On August 8, 2013, the Executive Life Insurance Company of New York (ELNY) Restructuring Agreement closed, following the denial of the last relevant appeal of the trial court’s Order of Liquidation and Approval of the Restructuring Agreement in May 2013.

With the closing of the Restructuring Agreement, approximately 1,500 ELNY annuities began to experience shortfalls, meaning less than the full amounts of the annuity payments are being made by the captive insurance company formed in connection with the Restructuring Agreement, Guaranty Association Benefits Company (GABC). At the same time, the final amounts of those shortfalls have not yet been determined, although that is expected to occur within the next month. 

In light of these events, many ELNY annuity owners are now directly confronted with numerous issues related to their exposure on the shortfalls, and are trying to determine what exactly they need to do to protect their interests, and when they need to do it. These issues include understanding Schedule 1.15 to the Restructuring Agreement, which sets forth in detail the amount of benefits that would be allocated to each of the ELNY annuities; analyzing whether those benefits comport with the amounts to which annuity owners are entitled under the various state guaranty association acts; analyzing how shortfalls otherwise may be reduced or eliminated; assessing methods of funding any shortfalls, both in the short-term and long-term; and understanding the various other agreements and schedules related to the Restructuring Agreement, including the ELNY Facilitation Plan and the GABC Owner Payment Schedules. We have analyzed these and other issues for many ELNY annuity owners.