by John D. Darer CLU ChFC CSSC RSP
According to Peter Bickford's latest post, "[t]he 1992 ELNY rehabilitation Plan, like the Titanic, was doomed the moment it left port..." (emphasis added) How was it doomed? Bickford points out ELNY's original rehabilitation plan "stripped out all the traditional life and annuity business and transferred it to Met Life with the supporting, statutory reserve assets. These contract holders received an equivalent policy from Met Life and suffered no material financial consequences..... [F]or whatever reason the most volatile, long-tailed book of ELNY business [single premium immediate annuities (SPIAs) including all structured settlements] was left in ELNY together with its weakest assets."
Incredibly, after 1992, some structured settlement brokers mischaracterized, through ignorance (in some cases even misrepresented), to clients and potential clients, the extent of MetLife's involvement when it came to ELNY structured settlement annuities, to defray potential panic and to support ongoing sales of structured settlements.
Peter H. Bickford is an independent counselor and arbitrator focusing particularly in the areas of insurance and reinsurance operational, regulatory and solvency issues. In addition to being a practicing attorney for over 30 years, he has been an officer of both a life insurance company and a property/casualty insurance and reinsurance facility with line responsibility for its contract and claims operations. He has written a number of excellent articles about insurance insolvencies and ELNY in particular.
Read The Trouble With ELNY (Or How the Receivership Process Has Failed Executive Life Insrance Company of New York, Its Policyholders and Annuitants" by Peter H. Bickford February 2012
In the dramatic conclusion to the 1996 movie A Time To Kill, based on the John Grisham novel, a young lawyer Jake Brigans is doing is summation at the end of a trial in which he defends a black man accused of murdering two men who raped his 10-year-old daughter, sparking a rebirth of the KKK. He asks the jury to close their eyes as he paints a vivid and powerful picture of what happened to the young black girl, drawing tears from some jury members, and he ices the summation with the coup de grace 'now imagine if she was white" I'm going to be as be neither as dramatic nor eloquent, but I AM going to be as raw.
To the powers that be...Close your eyes, Have someone else read this to you and then imagine if it was from you or one of your loved ones.
Unbelievable that I get to be victimized, twice. And now my children get to suffer too. Nice.
I don't understand how in the world that the Hardship Fund is NOT set up yet?? I can't receive any updated information from them.
Thank you for all that you are posting. I can't even begin to tell you how appreciative I am".
-Executive Life Insurance Company of New York structured settlement annuitant February 16, 2012