Global Growth Comments on Liquidation of Greg Lindberg's North Carolina Insurers
NCDOI did not approach us before filing their liquidation motion nor explain their reasoning.
ORLANDO, Fla., Nov. 22, 2022 (GLOBE NEWSWIRE) -- In response to the North Carolina court decision to liquidate Colorado Bankers Life Insurance and Bankers Life Insurance, two Global Growth-affiliated insurance companies, Global Growth CEO Justin Holbrook issued the following statement:
"We deeply disagree with the North Carolina Department of Insurance (NCDOI) decision to liquidate these companies — and we're surprised and disappointed that things got to this point. They didn't have to.
"First, we asked the judge for a continuance so that we could engage in discovery to understand the NCDOI's sudden determination that CBL and BLI should be liquidated now. As far as we know, nothing material has changed in terms of the insurance companies' liquidity or ability to meet their current policyholder obligation under the court's prior orders. NCDOI did not approach us before filing their liquidation motion nor explain their reasoning.
"Second, our goal remains helping policyholders get full access to their benefits as quickly as possible. Liquidation simply doesn't do that. Two years or more can pass under liquidation before most policyholders receive their benefits. By contrast, the sale of the NC insurance companies now would help policyholders start receiving their full benefits in a matter of months. The NCDOI has received two signed LOIs to buy our insurance companies, and all they have to do is accept one of them — which would help policyholders now.
"Third, and most importantly, liquidation should always be a measure of last resort because it impacts state guaranty funds and threatens to leave some policyholders out in the cold. In this situation, liquidation doesn't need to happen at all, since there are other alternatives on the table. By NCDOI's own admission, there is substantial available liquidity in CBL and BLIC, and they are more than able to meet policyholder needs today. In fact, their cash position is so good that NCDOI just filed a request to relax the moratorium standards the court put in place in 2019 so more policyholders could get access to more of their benefits now. We support that decision and would even urge the NCDOI to do more.
"The bottom line is going through the long process of liquidation makes no sense when the insurance companies can be sold today. Policyholders shouldn't have to wait any longer. Today's decision hurts — not helps — policyholders get full and quick access to their benefits.
"I've spent much of my professional life in public service and learned long ago that working together is always the best way. It saddens me that Commissioner Mike Causey still refuses to do that. In the end, the court's decision today means that policyholders are still the ones paying the price for Mr. Causey's actions."
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