Audit confirms $1.1 Billion securedfor Executive Life policyholders

November 5, 2006

California’s State Auditor’s review of the Department of Insurance’s handling of the Executive Life Insurance Co. estate confirms that appropriate actions have been taken on behalf of policyholders who were harmed by the company’s failure and its subsequent fraudulent acquisition by a French consortium, according to the Commissioner’s Office.

Specifically, the Bureau of State Audits (BSA) found that “[t]he commissioner has received over $1.1 billion in litigation proceeds from two significant legal matters on behalf of the estate since 1991” and that the expenditures made to obtain these recoveries were reasonable and appropriate.

“Our efforts to help make Executive Life policyholders whole again have resulted in recoveries of more than $1 billion on behalf of claimants,” said Commissioner John Garamendi. “I am pleased that the BSA audit confirms the appropriateness of our expenditures in these actions, and we will continue our work to recover additional funds, including the $700 million punitive damage award that is currently on appeal to the 9th Circuit Court of Appeals.”

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