Continental General Insurance Company has acquired 60,000 life insurance policies and annuity contracts issued by Southland National Insurance Corp.
Continental General said it is now responsible for all of the policies and has received all of the associated assets and liabilities.
Earlier this year, the Austin, Texas-based company acquired 91,000 policies and contracts written by Colorado Bankers Life Insurance Company and Bankers Life Insurance Company.
Bankers Life has no connection with CNO Financial's Bankers Life and Casualty subsidiary.
Southland National, Colorado Bankers Life and Bankers Life were subsidiaries of Global Bankers Insurance Group, a company that was controlled by Greg Lindberg.
Continental General, a company that has a history of assuming and administering unwanted blocks of insurance business, acquired the policies and contracts from the National Organization of Life & Health Insurance Guaranty Associations.
NOLHGA — an organization that helps state guaranty associations provide guarantees for products issued by failed life and annuity issuers — took control of the customer relationships after regulators liquidated the issuers.
What it means: For advisors with clients who have Southland National products, the deal will change the contact information for the products.
For other advisors, the deal may provide an example that shows what happens to life policyholders and annuity contract holders affected by issuer liquidations.
The backdrop: Lindberg, an entrepreneur, acquired several life, health and annuity issuers over the years.
North Carolina insurance regulators took control of the four Global Bankers companies with official "domiciles," or homes, in North Carolina in 2019, after Lindberg was accused of misusing insurance company assets and of trying to bribe state officials.
A judge in a federal court in North Carolina last week sentenced Lindberg to 12 years in prison in connection with fraud and bribery charges.
The judge also issued orders calling for Lindberg to pay $1.655 billion in restitution and forfeit $200 million in assets.
Representatives for Lindberg could not immediately be reached for comment.
North Carolina officials sold a fourth North Carolina company that had been part of Global Bankers, Pavonia Life Insurance Company of Michigan, to Axar Capital Management in 2022.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.