View this article online: https://www.insurancejournal.com/news/southeast/2020/12/01/592286.htm
A North Carolina Superior Court gave approval to the state’s insurance regulator to modify the moratorium on insurance businessman Greg Lindberg’s financially impaired Colorado Bankers and Bankers Life Insurance Companies. The order allows annuity contract owners to withdraw limited funds to help during the pandemic, according to a statement from the North Carolina Department of Insurance.
Lindberg was recently sentenced to prison for corruption-related convictions.
North Carolina Insurance Commissioner Mike Causey said last month that Wake County Superior Court granted him flexibility to assist people holding annuity contracts with two insurance companies, Colorado Bankers Life Insurance Co. and Bankers Life Insurance Co., currently in rehabilitation under NCDOI’s oversight.
The order allows the annuity contract owners with these two companies to have a one-time option for a limited partial withdrawal of funds.
The companies were placed in rehabilitation last year under a consent order with their principal owner, Durham businessman Lindberg now in federal prison serving a seven-year sentence for trying to bribe Causey.
The moratorium on withdrawing funds is common when insurance companies are placed in rehabilitation to help improve their financial stability, NCDOI said.
While a previous order from the court allowed for limited hardship exemptions from a moratorium on payouts from the insurance companies, the new order helps ease the financial distress for beneficiaries and annuity contract owners caused by the COVID-19 pandemic.
Causey serves as the companies’ rehabilitator by overseeing their financial recovery.
“I requested this action so that the innocent policyholders in these companies could obtain some financial relief during the COVID-19 pandemic that has economically crippled so many families and businesses,” said Causey.
The limited moratorium modification will work as follows:
The withdrawals must not involve the transfer or exchange of funds to another carrier. It also does not include certain minimal face value annuities, or the cash value of any life policy, as any life policy will continue to remain in force. The total distributable value to annuity contract owners is approximately $208 million.
This order does not mean the moratorium has been lifted or that rehabilitation is over.
Annuity contract owners will receive a letter explaining they are eligible for a one-time option for a limited partial withdrawal of funds. The insurance companies have partnered with Kurtzman Carson Consultants LLC (KCC) as the administrator for this process.
Each letter will provide instructions on how annuity contract owners should submit their request through KCC. For additional information, contact KCC at 1-844-926-1524.
Source: North Carolina Department of Insurance