Below are answers to some frequently asked questions regarding Executive Life Insurance Company litigation that is set to begin on February 18, 2005. 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.
- Am I entitled to a part of the $110 million settlement that occurred last 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, including the extent to which your contract was enhanced by the guaranty association in your state and the subrogation rights of that guaranty association. These matters are the subject of a dispute between the Commissioner and the guaranty associations, and generally only apply to contracts who "opted in" to the Executive Life rehabilitation plan (the "Plan") and whose contracts were reinsured by Aurora National Life Assurance Company ("Aurora"). Based on the provisions of the Plan, the court has approved arbitration proceedings concerning the rights of the guaranty associations with regard to distribution of these and related litigation proceeds to opt-in contract holders. Distributions to opt-in contract holders will remain on hold pending the results of the arbitration proceedings.
For those contracts who "opted-out" of the Plan, on October 12, 2005, the Court granted the Commissioner the right to distribute that portion of the $110 million settlement which is allocable to opt out contract holders (approximately $33.9 million). As with all distributions under the Plan this amount will be distributed pro rata based on relative claim values. No distributions of additional litigation proceeds may occur without obtaining the approval of the Court.
- What about the most recent settlement of $80 million?
The recent settlement of $80 million between Aurora National Life Assurance Company ("Aurora") and the Insurance Commissioner will be subject to the same issues and process as the $110 million settlement discussed above. At this time, the Court has not approved the distribution of any portion of these funds.
- I am an "opt out" contract holder. When can I expect to receive any money?
We are in the process now of sending IRS required tax election letters out to the individual opt out contract holders that will be part of this distribution. Once we have verified the necessary information, we expect to distribute the funds in the first quarter of 2006.
- How much money do I get?
It is impossible to determine how much any eligible contract holder will receive until all calculations are made. It is our practice to not disclose individual check amounts, even when known, for security reasons.
- 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 a 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 94126-0984. 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.
