There still is a brisk market for sellers of structured settlement payment rights to Executive Life of New York structured settlements. Apparently, willing buyers can score cash flows with Internal Rates of Return of 6% over the next 3-4 years. Examples (A) For about $100,000, you can get an immediate payout starting May 1, 2011 for 4 years and 7 months of $1,888.57 per month for 55 months with 4% compound increases. (B) $116,000 lump sum in 3 years. 6% is 3 times the 5 year Treasury Rate at time of posting. That's quite a risk premium for those who have the appetite. THIS IS NOT FOR THE TIMID, however!
Executive Life of New York has been in rehabilitation since 1991.
On December 17, 2010 New York State Supreme Court Judge John M Galasso ordered the Superintendent of Insurance of the State of New York, in his capacity as Rehabilitator, to present the Court with a proposed order and plan of liquidation for Executive Life Insurance Company of New York(ELNY) on or before July 1, 2011 which establishes a briefing schedule and provides for notice to all ELNY creditors, after the Superintendent confers with the Life Insurance Company Guaranty Corporation of New York and other interested parties
One of our sources tells us that there is a belief among factoring companies that there is enough in the Executive Life of New York tank to go out 4 years which jives with the types of deals being offered to buyers of structured settlement payment rights, examples of which I've shown above.
The next question is IFyou are an annuitant with an Executive Life of New York structured settlement should you explore a structured settlement factoring transaction, or wait it out? On the one hand is it not like waiting to see if "Jordan" hits the fade away 3 pointer at the buzzer.? Will the receiver catch the "Hail Mary" pass as time runs out? In my opinion you should explore whether selling the rights to your Executive Life of New York structured settlement makes sense at this time.
A Few More Talking points
- Call and speak to the New York State Liquidation Bureau Telephone 212-341-6400 FAX 212-964-7963; or New York State Insurance Department. Ask how your class of claimant is protected. Was your structured settlement assigned or was it owned by the Defendant or Defendant's insurer?
- One of the factors may be what class of Executive Life of New York claimant you are
- One thing you shouldn't do is jump at the first offer. Shop around!
- Selling means selling future payments at a discount. If there is any further deterioration in the Executive Life of New York estate, the discount may go up or, the secondary market may not be available.
- Work with a financial professional familiar with structured settlements.
- If you decide to try to sell, the "structured settlement factoring transaction" will need to be approved by a Court, where a judge will determine if it is in your best interest and the best interest of your dependents.
Further information
- Watch this space! Our ongoing Executive Life of New York coverage continues with a podcast featuring John Darer and Mark Wahlstrom on Legal Broadcast Network that will air shortly.
- The National Structured Settlement Trade Association delivers its ELNY report to its membership at its annual meeting in mid-May in La Jolla California. Expect NSSTA to deliver a public FAQ sometime thereafter through its membership.
- Read our previous posts on Executive LIfe of New York which should be of interest to Executive Life of New York annuitants, attorneys,judges and insurers.
Executive Life of New York: What Happens If My Insurance Company Goes Belly Up? March 15, 2011
Executive Life of New York: What's Going On? Compilation of articles , historical perspective
"Should I stay or should I go now?
If I go there will be trouble
An’ if I stay it will be double" Mick Jones, The Clash , circa 1982
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