About GABC

History of ELNY Receivership

ELNY was placed in rehabilitation by the New York Superintendent of Insurance in 1991, and during rehabilitation its affairs were handled by the New York Liquidation Bureau (NYLB). During that period, all ELNY benefits were paid in full.

Deterioration of ELNY's financial condition made it impossible for the company to continue to meet its obligations to all payees and certificate holders, and in 2011, the New York Superintendent of Insurance petitioned the Receivership Court to enter an order of liquidation for ELNY. The Superintendent also introduced the Restructuring Plan, which outlined how benefits would be paid to ELNY payees once the company was placed in liquidation. Funds provided by the guaranty associations played a key role in the Restructuring Plan.

Beginning on March 15, 2012, the Receivership Court held an 11-day hearing on the liquidation petition and Restructuring Plan. After deliberation, the Receivership Court issued an Order of Liquidation and Memorandum Decision on April 16, 2012. The Order was appealed by 18 structured settlement annuity payees (all represented by the same attorney) on May 30, 2012. The New York Appellate Division unanimously affirmed the Receivership Court's order and the New York Supreme Court denied a motion for leave to appeal. The parties then moved forward to close the Restructuring Plan, which closed on August 8, 2013.