We write to provide an important update concerning Executive Life Insurance Company of New York (“ELNY”).
By way of background, pursuant to an April 23, 1991 court order, ELNY was placed into rehabilitation and the Superintendent of Insurance of the State of New York (“Superintendent”) was appointed as the rehabilitator. Rumors of a liquidation have been circulating since at least as early as 2006, when the Superintendent reported an approximate $600 million shortfall in funds needed to meet ELNY’s obligations, most of which arise from structured settlement annuities issued by ELNY. In December 2010, the Supreme Court of Nassau County, New York issued an Order to Show Cause giving the Superintendent until July 1, 2011, to confer with The Life Insurance Company Guaranty Corporation of New York (“LICGNY”) and other interested parties in order to develop and file an agreed liquidation plan. (The Order to Show Cause stated that, if an agreed liquidation plan could not be reached by July 1, then the Superintendent would have until Aug. 1 to apply for an order of liquidation.) The Superintendent subsequently requested several extensions of the July 1 deadline, and the deadline was ultimately extended until yesterday, Sept. 1.