Guaranty Association Benefits Company (GABC), a not-for-profit captive insurance company domiciled in Washington, D.C., was created by the 40 state life and health insurance guaranty associations triggered by the liquidation of Executive Life Insurance Company of New York (ELNY) to pay out benefits to ELNY payees and certificate holders.
Guaranty associations in all 50 states as well as the District of Columbia and Puerto Rico protect policyholders by providing continuing coverage and paying claims (up to legally defined limits) for policyholders of liquidated insurance companies. The New York Receivership Court entered an order of liquidation with a finding of insolvency against ELNY on April 16, 2012, and 40 of the 52 guaranty associations were "triggered" by the Order of Liquidation to provide benefits to ELNY payees eligible for guaranty association coverage. The guaranty associations created GABC to administer the ELNY benefit payments pursuant to the Agreement of Restructuring in Connection with the Liquidation of ELNY (Restructuring Plan).
GABC does not sell insurance policies or annuities, and it does no business other than pay benefits to ELNY payees and certificate holders pursuant to the Restructuring Plan.
To learn more about state life and health insurance guaranty associations, click here.