recollection is that the total is somewhere in the $150,000 range.  If it is much higher than that, my recommendation may change.)

As long as ER has all of the documentation showing that a prior Assembly intended to provide this benefit and can also show that in the past there was, in fact, no insurance policy acquired with the proceeds paid to us by the Sullivan family, then we do have an obligation to pay, as required by prior assembly action. [Ref #5, page 18]

Again, the problem here is that neither the 1982 Assembly nor the Commission on Salaries and Emoluments had contemplated paying the benefit out of public funds.  The intended Sullivan to go on the group insurance with Aetna.  The Commission in 1982 was in fact told (by then-Manager of Records and Benefits Susan Lindemuth) that he was on the group insurance with Aetna.  But this was untrue.  Appparently he never was.  And by taking these actions without attending to the 1982 Assembly’s intent re: group insurance, and without informing the 2002 Assembly of the problems that had been discovered, Wuerch’s officials usurped authority that did not in fact belong to them.

Back to Giard’s email –

We could terminate this obligation by simply telling the Sullivan family we will no longer provide this insurance….I would not recommend that course of action, however, it is an option the Administration may consider. [Ref #5, page 18]

Why would she not recommend that course of action?  And why was it up to the Administration? — how about the Assembly, which was the body that had actual authority in the matter?

Giard again –

We could also try to acquire a life insurance policy for the former Mayor, but the cost would very likely be prohibitive, given his age. [Ref #5, page 18]

Instead, it would continue to be dirt cheap, at the rate established through unknown means in 1995 of $555.84 per year. [Ref #4, page 2]

And finally, the end of Giard’s email:

In summary, I would recommend that you put aside the payout amount as part of the reserve of fund balance and when Mayor Sullivan dies, we will obtain assembly approval and pay out the proceeds. [Ref #5, page 18]

April 2, 2002

There are a few more emails in the 2002 record which mostly have to do with the technicalities of where to deposit the “premiums” when they were paid.  The final email in the record was a long string of such emails, with the last page — a forwarded copy of Kate Giard’s March 27 email — marked in the margin with handwritten notes:

How to handle Sullivan Life Insurance

1. Collect premium annually in Jan (Dan usually comes in & pays)
2. Deposit to 603 Fund
3. When proceeds need to be paid out — pay out of 603 fund
4. Needs Assembly approval when payout is made. [Ref #5, page 23]

2003

George Wuerch’s term ended and Mark Begich became mayor.

Mark Begich administration 2003–2009

City manager: Dennis LeBlanc

2007

January 3, 2007

Three emails from this date from the Begich administration about the Sullivan “life insurance” have been made available to the public. The first is the most important, and has already been referenced, because it includes the timeline that Joanne Hanscom, health care plan administrator/privacy officer, put together.  The timeline was an attachment to an email she wrote addressed to Begich’s city manager, Dennis LeBlanc; deputy city manager Mike Abbott; and chief finance officer Jeffrey Sinz, who had also served as Wuerch’s director of OMB after Cheryl Frasca joined the administration of Governor Frank Murkowski.

Joanne Hanscom’s email reads,

I am attaching information for an MOA liability on Mayor George Sullivan that I am not sure you know about.  I would like to discuss this at our Thursday meeting if possible.  I will be bringing the paperwork I have, but if you would like your copy sooner, please let me know. [Ref #4, page 1]

The timeline in the attachment has an introduction:

The MOA will have to payout $193,000 to the estate of Mayor George Sullivan upon his death. Mr. Sullivan has continued to pay the monthly premium costs. This cost was based on the amount of the premium at the time of his leaving office, and was to include any changes to that premium.  This is according to Resolution 82-1 that was adopted on January 19, 1982. [Ref #4, page 2]

As I’ve written previously [Ref #9], this is incorrect: Resolution 82-1 did not in fact say anything about changes to the premium, but did say specifically  that Sullivan was to pay the same rate that was in force on January 1, 1982.  A later clarification in November 1982 said that if the premium went up, Sullivan still had to pay the full amount.  The Commission said nothing about lowering the premiums.

The attachment continues,

There has been no life insurance policy in place since he left municipal employment. The total amount that Mr. Sullivan has paid is $17,995.32 per the receipts that I have found.   The family has not yet paid the 2007 premium. [Ref #4, page 2]

I’m not going to repeat the full timeline here: it can be seen on page 2 of Reference #4, and I’ve already included most of what it says as quotes in the timeline I’m writing here.  I’ll just include the last two items, because they render the understanding she had of the some of the 2002 material:

• March 21, 2002 – Letter to Karen Moore from Melissa Deitrick (Aetna) informing the MOA that Aetna does not have an individual policy on Mr. Sullivan and that because of Mr. Sullivan’s age he is not eligible for an individual policy and is not eligible for the group policy because he is not an active employee.  Aetna also recommended that the MOA return all of the premium payments paid to the MOA by Mr. Sullivan.
• March 27, 2002 – E-Mail from Kate Giard (CFO) to Cheryl Frasca (OMB) on how the MOA needs to handle this situation.  When the unfortunate happens the MOA should get assembly approval and then take the money out of reserves. [Ref #4, pages 2-3]

Mike Abbott replied to Hanscom’s email,

This is an interesting little nugget.  do we need to set reserves aside at this time?  Have we “booked” this liability? [Ref #4, page 4]

January 24, 2007

The following day, Hanscom replied,

At this time I am not aware of reserves being set aside or that the liability has been booked.  It is on the agenda for tomorrow. [Ref #4, page 5]

And that’s it for what we have from the Begich administration.  We have no information at the moment on what Begich administration officials other than that they did not inform the Assembly of their findings.

2009

Following Mark Begich’s election to the U.S. Senate, Matt Claman was Acting Mayor from January to July 2009 when Dan Sullivan’s term began.

Dan Sullivan administration 2009–present

City manager: George Vakalis

July 1, 2009

Dan Sullivan took office as mayor.  He appointed as city manager George Vakalis, who had also been the second city manager during the Rick Mystrom administration; and Cheryl Frasca as budget director, a position she’d also held during the Wuerch administration. As chief of staff, Sullivan appointed Larry Crawford, who previously had been city manager under mayors George Sullivan, Tom Fink, and Rick Mystrom.  I’ve written in a previous post about Crawford’s relationship with Susan Lindemuth, the Manager of Records and Benefits during most of the period covered by this timeline. [Ref #9]

September 23, 2009

George Sullivan died at home from complications of lung cancer at the age of 87. [Ref #1]

2010

February 2, 2010

Resolution No. AR 2010-33, entitled “A resolution of the Municipality of Anchorage appropriating $193,000.00 from the Areawide General Fund (Fund 101) Fund Balance to the Employee Relations Department BP 2009 Operating Budget (Fund 101) for disbursement under life insurance contract to the George M. Sullivan Irrevocable Life Insurance Trust” [Ref #10, page 3] was introduced as addendum on the agenda of the Anchorage Assembly.

It was accompanied by a memorandum, AM 76-2010, prepared by the Department of Law under the supervision of municipal attorney Dennis Wheeler with the concurrence of Nancy B. Usera, Employee Relations Directory, and city manager George Vakalis.  Its purpose was to explain the resolution:

This resolution requests appropriation of One Hundred Ninety Three Thousand Dollars ($193,000.00) from the Areawide General Fund (Fund 101) to the Employee Relations Department 2009 Operating Budget Fund (Fund 101) for disbursement under a life insurance contract to the George M. Sullivan Irrevocable Life Insurance Trust. [Ref #10, page 1; emphasis added]

But to date, no one has produced a contract.  Now that you’ve read through this timeline, you’re better prepared to notice the omissions in the history Wheeler provides in the memorandum:

In 1982, the Assembly approved Assembly Resolution 82-30, a resolution asking the Commission on Salaries & Emoluments to consider directing the Municipality to provide life insurance coverage for Mayor George M. Sullivan for life.  (See AR 82-30, attached hereto.)  Thereafter, the Commission directed the Municipality to provide life insurance to Sullivan, at his cost, for the remained of his life.  (Commission Resolution 82-1, attached.)  Mayor Sullivan left municipal employment in October 1982.

To meet the directive from the Salaries & Emoluments Commission, the Municipality added Mayor George M. Sullivan to the MOA group life insurance plan with Aetna.  The amount of insurance purchased by Mayor George M. Sullivan was $193,000; the annual premium has varied, from a high of $1,042.20 in 1982 to $555.84 since November 1995.  A total of $19,662.84 in premiums was received by the Municipality and deposited into Fund 603 prior to 2002, and then into the 735 Fund thereafter. [Ref #10, page 1; emphasis added]

In fact, as we now know, (1)  despite the November 1982 indications made by Susan Lindemuth to the Commission, Sullivan was apparently not in fact added to the Muni’s group plan with Aetna; and (2) the “annual premium” amount varied for unknown reasons, because Aetna never received any premiums or information on Sullivan from which to calculate his risk and premiums; (3) as became absolutely clear in 2002, if not before, the Municipality never received any “premiums” from George Sullivan or his family, because Sullivan was not insured and was not part of any “risk.”  Which isn’t to say that the Municipality didn’t receive money from the Sullivans — but the payments were not for “life insurance.” To continue to maintain the fiction that they were is — to be very polite — not accurate.

I am not a lawyer, but I can read these documents and see these facts.  Dennis Wheeler is a lawyer.  How can he not see?

In March 2002, Aetna informed the Municipality that Mayor George M. Sullivan was not eligible for group life insurance plan because he was no longer an employee; Aetna was not carrying an individual policy on Sullivan, nor would Sullivan qualify for an individual policy, due to his age.  The Municipality was similarly unable to secure an individual policy on Sullivan.  However, the Municipality continued to accept the annual premium payments, with payout to be appropriated in full following the passing of Mayor George M. Sullivan.  The good mayor passed in October 2009, and this Resolution appropriates the funds to the trustee of the George M. Sullivan Irrevocable Life Insurance Trust, the appropriate legal entity for the disbursement, to meet the commitment of the Municipality…. [Ref #10, page 1; emphasis added]

As I wrote in my first post on the Sullivan “life insurance,” this is technically true: early 2002 was when the Wuerch administration was “informed” by Aetna. But the phrasing is ambigous, making it easy for readers (that is, the Assembly) to believe that up until then, Aetna had him covered.  Or that Aetna wasn’t completely flummoxed when Karen Moore asked them about him.  Or that the Muni itself wasn’t caught completely flatfooted when then-Assemblymember Dan Sullivan walked into City Hall in January 2002 to pay the “premium” because the person who knew anything about Sullivan’s so-called “life insurance policy” — Susan Lindemuth — was no longer a municipal employee.

Joanne Lindemuth Hanscom again:

There has been no life insurance policy in place since he [George Sullivan] left municipal employment. [Ref #4, page 2]

January 9, 1984 – Letter to Susan Lindemuth from James Hickey (Aetna) regarding the group policy number 392680 and George Sullivan. I do not think anyone at MOA informed Aetna that Mr. Sullivan was no longer employed by the municipality.  However, he was kept on the census and Mr. Sullivan kept making the annual premium payments. [Ref #4, page 2; emphasis added]

Lynda Gable of Aetna in 2002,

The insurance fund was the reserves that Muni held and those funds were never submitted to Aetna nor included in any of our premium calculations from a risk standpoint to the best of my knowledge.  How much life insurance is he supposed to have??? [Ref #5, page 4; emphasis added]

This is information that the Dennis Wheeler had on hand when he and the Department of Law prepared the memorandum.  But this is not information that they included in the memorandum so that the Assembly would be fully informed.  In fact, Assembly members didn’t even learn that Mayor Dan Sullivan was the trustee of the George M. Sullivan Irrevocable Life Insurance Trust until the first news stories began to come out two weeks after AR 2010-33 passed.

February 16, 2010

By a vote of 9-1, the Assembly appropriated $193,000 to the George M. Sullivan Irrevocable Life Insurance Trust. [Ref #1].  The only Assembly member who voted against the appropriation was Harriet Drummond.  However, Mike Gutierrez was not present at the meeting.

One last item

When I was on Shannyn Moore’s radio show last Friday, she told me that the earliest posting of this issue was on December 30 or 31.  Further, items for the Assembly’s agenda must be given to the clerk two weeks in advance; if you don’t get it in time your item goes on an addendum to the agenda.  That’s where Resolution No. AR 2010-33 was located at the February 2 Assembly meeting: on the addendum.  Why was it filed too late to get on the regular agenda, when the December 30/31 posting shows that people in Dan Sullivan’s administration were dealing with it as much as a month before?  The appearance is of an item that was stealth-added to the agenda in order to minimize Assembly & public attention before it came up for a vote on Feb. 16.

I suppose with this timeline I could go into some of the stuff said after the news stories began to come out, but I’m pretty tired now and so are my hands.  So this is it for now.  But if you’ve made it this far, you are now a great deal more informed about this than you were before.   I hope that people will write questions & comments, because even as long as I’ve been at this, I’ve probably missed some stuff.

References

1. 3/3/2010. “George Sullivan timeline” (Anchorage Daily News).
2. 3/3/2010. “City life insurance payout for former mayor raises eyebrows — $193,000: Assembly honors ‘82 deal that puts city money into George Sullivan’s trust” by Sean Cockerham (Anchorage Daily News).
3. 1982 Municipality of Anchorage documents relating to former Mayor George M. Sullivan’s life insurance. Contains the same documents provided in a PDF by the Anchorage Daily News, except that I’ve placed them in chronological order & provided bookmarks (table of contents).
4. 2007 Begich administration emails. Contains the same documents provided in a PDF by the Anchorage Daily News, except slightly reordered & provided with bookmarks (table of contents).
5. 2002 Wuerch administration emails relating to former Mayor George M. Sullivan’s life insurance. Contains the same documents provided in a PDF by the Anchorage Daily News, except that I’ve placed them in chronological order (as best I could) & provided bookmarks (table of contents).
6. 1/8/1994. “Municipality still paying Fink’s salary” by Peter Blumberg (Anchorage Daily News).
7. Susan Lindemuth public profile at Linked-in.
8. 3/10/2010. “Sullygate update 2: ‘Five administrations have been aware of this’” by Melissa S. Green (Henkimaa.com).
9. 3/16/2020. “Sullygate & Chronos, god of time” by Melissa S. Green (Henkimaa.com).
10. 2010 Assembly Resolution & memorandum relating to a payout of $193,000 to a trust in the name of former Mayor George M. Sullivan. Contains the same documents provided in a PDF by the Anchorage Daily News, except slightly reordered & provided with bookmarks (table of contents).
11. AR NO. 2010–91: Resolution submitted by Assemblymember Harriet Drummond on March 9, 2010 calling for an independent investigation of legal & ethical questions surrounding the $193,000 “insurance policy” and payout. Currently scheduled for discussion at the 23 March 2010 Anchorage Assembly meeting.