In August 2013, the our firm's Insurance group closed on one of the most nationally significant insurance company liquidations the industry has ever seen. In 1991, Executive Life Insurance Company of New York (ELNY) went into rehabilitation. By 2006, it was apparent that the ELNY rehabilitation plan would not succeed. The state life and health insurance guaranty associations began working with the New York Superintendent of Insurance and the life insurance industry on a solution.
NOLHGA asked the firm to become involved in this liquidation in 2006. Our representation of NOLHGA in this matter included negotiating the Agreement of Restructuring and related agreements, including reinsurance agreements with 39 of the nation’s largest life insurance companies; defending against objections to the liquidation in the New York Supreme Court and Court of Appeals; forming a captive insurance company to serve as the vehicle to run off approximately $1.5 billion of ELNY’s annuities for decades; and being involved in every aspect of the transition of more than 9,000 annuities from ELNY to the guaranty associations.