by John Darer CLU ChFC MSSC RSP CLTC
New York's highest Court has denied the motion for leave to appeal filed by attorneys on behalf of several ELNY shortfall victims.
see In the Matter of Executive Life Insurance Company of New York, Superintendent of Financial Services, &c.,Respondent; Jennifer Aracil Appling, et al.,Appellants; National Organization of Life and Health Guaranty Association, &c.,Nonparty-Respondent. Mo. No. 2013-298 May 2, 2013
The ELNY Liquidation is expected to affect approximately 1,400 annuitants who entered into structured settlements funded by Executive Life Insurance Company of New York annuities between 1982-1988. The ELNY victims had questioned New York's insurance regulators and administrators of the rehabilitation and fairness of the Executive Life Insurance Company of New York liquidation process.
While we sympathize with the victims, we have questioned the "all your eggs in one basket" planning that was done that indisputably plays a role in leaving these folks in this unfortunate predicament. Fortunately I resisted selling ELNY products during what were the early years of my career.
That being said, one wonders why the New York Liquidation Bureau did not try to negotiate a settlement with the affected annuitants, I'd be interested to know whether they legally could have and if so, whether this was a viable option that was explored. At least I have not heard of any efforts to do so.
Under the approved ELNY liquidation plan, a new insurer is going to be set up and staffed up with its attendant administrative expenses, ostensibly from the same dwindling ELNY pot. My fear for some payees is that some of them will be preyed upon by "the bad guys" in the secondary structured settlement market and will suffer further losses.