The ELNY Hardship Fund to begin notifying successful applicants
The ELNY Hardship Fund is expected to begin making awards soon, according to industry insiders. The fund administrator, the Judicial Arbitration and Mediation Service (JAMS), will be sending letters by March 17, 2014, to applicants who successfully demonstrated financial hardship due to a reduction of benefits.
The hardship fund was established by life insurance companies following the liquidation of the Executive Life Insurance Company of New York (ELNY) in August 2013. The $100 million fund was created to provide relief to 1,500 payees and beneficiaries whose benefits were decreased. Eligible ELNY payees were mailed an application and contacted in other ways by JAMS.
According to the fund guidelines,
Recipients of the following categories of ELNY annuity payments will not be eligible for awards from the fund:
- Payments that have been redirected to investors (e.g. structured settlement factoring companies) or to creditors of parties entitled to receive those payments under a structured settlement agreement. Applicants whose contracts have been partially redirected will be considered, but the amount that was redirected may impact the allocation of available funds.
- Payments that an ELNY annuity payee can expect to recover from a property and casualty insurer or other annuity owner that remains obligated under a structured settlement agreement for amounts not paid by ELNY.
The ELNY Hardship Fund website states that the fund attempted to time its payments to the liquidation but were unable to do so because of the complexity of the fund and the regulatory process.
Questions about Hardship Fund awards should be addressed to the Hardship Fund: Toll-free information line at 888-809-2254 or www.elnyhardshipfund.com.
Guaranty Association Benefits Company (GABC), a not-for-profit insurance company created as a result of the Executive Life Insurance Company of New York (ELNY) liquidation, became responsible for making payments to payees and beneficiaries as of August 2013 and began making reduced benefits payments on November 18, 2013.
GABC annuity payments can be transferred and such transfers are regulated by the applicable Structured Settlement Protection Act. If you are interested in obtaining a free no obligation quote give CBC Settlement Funding a call today at 877-386-3377. We can explain all your options including only selling a portion of your payments.