Below are answers to some frequently asked questions regarding the Executive Life Insurance Company litigation settlement distribution that is scheduled for September 29-October 3, 2016. Although we can't address each individual circumstance specifically, we hope that these responses will be sufficient to answer, at least in part, your questions regarding Executive Life.
Can you refresh my memory regarding the Executive Life Insurance Company litigation?
The Insurance Commissioner of the State of California, on behalf of policyholders of Executive Life Insurance Company, filed a complaint against certain parties in 1999 for fraud related to the purchase of Aurora National Life Assurance Company (the Altus litigation). In 2005, the Insurance Commissioner received $700 million in settlement proceeds related to this case, which was distributed in 2006-2010. Meanwhile the Commissioner continued to pursue his complaint against the remaining defendant. In 2015, a settlement was reached with the last remaining defendant in the 16-year-old lawsuit.
What money is being distributed?
A settlement was reached in 2015 with the last remaining defendant in a 16-year-old lawsuit brought by the California Department of Insurance that arose out of the 1991 liquidation of Executive Life Insurance Company. The French company Artemis S.A. has agreed to pay $200 million in addition to $110 million previously paid and distributed to policyholders in 2006/2007. The National Organization of Life and Health Guaranty Associations and the California Life and Health Insurance Guarantee Association also joined in the settlement. For further information, see document posted above - NOTICE OF MOTION AND MOTION OF INSURANCE COMMISSIONER OF THE STATE OF CALIFORNIA FOR AN ORDER APPROVING INTERIM DISTRIBUTION OF $110.8 MILLION OF ESTATE ASSETS PURSUANT TO ELIC REHABILITATION PLAN filed June 29, 2016.
Am I entitled to a part of the distribution of settlement proceeds occurring this year?
If you were an Executive Life Insurance Company policyholder on September 3, 1993 you may be entitled to a portion of the settlement. The amount to which you may be entitled is subject to a number of factors. We do not disclose individual distribution amounts for security reasons.
What is the total amount of the distribution?
The interim distribution amount will be approximately $110 million. This is further broken down, with approximately $75 million being distributed to Opt-In policyholders, and $35 million to Opt-Out policyholders.
Is there more litigation pending?
No. The 16-year-old lawsuit on behalf of the former ELIC policyholders was finally settled in full, and this interim distribution represents the bulk of the settlement proceeds.
Is this the final distribution?
No, we are planning one final distribution after the IRS has made a final tax determination on the settlement proceeds. The Commissioner has filed the appropriate documents with the IRS, and is waiting for a final tax determination before making the final distribution. At this time, a final distribution is contemplated for 2017. That distribution will be smaller than this current one. After that time, the Executive Life estate will close. Be sure to keep your mailing information current in order to ensure you receive your allocation portion of any final distribution.
How much money do I get?
As with all distributions under the Plan this amount will be distributed pro rata based on relative claim values.
It is impossible to determine how much any eligible contract holder will receive until all calculations are made. It is our practice not to disclose individual check amounts, even when known, for security reasons.
Do I need to update my address to receive this distribution or any final distribution?
As a former policyholder, you are responsible for providing your updated mailing address in order to ensure you receive your allocated portion of the settlement proceeds. Updated address information may be provided in writing to:
For Opt In contractholders: Aurora National Life Assurance Company, P.O. Box 4490, Hartford, CT 06147-4490. Phone: (800) 265-2652
For Opt Out contractholders: California Conservation and Liquidation Office (CLO), Attn: ELIC, P.O. Box 26894, San Francisco, CA 94126-6894. Phone: (415) 676-2179
The contract holder you have in your records has passed away, what do I do now?
If the contract holder "opted in" to the ELIC Rehabilitation Plan and received a policy from Aurora you need to contact Aurora at (800) 265-2652. Aurora will provide you with a list of the information they require.
If the contract holder "opted out" of the Rehabilitation Plan, we will require a certified copy of the death certificate as well as a certified copy of the Letters Testamentary or an applicable Small Estate statute or court order and any other legally binding document from the executor or the duly authorized responsible person. The documents should clearly indicate the name, address, social security number and telephone number of the responsible party. The papers, as well as a completed address update form must be returned to our office. The address update form can be obtained by calling (415) 676-2179. The mailing address is P.O. Box 26894, San Francisco, CA 94126-6894. Should such documents be unavailable in your state, upon receipt of a death certificate we can make checks payable to the "Estate of" the deceased contract holder.
I have a new last name. What will you require from me?
If you "opted in" to the ELIC Rehabilitation Plan and received a policy from Aurora you need to contact Aurora at (800) 265-2652. Aurora will provide you with a list of the information they require.
If you "opted out" of the ELIC Rehabilitation Plan and have changed your name due to a divorce or marriage, send in the legal documents verifying the name change along with a completed address update form which can be obtained by calling (415) 676-2179.
