Executive Life of New York - 2

A New York State Supreme Court Judge has ordered the Superintendent of the New York State Insurance Department to present the Court with a proposed order and plan of liquidation for Executive Life Insurance Company of New York (ELNY) on or before July 1, 2011 which establishes a briefing schedule and provides for notice to all ELNY creditors, after the Superintendent confers with the Life Insurance Company Guaranty Corporation of New York (Guaranty Corporation) and other interested parties.

The "Order to Show Cause" was issued by Nassau County New York State Supreme Court Judge John M. Galasso on December 17, 2010 - more than three years after then New York Governor Eliot Spitzer announced an "agreement in principle" to resolve the financial problems of Executive Life of New York (ELNY).

The December 17, 2010 "Order to Show Cause" also ordered that:

• If the New York Insurance Superintendent, as ELNY's Rehabilitator, is unable to present a proposed plan to the Court on or before July 1, 2011, then the Superintendent must submit papers in support of an application for an order of liquidation on or before August 1, 2011 and must provide notice of papers, plus a copy of the December 17, 2010 Order, to the Guaranty Corporation and all persons as directed by the Court;
• Any answering papers must be filed and served upon the Superintendent by November 11, 2011, and any reply papers must be filed and served by the Superintendent by December 16, 2011;
• The Guaranty Corporation and other parties wishing to be heard must appear before the Court on January 4, 2012, at 9:30 a.m. to show cause why the Court should not grant an order of liquidation for ELNY;
• The Order of Rehabilitation for ELNY entered on April 23, 1991 and the December 16, 1992 Order approving the Plan of Rehabilitation for ELNY continue in force and effect, including the provisions providing for payments to structured settlement and other annuitants; and
• The Superintendent must serve a copy of the Order to Show Cause upon the Guaranty Corporation within five (5) days following the signing of the December 17, 2010 Order.

ELNY has been in rehabilitation since 1991. The most recent audited financial statements were published July 28, 2010 and indicate that ELNY had total admitted assets of $984,021,594 compared with total liabilities of $2,516,254,541 as of December 31, 2009.

For S2KM's complete and continuing coverage of Executive Life of New York, see S2KM's structured settlement wiki.