If you are a resident of the State of New York or enter into your contract of life insurance, disability insurance, long term care, or annuities in the state, the assessment and diversification of risk is now more important than ever before.
Fellow blogger and industry colleague Pat Hindert points out that Peter Bickford's article, "The Eleohant in the ELNY Courtroom", includes the observation that ELNY's liquidation will apparently exhaust the New York life insurance guaranty fund. Without an act of the New York legislature, according to Bickford, "there will be no life insurance guaranty fund coverage in New York" following ELNY.
Bickford has been heavily critical of the shroud of secrecy surrounding ELNY's rehabilitation since April 1991. New York Insurance law (which mirrors the insurance law of many other states in this regard) also prohibits admitted agents from using statutory protections in a sales presentation.
It's kind of like the moral dilemma faced by the marines in A Few Good Men. Do they follow orders and give Private Santiago the "code red" or do they disobey orders? In the end Private Downey asks Hal why they were dishonorably discharged for following orders and his superior Lance Corporal Dawson explains. Should insurance consumers in the State of New York be able "to handle the truth"?
And so the debate begins. I want to stresss that this is a macro issue that affects consumers, agents, broker, consultants and insurers in New York State that needs to be addressed...soon!