Colorado Bankers (CB Life)...

[kevharper]

Just saw this in my news fees. Whoo hoo! Hopefully no more delays.

 

[ccwpc]

I guess this is progress?

NC Appeals Court Gives Green Light to Liquidation of Lindberg Insurance Firms

Former North Carolina insurance and business mogul Greg Lindberg has lost an appeal on whether one of his companies can delay the liquidation of two of

www.insurancejournal.com

 

[Dan T]

Until whats his name files another appeal then another year for the Supreme Court to hear the case

 

[rats0001]

May 6 is coming closer every day. Ahole back to prison, hopefully.

 

[ccwpc]

So the liquidation will trigger the SGA process of paying policyholders' claims, hopefully. So how about the liquidation of Cblife itself? Does that mean any remaining assets will be divided up and distributed to policy holders? Or is there nothing left?

 

[Jrbeccles]

There will be a number of policyholders that won't be made fully whole by the SGAs in their state. I assume there will be some process for them to make a claim against the remaining assets for any shortfall balance.

 

[Allen Trent]

There will be a number of policyholders that won't be made fully whole by the SGAs in their state. I assume there will be some process for them to make a claim against the remaining assets for any shortfall balance.

I hope you are right, but I dont think that is how it works. The State Guaranty Associations bill the good insurance companies in each state to make up the shortfall of guaranties. The shortfall would already have been calculated after full liquidation of all assets of the failed carrier & creditors paid. Last I read, there was way more liabilities than assets, so creditors of the failed carrier would get the funds from any assets liquidated.

Here is how I tend to think of it.

If I am a builder of commercial buildings & a bank loaned a business money to build themselves a new factory. If the business fails during construction, the bank will get any money from the sale of the building & business assets, but the builder would possibly not get paid for outstanding bills unpaid by the business that hired him. Secured creditors are 1st in line, then creditors, not customers.

only additional money I see CBL policyholders getting would be from suing the agent or bank that sold them the annuity if there was some legitimate reason for a judgement against the agent/bank.

I know small insurance companies that will be receiving bills for several million dollars in the upcoming months from the state guaranty associations for their share of the CBL crime they had nothing to do with

 

[jdeasy]

There will be a number of policyholders that won't be made fully whole by the SGAs in their state. I assume there will be some process for them to make a claim against the remaining assets for any shortfall balance.

Not really how it works. There is no money in any state guaranty fund.

Once all avenues to collect from the offending company have been exhausted they will bill, (assess), all the members of the state guaranty fund, {insurance companies), and they are to pay the damages on a pro rated basis.

Some of those companies, if not most, will still fight it and claim that all avenues have not been exhausted. They will delay as long as they can.

 

[Jrbeccles]

Understood. I was just going from the info that is in the NC department of Insurance FAQ's which states that:
"Policies in excess of state life and health insurance guaranty association coverage limits would give rise to a pro-rata claim against the Colorado Bankers Life liquidation estate for the uncovered amount (the “excess policyholders”).
Of course, if the estate funds are exhausted or divided amongst the various SGAs then I guess you are out of luck trying to get anything NOT covered by your state SGA back.

 

[ACDC]

The verdict is certainly good news for the policy holders. Most policy holders have their retirement fund tie up in this legal mess.