Advertisement

July 24, 2014

Executive Life Insurance Company of New York (ELNY) Restructuring Agreement Closes, Shortfall Finalizations Near

On August 8, 2013, the Executive Life Insurance Company of New York (ELNY) Restructuring Agreement closed, following the denial of the last relevant appeal of the trial court’s Order of Liquidation and Approval of the Restructuring Agreement in May 2013.

With the closing of the Restructuring Agreement, approximately 1,500 ELNY annuities began to experience shortfalls, meaning less than the full amounts of the annuity payments are being made by the captive insurance company formed in connection with the Restructuring Agreement, Guaranty Association Benefits Company (GABC). At the same time, the final amounts of those shortfalls have not yet been determined, although that is expected to occur within the next month. 

In light of these events, many ELNY annuity owners are now directly confronted with numerous issues related to their exposure on the shortfalls, and are trying to determine what exactly they need to do to protect their interests, and when they need to do it. These issues include understanding Schedule 1.15 to the Restructuring Agreement, which sets forth in detail the amount of benefits that would be allocated to each of the ELNY annuities; analyzing whether those benefits comport with the amounts to which annuity owners are entitled under the various state guaranty association acts; analyzing how shortfalls otherwise may be reduced or eliminated; assessing methods of funding any shortfalls, both in the short-term and long-term; and understanding the various other agreements and schedules related to the Restructuring Agreement, including the ELNY Facilitation Plan and the GABC Owner Payment Schedules. We have analyzed these and other issues for many ELNY annuity owners. 

©2014 Drinker Biddle & Reath LLP. All Rights Reserved

About the Author

Partner

Michael Miller has been assisting clients in connection with insurance, environmental, business, and intellectual property issues for approximately twenty years. Michael is a trial lawyer who has litigated and tried cases before judges and juries in state and federal courts across the country. Michael also assists clients with transactional matters, including complex insurance and annuity issues and complex environmental risk transfer issues.

Insurance Litigation.  Michael's insurance litigation practice is national in scope. He has...

(215) 988-2782

About the Author

Partner

Timothy J. O'Driscoll is a partner in the firm's Life Insurance & Annuities Practice Group, with experience in a broad range of insurance and commercial litigation.

Tim's insurance litigation experience includes coverage disputes in state and federal courts across the country, involving property and casualty, life, long-term care, and annuity policies and contracts. His commercial litigation experience includes breach of contract and business tort claims. He has successfully resolved many cases, winning jury trials and dispositive pre-trial...

(215) 988-2865

Boost: AJAX core statistics

Legal Disclaimer

You are responsible for reading, understanding and agreeing to the National Law Review's (NLR’s) and the National Law Forum LLC's  Terms of Use and Privacy Policy before using the National Law Review website. The National Law Review is a free to use, no-log in database of legal and business articles. The content and links on www.NatLawReview.com are intended for general information purposes only. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.  

Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The National Law Review is not a law firm nor is www.NatLawReview.com  intended to be  a referral service for attorneys and/or other professionals. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional.  NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 

Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Statement in compliance with Texas Rules of Professional Conduct. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials.

The National Law Review - National Law Forum LLC 4700 Gilbert Ave. Suite 47 #230 Western Springs, IL 60558  Telephone  (708) 357-3317 If you would ike to contact us via email please click here.