« The Short Sighted Will Pay The Price But Will That Foot The Bill For The Rest of Us? | Main | When a Single French Fry Was A Good Investment »

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 |

Comments

The comments to this entry are closed.

My Photo

Guide to Structured Settlements 2020

  • What is a Structured Settlement? How do I get a Structured Settlement?
    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 2020 A.M. Best recommended structured settlement expert and Registered Settlement Planner John Darer® of 4structures.com® LLC
  • How Do Structured Settlements Work? Structured Settlement Diagram
    How structured settlements work, accompanied by 4structures.com® LLC's helpful structured settlement flow chart/diagram showing how structured settlements fit in with other settlement planning solutions.
  • Rated Ages and Structured Settlement Cost
    Rated Ages for Structured Settlement Annuities present advantages to all parties. Shift the mortality risk to a life insurance company whose business it it is to assess mortality risk to price its life insurance and annuities. Boost your structured settlement annuity benefit \per premium dollar, or your yield, on lifetime payments. Rated ages help to reduce the cost of funding a Medicare Set Aside arrangement where a Structured MSA is being used.
  • Structured Settlement Annuity Companies 2020
    Which life insurance companies issue structured settlement annuities going into 2020? 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, 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.
  • Compare Structured Settlement IRR to Other Settlement Alternatives
    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 or even an index linked structured settlement.
  • 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.
  • Structured Settlement Annuity Company Customer Service Phone Numbers
    Receiving structured settlement payments from your own structured settlement or inherited a structured settlement? You'll like this huge time saver. Click for a comprehensive list compiled by 4structures.com® LLC, 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, GE Capital, CNA) or changed its name and you're trying to track them down, here you go! The list is regularly updated. Last update April 2020.
  • 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 it here.

Contact Structured Settlement Expert John Darer®

About The Structured Settlement Blog

  • STRUCTURED SETTLEMENTS 4REAL® Blog Is a Popular Source of Structured Settlement News and Information, Settlement Planning, Tax Deferral and Deferred Income Planning Solutions,
    with a stable readership that seeks credible structured settlement information and/or opinion about topical issues related to settlement planning, targeted to lawyers, injured persons and their family members, guardians, survivors, judges, magistrates, special masters, mediators, administrators, trust companies, insurance company executives and adjusters, financial advisers settlement professionals, financial professionals, insurance regulators, government leaders, federal and state law enforcement, buyers and sellers of structured settlement payment rights, the news media and other interested parties. 4structures.com LLC established the structured settlement blog in 2005 to fill a need for critical commentary in an under-served.marketplace. The John Darer® authored blog has been among the most prolific, providing fresh structured settlement, settlement planning and litigation recovery management content and commentary regularly. John Darer®, CLU ChFC MSSC CeFT® RSP CLTC, President of Stamford, CT based 4structures.com, LLC, is an experienced New York City area structured settlement expert, structured settlement broker, Certified Financial Transitionist, and Registered Settlement Planner. WHAT YOU GET here is the straight stuff with a touch of irreverence and humor. We hope you enjoy and find the content to be helpful.. Subscribe to the structured settlement blog feed, or a specific category feed through your blog reader, or through the Feedburner on this page. Followers of JDDarer™ on Twitter may also receive select content. Thank you for reading!

New York City Structured Settlements

Connecticut Structured Settlements

Structured Settlements 4Real Reader Comments

  • "Impressive Blog" -Counsel to Am Law 200 ranked International Law Firm July 22, 2020
  • "Thank you so much for giving us your time and leading us in the right path , Thank you, you are a God send , God bless you in all your works" -K April 11, 2017
  • "Once again, I can't tell you how appreciative I am for your help. In today's day and age, it is rare that you actually find people who are willing to go the extra mile..." -TC May 5, 2015
  • "I wanted to send you this email to say Happy New Year to you and your family. May God continue to bless you. I am grateful that I had the opportunity to meet you on the phone. I truly thank you for introducing me and my son, (redacted) to (lawyer). It is people like you that God put in the path of my son situation. Thanks a million times! {original on file] 1-2-2015
  • "John Darer has been nothing but honest,helpful,informative with options, & his "time" was NEVER an issue!"-Andrew S 8/18/2012
  • " I wish there were more like you" JG 9-15-2014
  • In my opinion, John Darer is an excellent consumer advocate in the insurance industry. When I had no one else to turn to after running up against the stone walls of these giant insurance company, John Darer used hours of his own time to investigate my situation. Not only is this an invaluable service to me the consumer but it is also of great value to the insurance industry by providing them consumer feed-back. This allows the insurance companies to correct their faults and move toward greater transparency which improves the overall public image of the insurance industry as a whole" JW 9/4/2014
  • John, Keep fighting the fight. -NASP member 12-4-2013
  • John...Thank you for your professional advice-Brandon 11-13-2013
  • "...Thanks to Mr. Darer's blog and personal pointers I was able to obtain a fair price for the sale of client structured settlement. Therefore, if one has no choice, but to sell their settlement educate yourself first before selling start by reading John's blog" Mr P. 11/17/2012
  • "I always appreciate when he (John Darer) keeps us informed on regs and rules. No one does it better"- structured settlement industry colleague and reader RY 7/26/2012
  • "Amen - and continued thanks for your vigilance, John"- RL 8/18/2011
  • "Thanks for writing these great blogs on your site John! As an individual investor I have learned so much about the secondary market (for annuities, structured settlements, lottery payments, etc.) from your blogs and video series!!!" (6/5/2011)
  • I have found the intelligent and forthright information on your site a godsend. So much so I have tried in a small way to pass on my findings to others. Please keep up the good work and enhance your well deserved reputation as the authority on this subject- Mike 4/29/2011
  • John - I can't thank you enough for bringing this to my attention. In my wildest dreams... PJ-May 12, 2011
  • John, I love reading your blog! Not only have I found very useful information there, but the comedy is much appreciated! Thanks for talking about "the big pink elephant in the living room" that everyone else ignores! Thank you again for your help via phone and blog! I really needed to hear what you had to say today! BM 11/23/2010
  • John—this (video published 11/2010) is a well done piece. I like the way you always stick to the facts-AM
  • What a wonderful blog you have! I have completely enjoyed reading some of your posts (4/16/2010)
  • Thank you so very much for discussing my concerns about Symetra, my annuity company. I am amazed that PI attorneys as well as a settlement broker in San Diego, could not answer the simplest questions I had regarding the Safeco/Symetra issue. Your blog/web site is most interesting and informative, and I am grateful you have take on the "watchdog" role! Thank you so much again (3/25/10)
  • "Keep up the good work exposing abuses in our industry - our future depends on clients being properly advised."-CD
  • Just checked out your blog and loved it. Keep up the good and balanced work-DL
  • "...we have never met but I thoroughly enjoy your web site and blog - excellent material…-PB
  • "I enjoy your website and its content. Informative and well written"-JC
  • I heard a radio ad for the Peachtree Settlement Fund as I was driving into work this morning. (San Francisco Bay area.) I decided to check it out on the Internet and came upon your blog. Thank you very much. I do not have a “structured” settlement,
  • "All the others that I had emailed & have seen on the net were "cash now types" & have no concern of me & just are looking for my $$$. When I came across your site & blog I realized that u are an upstanding guy & are not like others. That's why I emailed"
  • This was Great. Right On Point-TS
  • "Other Than John Darer No One Seems To Be Doing Anything"-J
  • Thanks for your help and also for the good work you do on behalf of our industry-L
  • "Thank you for being the inspiration that you are and for being a strong advocate for integrity in our business"-KL
  • "I Commend You On Your Effort To Make a Difference!" -R
  • "He is a fabulous writer who has a great passion for the structured settlement industry. I commend him on the passion he invokes when he writes on his blog listed above. That type of commitment and passion is hard to find and is rare in this world" -AC

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.
  • Number of States That Prohibit Payment of QSF expenses by licensed agents and brokers
    5 Survey not yet complete.

Comments and Trackback Policy

  • Comments and Trackback Policy
    Comments to this blog are encouraged, welcome and add spice to the interactive nature of blogs. However, the unscrupulous practice by some to deliver comment spam, to connect all manner of unrelated products to structured settlements, detracts from user experience, is NOT tolerated by this author and thus necessitates the practice of comment screening.

Your email address:


Powered by FeedBlitz

Secondary Market Blawgs or Websites

Special Needs Blawgs and Resources

Subscribe to this blog's feed

Your email address:


Powered by FeedBlitz

Pages

Law Firm Blawgs

Blog Search Engines and Directories

Tax Deferral Resources | Defer Taxable Settlement

Other relevant websites and blogs of interest