The New York Liquidation Bureau has completed a plan that could lead to payment reductions for about 16% of the consumers who are getting payments linked to Executive Life Insurance Company of New York.
Executive Life of New York, Jericho, N.Y., entered rehabilitation in 1991 when its parent — Executive Life Insurance Company, Los Angeles – folded.
The Executive Life of New York estate has been responsible for making annual payments to individuals receiving benefits from structured settlements obtained through litigation. In 2007, New York state officials reported that the estate had started suffering from a noticeable shortfall in income around 2002.
Benjamin Lawsky, superintendent of the New York State Department of Financial Services, and James Wrynn, the court-appointed receiver for Executive Life, say the bureau now has filed legal papers that could lead to the liquidation of Executive Life of New York.