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JEFFREY L. SCHAFFER (Bar No. 91404)
ETHAN P. SCHULMAN (Bar No. 112466)
HOWARD, RICE, NEMEROVSKI, CANADY,
FALK & RABKIN
A Professional Corporation
Three Embarcadero Center, 7th Floor
San Francisco, California 94111-4065
Telephone: 415/434-1600
Facsimile: 415/217-5910
Attorneys for the Insurance Commissioner of the
State of California in his capacity as Conservator,
Liquidator and Rehabilitator of Executive Life
Insurance Company
SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
INSURANCE COMMISSIONER OF THE
STATE OF CALIFORNIA,
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Applicant,
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v. |
EXECUTIVE LIFE INSURANCE
COMPANY, a California corporation, and
DOES 1 through 1000,
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Respondents.
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No. BS 006912
ORDER
GRANTING MOTION OF INSURANCE
COMMISSIONER OF THE STATE OF
CALIFORNIA FOR AN ORDER
APPROVING DISTRIBUTION OF OPT
OUT TRUST PORTION OF AURORA
SETTLEMENT AMOUNT AND CDR
SETTLEMENT AMOUNT (AFTER
ESTABLISHMENT OF EXPENSE
RESERVE) PURSUANT TO ELIC
REHABILITATION PLAN
Date: January 18, 2006
Time: 8:30 a.m.
Dep't: 36
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This matter came before the above-captioned Court (the "Court") on the motion (the "Motion"), dated December 13, 2005, of the Insurance Commissioner of the State of California, in his capacity as conservator, liquidator and rehabilitator (the "Commissioner") of Executive Life Insurance Company ("ELIC"), for an order approving the distribution of the Opt Out Trust Portion of the Aurora Settlement Amount and the CDR Settlement Amount (after establishment of the Expense Reserve) pursuant to the ELIC Rehabilitation Plan. Jeffrey L. Schaffer of Howard Rice Nemerovski Canady Falk & Rabkin, A Professional Corporation, appeared on behalf of the Commissioner at the hearing on the Motion held by the Court on January 18, 2006 at 8:30 a.m. (the "Hearing"). Other appearances at the Hearing were as noted on the record. The Court having considered the papers filed in support of and in opposition or other response to the Motion, the statements and arguments of counsel at the Hearing, and all pertinent pleadings filed with the Court; and all capitalized words or terms not defined herein having the meanings ascribed to them in the Motion; and due and proper notice of the Motion and the Hearing having been given; and after due deliberation and consideration and good and sufficient cause appearing therefor,
THE COURT HEREBY ORDERS AND ADJUDGES THAT:
- The Motion is hereby granted.
- The Commissioner shall distribute to the Opt Out Trust:
- approximately $23.1 million from the Aurora Settlement Amount (which is (i) the Opt Out Trust Portion of the Aurora Settlement Amount minus (ii) $3.6 million to be deducted therefrom for expenses, which $3.6 million shall constitute part of the Expense Reserve), with such $23.1 million amount to be distributed by the Opt Out Trust pro rata based on relative claim values to the Opt Out Contract Holders that are the beneficiaries of the Opt Out Trust (subject to the "de minimis" exception described in Part IV of the August 31 Motion); and
- approximately $151.6 million from the CDR Settlement Amount (which is (i) the Opt Out Trust Portion of the CDR Settlement Amount minus (ii) $23.5 million to be deducted therefrom for expenses, which $23.5 million shall constitute part of the Expense Reserve), with such $151.6 million amount to be distributed by the Opt Out Trust pro rata based on relative claim values to the Opt Out Contract Holders that are the beneficiaries of the Opt Out Trust (subject to the "de minimis" exception described in Part IV of the August 31 Motion);
- Before making any distribution authorized under paragraph (2)(a) above, the Commissioner shall deduct from the Aurora Settlement Amount the sum of $3.6 million for the Expense Reserve; and before making any distribution authorized under paragraph (2)(b) above, the Commissioner shall deduct from the CDR Settlement Amount the sum of $23.5 million for the Expense Reserve;
- The Commissioner shall make no further distributions of any Altus Litigation Proceeds (including, without limitation, the balance of the CDR Settlement Amount and the balance of the Aurora Settlement Amount) without obtaining approval of the Conservation Court after making a motion on appropriate notice; and
- The Commissioner and NOLHGA reserve all of their respective rights with respect to any dispute they may have regarding all other amounts that arc to be distributed by the Commissioner, including, without limitation, their rights with respect to all other Altus Litigation Proceeds that are maintained by or in the future are paid to the Commissioner, and their rights with respect to the May 13, 2005 letter agreement between the Commissioner and NOLHGA.
JAN 18 2006 |
Gregory W. Alarcon HON. GREGORY ALARCON JUDGE OF THE SUPERIOR COURT |