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December 04, 2007

Executive Life of New York Shortfall Resolved, Announces Spitzer

According to a press release dated December 4, 2007 , New York "Governor Eliot Spitzer was joined by New York State Insurance Superintendent Eric Dinallo to announce an agreement in principle that will protect nearly 11,000 accident victims and other individuals receiving annual payments from structured settlements and pensions.

The New York Liquidation Bureau has successfully resolved a significant deficit from  defunct insurance company, Executive Life Insurance Company of New York (ELNY) that potentially threatened annuity payments to nearly 11,000 disabled and dependent individuals 12-15 years into the future. In 1991, the Liquidation Bureau took over distribution of ELNY’s assets and obligations after the company became insolvent. According to the 12/4/2007 press release, "more than five years ago it became clear that ELNY was threatened by a substantial shortfall, but the problem went unaddressed, jeopardizing the primary financial lifeline of thousands of victims of cataclysmic injuries and pensioners",

Mark Peters, Special Deputy Superintendent in charge of the New York Liquidation Bureau, was quoted: “It was the Liquidation Bureau’s responsibility to take action on the looming ELNY deficit. The Bureau worked intensively to craft a solution that will result in a significant cash infusion (believed to be in the neighborhood of $600 million in today's dollars; on December 10, 2007 the number was reported in "Business Insurance" to be between $650-$750 million), thus protecting ELNY beneficiaries". It is my understanding that the NSSTA Executive Life of NY Task Force was actively involved in the process along with other stakeholders. The proposed plan, subject to approval of the Supreme Court of the State of New York, County of Nassau, "is designed to continue paying all annuitants 100% of their benefits" (underlined for emphasis). The cash infusion comes from life insurers and those property and casualty insurers holding structured settlement annuity contracts.

Skittish P&C insurers should know that today most annuity based structured settlement transactions, involve a qualified assignment where the P&C insurer does not hold the annuity contract. Structured settlements may be funded via structured settlement annuities or US government obligations (T Bond trusts).

Link to the December 4, 2007 Eliot Spitzer Press Release on Executive Life of New York click here

Further Background Information on Executive Life of NY

Insurer Has Big Investor: Metropolitan January 21, 1992 New York Times. A refresher for anyone wanting to know the role of MetLife in the ELNY rehabilitation. I've heard different representations of the facts over the years. Important for newer settlement professionals to know contemporaneously written history to go along with the anecdotal.

New York Announces Plans For Executive Life Bailout, January 22, 1992 New York Times. Further details important to having a proper knowledge foundation about this matter.

Executive LIfe of NY Order of Rehabilitation April 23, 1991. Supreme Court of the State of New York, County of Nassau

The National Organization of Life & Health Insurance Guaranty Associations (NOLHGA) statement December 4, 2007

Posted at 09:29 PM in Executive Life Insurance Company of NY ("ELNY"), New York Structured Settlements, News About Structured Settlements, NSSTA, Structured Settlement Information, Structured Settlement Payments, Structured Settlements |

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Guide to Structured Settlements 2022

  • What is a Structured Settlement? What You Need to Know
    What you need to know about structured settlements. General explanation of structured settlements, including the stable guaranteed income and favorable tax benefits that give structured settlements their "juice" and a helpful introductory video featuring 2022 A.M. Best Client Recommended structured settlement expert and Registered Settlement Planner John Darer® of 4structures.com® LLC
  • How Do Structured Settlements Work? How Structured Settlements Work | Structured Settlement Diagram
    How structured settlements work, including 4structures.com LLC's super helpful structured settlement flow chart/diagram showing how structured settlements fit in with other settlement planning solutions.
  • Rated Ages and Structured Settlement Cost
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  • Structured Settlement Annuity Companies 2022
    Which life insurance companies issue structured settlement annuities going into 2022? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors and/or other Tier1 NAIC ratings, with links to their websites and other useful information.
  • Treasury Funded Structured Settlements
    Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
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    Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
  • Structured Settlement Payments | Types of Structured Settlements
    Ways You Can Structure Your Settlement Payments. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
  • Structured Attorney Fees for Tax Deferral for Contingency Fees
    Structured attorney fees is a financial strategy that offers a unique way to defer taxes for lawyers and law firms. Lawyers CAN structure their legal fees even if the plaintiff doesn't structure their settlement. There are multiple ways to structure your attorney fees, such as the an index linked structured settlement where payments are adjusted based on upside changes in the S&P 500 with no downside and a cap of 5%. Trial Lawyers may also use a special deferred pay/deferred compensation arrangement, if market based returns returns are desired with no cap. Plan NOW for year end! Put structured attorney fee expert John Darer® on your settlement planning team.
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    Receiving structured settlement payments from your own structured settlement or inherited structured settlement? You'll like this huge time saver. Click for a comprehensive list of customer service telephone numbers that includes both current AND former structured settlement annuity issuers and reinsurers. If you have simple bank or beneficiary changes, or if the insurance company that issued the structured annuity has merged, sold or spun off its block of structured annuity business (e.g. Aviva, Transamerica, AEGON, GE Capital, Liberty, CNA) or changed its name and you're trying to track them down, here you go! The list is regularly updated. Last update January 13, 2022.
  • Structured Settlement Quote Lock-Ins | What You Need To Know
    What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
    Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
  • What Are Market Based Structured Settlements?
    Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that: 1. Can afford to take some market risk 2. Have discretionary settlement dollars. Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
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Structured Settlement Best Practices Corner

  • New York Insurance Advertising law requires the full name of the Insurer to be listed along with the city and state of the principal office. Stating that you represent these fine companies using Insurance company logos without the preceding information are also illegal
  • When it comes to settlement documents it is the ultimate responsibility of the lawyers or claims adjusters who receive input concerning the structured settlement aspects of the documents to actually read the entire document, exercise independent thought and advise their clients properly
  • Be aware that financial advisors use of testimonials is prohibited or restricted
  • Most states require that Testimonials represent the CURRENT opinion of the person who made the testimonial. Be prepared to back it up.
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