New York State’s Financial Services Superintendent Ben Lawsky announced the publication of the New York Liquidation Bureau’s 2012 annual report. The report said that last year the Bureau distributed a record $345.6 million in estate assets to insurance policyholders, claimants and creditors — while also reducing the number of outstanding policyholder claims by nearly one-third.
The New York Liquidation Bureau (NYLB) is responsible for managing the affairs of insurers that are financially impaired or insolvent. It carries out the duties of the state’s financial services superintendent in his capacity as receiver of impaired or insolvent domestic insurance companies, under New York Insurance Law Article 74.
As of year-end 2012, the NYLB was responsible for the administration of 34 domestic estates, 21 ancillary estates, four rehabilitations, five conservations, and 46 fraternal benefit societies.
At the end of 2012, there were a total of approximately 15,000 claims outstanding for the domestic and ancillary estates, down from a total of approximately 21,000 in 2011. Over 6,000 claims were resolved in 2012, with more than half closed without payment, the NYLB report said.
Superintendent Lawsky said: “The Bureau is making significant progress in resolving claims so that money gets out the door faster to the policyholders and claimants. We are closing a number of longstanding estates and accelerating the pace of newer estates closings.”
The $345.6 million distributed last year — a record high — compares to $84.7 million distributed in 2011. The distributions included $192.7 million paid from five domestic estates in liquidation which were closed in 2012, plus $152.9 million in early access and interim distributions from an additional 15 domestic estates in liquidation.
The Bureau said it has targeted at least 10 additional domestic estates for closure by the end of 2013.
“While the Bureau made significant progress last year, it won’t rest on its laurels. It will continue to build on that foundation and work hard to handle claims and make distributions to stakeholders in a responsible and expeditious manner,” Superintendent Lawsky said.
The New York Liquidation Bureau’s 2012 annual report is available at the NYLB website (a PDF file).
Source: New York State Department of Financial Services
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