digplanet beta 1: Athena
Share digplanet:

Agriculture

Applied sciences

Arts

Belief

Business

Chronology

Culture

Education

Environment

Geography

Health

History

Humanities

Language

Law

Life

Mathematics

Nature

People

Politics

Science

Society

Technology

Executive Life Insurance Company (ELIC) was once the largest life insurance company in California. Its financial problems and subsequent insolvency in April 1991 [1] shocked its policyholders and the financial world.

At the time, First Executive was the biggest insurer ever to fail, which resulted primarily from money-losing investments in junk bonds. First Executive through Fred Carr had a strong association with Mike Milken and the brokerage firm Drexel Burnham Lambert, whereby at the end of 1990 the company owned high-yield debt, much of it issued through Drexel, with a carrying value of $9 billion.[2] According to Robert Sobel, First Executive was involved in 90% of Drexel's underwritings, which accounted for about $40 billion in bonds from 1982 to 1987.

After the State of California took over Executive Life, it sold the company's junk-bond portfolio to Altus Finance, a unit of Crédit Lyonnais, in November 1991 for $3.25 billion. Because banks were prohibited under the Glass–Steagall Act from owning insurance companies, Crédit Lyonnais organized an investor group to buy the insurance company operations, with the new company named Aurora National Life Assurance Co. Majority control of Aurora National was sold to Groupe Artémis in 1994.[3] In July 1998, an anonymous French whistle-blower told the California Insurance Department that Crédit Lyonnais was the real buyer of the insurance company and controlled it through secret agreements. In early 1999, the California Insurance Department sued the bank and other parties, alleging fraud and seeking $2 billion in restitution.[4]

In 2003, Crédit Lyonnais and others agreed to pay $771 million in settlements resulting from false statements to bank regulators in connection with the acquisition of junk bonds and the insurance business of the failed Executive Life Insurance Company of California.[5]

In 2001, Swiss Re took control of the Aurora National Life policies; Swiss Re fully acquired Aurora National Life in 2012.[6][7] In 2014, Aurora National Life was sold to Reinsurance Group of America[8]

A subsidiary, Executive Life Insurance Company of New York (ELNY), was seized by the state of New York, who sold the majority of the business to MetLife, retaining the structured settlement book of business. Due to mismanagement, ELNY was ordered to liquidate.[9] Guaranty Association Benefits Company took over the assets of ELNY in 2013.

References[edit]

  1. ^ Executive Life Insurance Company, Insolvencies and Impairments, NOLHGA website
  2. ^ Loomis, Carol J. (May 6, 1991). "What Fred Carr's Fall Means to You". Money (New York). 
  3. ^ "The French Connection - Forbes". Retrieved 2015-01-05. 
  4. ^ Rossant, John (July 29, 2001). "The Sword over Lyonnais". BusinessWeek (New York). 
  5. ^ "Credit Lyonnais and Others to Plead Guilty and Pay $771 Million in Executive Life Affair" (Press release). Washington, D.C.: United States Department of Justice. December 18, 2003. Retrieved 2013-11-24. 
  6. ^ "Swiss Re Affiliate Acquires Policies Of Executive Life Successor". LifeHealthPro. Retrieved 2015-01-05. 
  7. ^ "Aurora National Life deal closed in August". Retrieved 2015-01-05. 
  8. ^ "Reinsurance Group buying Aurora National Life : Business". Retrieved 2015-01-05. 
  9. ^ Coffin, Bill; Festa, Elizabeth; Hersch, Warren S.; Stanley, Michael; Moynihan, Shawn (November 2012). "The Complete ELNY Saga". National Underwriter Life & Health (Centennial, Colorado: Summit Business Media). Retrieved November 24, 2013. 

See also[edit]

External links[edit]



Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Executive_Life_Insurance_Company — Please support Wikipedia.
This page uses Creative Commons Licensed content from Wikipedia. A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia.
50459 videos foundNext > 

executive life insurance policy

The loss of a key employee can be devastating for any business. A top sales-person, the CFO, director of marketing, or the owner who manages everything all ...

(Executive Life Insurance Company Of New York)

http://mckellarstructuredsettlements.com/ Find out how you can get cash for structured settlements!

Executive Life of New York Liquidation-2 (ELNY) John Darer® /Mark Wahlstrom

Structured Settlement Experts John Darer® of 4structures.com LLC and Mark Wahlstrom of Wahlstrom & Associates renew their discussion about the Executive ...

Executive Life of New York, implications for policyholders of any proposed settlement

Mr.A J Bose, Executive Director Operations & Information Technology, SBI Life Insurance

Mr.AJ Bose of SBI Life Insurance says the concept of customer experience is gaining ground and insurers are trying to understand the ways and means to ...

Executive Life of New York- ELNY Why All Their Eggs in One Basket?

How to use life insurance for an executive bonus

Are you a business owner looking to help keep your executive staff on board? An executive bonus plan using life insurance can be a great way to reward ...

Funding an Executive Bonus Plan with Life Insurance (Producer)

Contact Financial Markets Inc for your turnkey sales kit today! www.fmiAgent.com 800-888-2829 Whether your clients own a large company or a small ...

Executive Bonus Plans: Tax Deductible Life Insurance Premiums in Section 162

brokersalliance.com (800)-290-7226 Presented by Brokers Alliance with guest co-host Ken Davis. Tax Deductible Life Insurance with 162 Non-Qualified ...

Darren Hired To Revamp Colonial Life Insurance Company's Sales Process.mov

In 2010, Darren Sugiyama was hired as a consultant to revamp the entire Colonial LIfe sales process, training 6000 agents nationwide... 450 district offices.

50459 videos foundNext > 

83 news items

 
San Fernando Valley Business Journal
Fri, 10 Jul 2015 11:45:00 -0700

“This settlement agreement closes the last chapter in the long dispute between the Department of Insurance and Artemis S.A., one of the purchasers of the Executive Life Insurance Company,” Jones said. “As a result…the total recovery in the Executive ...
 
YubaNet
Sun, 03 Jan 2016 09:15:00 -0800

This year Commissioner Jones brought to a conclusion a 15-year-old case involving Executive Life Insurance Company which was placed into liquidation over 25 years ago by the department, French company Artemis S.A. agreed to pay $200 million in ...
 
Insurance Journal
Thu, 10 Jun 2004 08:59:56 -0700

By pleading guilty, Berloty admitted that he helped conceal a series of secret agreements that allowed Credit Lyonnais to take control of the Executive Life Insurance Company of California. The case against Berloty is part of a larger criminal and ...

NBC 6 South Florida

NBC 6 South Florida
Wed, 15 May 2013 21:51:43 -0700

Many people who were injured years ago gave huge amounts to ELNY – the Executive Life Insurance Company of New York – and were put into annuities that would provide monthly payments. Since ELNY was based in New York, the state's insurance ...
 
Courthouse News Service
Fri, 11 Jan 2013 12:22:20 -0800

(CN) - New York is trying to silence concerns over the mismanagement of Executive Life Insurance Company of New York that jeopardizes $920 million worth of funds, a group of beneficiaries say. The state's superintendent of insurance took over Executive ...
 
Wall Street Journal
Mon, 16 Apr 2012 19:26:15 -0700

The order made Monday by Nassau County Supreme Court Justice John Galasso ends a 20-year attempt to salvage the Executive Life Insurance Company of New York (ELNY). The company was placed under the control of the... To Read the Full Story, ...
 
Sun-Sentinel
Thu, 14 Feb 2013 07:30:41 -0800

Ironically, the agency that was supposed to protect Culhane has convinced a New York court that he and about 1,500 other annuity recipients must give up a substantial portion of their monthly income because the Executive Life Insurance Company of New ...
 
Bisnow
Fri, 24 Oct 2014 15:05:55 -0700

Bisnow is pleased to announce our Fourth Annual BMAC conference on December 3rd, post-Turkey Day. This year, we're packing all the action into one full day of hard hitting content from the nation's top multifamily executives. Our panels will delve into ...
Loading

Oops, we seem to be having trouble contacting Twitter

Support Wikipedia

A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia. Please add your support for Wikipedia!

Searchlight Group

Digplanet also receives support from Searchlight Group. Visit Searchlight