Rethinking Insurance Guaranty Funds
December 23, 2012The failure of Executive Life Insurance Company of New York under the management of the New York Liquidation Bureau has raised a number of issues regarding the insolvency process in New York. Not the least of these issues is the fact that the court approved restructuring agreement addressing the $1.6 billion deficit has quite literally exhausted the funding available to the New York life guaranty funds for any future insolvencies. The Executive Life failure has also exposed the shortcomings of the life guaranty fund structure nationwide, particularly as applied to structured settlement annuities. My Insight column in the November 26, 2012 issue of Insurance Advocate (www.insurance-advocate.com) discusses these issues and offers some suggested changes that should be considered by legislators, regulators and the life insurance industry. A pdf copy of this column can also be downloaded from the publications page of my website at https://www.pbnylaw.com/publications/
What do you think?