New York Office has completed the liquidation plan, which could lead to cuts to pay about 16% of consumers who receive payments linked to Executive Life Insurance Company in New York.
Entered Executive Life of New York, Jericho, New York, and rehabilitation in 1991 when its parent company - the insurance company Executive Life, Los Angeles - folded.
Executive Life of Real Estate in New York is responsible for annual payments to individuals who receive the benefits of structured settlements obtained through litigation. In 2007, officials reported in the state of New York that the estate has started to suffer from a lack of significant income around the year 2002.
Benjamin Lawsky, the supervisor of the New York State Department of Financial Services, and James Wrynn, court-appointed receiver for the life of Executive, says the Office is now offered legal papers that could lead to the liquidation of Executive Life of New York.
The proposed plan includes the liquidation of the restructuring agreement deposited with the state court in Nassau County, NY restructuring agreement include the following assets:
The operational life of the assets in New York, which amounts to about $ 900 million.
About $ 730 million of donations from the state guarantee associations of life insurance.
About $ 40 million of life insurance companies to promote the benefits to the owners of the contract, payees and beneficiaries who are not covered by any guarantee of the Assembly of the State, to provide coverage for up to $ 100,000 in the promotion of the benefits.
About $ 25 million of life insurance companies to take advantage of the more "top-up" for increasing the coverage up to $ 250,000 for beneficiaries who are not covered by any guarantee of the State Association, or who have a maximum coverage of the Assembly of the State of $ 250,000 bail less.
Provisions of the plan of liquidation that fall outside the scope of the restructuring include:
Hardship Fund: The life insurance industry has voluntarily agreed to contribute about $ 100 million for the provision of supplemental payments to consumers who may have to be reduced.
Additional potential benefits of some of the owners of the contracts, including insurance companies, property damage, which bought structured settlements from Executive Life, which may remain bound to parts of the payments.
Liquidation plan would double the size of the assets of Executive Life of New York and available to protect the beneficiaries of the interest payments, officials say.
Lawsky said in a statement that the organizers are working with the associations and guarantee life insurance industry to make the best of a difficult situation.
"The fact that Executive Life does not have enough assets to meet all its commitments, made much worse by the recent financial crisis," Lawsky says.
Source : http://www.lifehealthpro.com/2011/09/07/new-york-files-executive-life-ny-liquidation-plan
