A policyholder group is asking California regulators for more documentation of policyholder losses resulting from the collapse of Executive Life Insurance Company.[@@]
The group, the Executive Life Action Network, Los Angeles, also is rejecting statements by regulators that most of the 330,000 affected policyholders have been made whole.
Credit Lyonnais, a bank owned by the French government, owned Executive Life in 1991, when the California life insurer failed. California laws in effect at the time prohibited foreign governments from owning California insurance companies.
Federal prosecutors have negotiated a settlement with Credit Lyonnais and the French government, and California Insurance Commissioner John Garamendi says his civil suit against the Executive Life defendants should go to trial in February 2005.
The Executive Life Action Network has released a statement complaining about its members’ lack of access to records Garamendi holds that relate to the Executive Life case.
The policyholders’ “losses should be at the core of his lawsuit; yet we have to resort to filing a public records request to demand that he put them on the table,” Maureen Marr, the group’s co-founder, says in the statement. “Policyholders are at risk because Insurance Commissioner Garamendi has not directly countered — in public or in court — defendants’ claims that there were no real losses.”
Garamendi’s claims that policyholders were made whole “are hampering the policyholders’ hopes for recoveries,” Marr says.