Colorado Bankers (CB Life)...

[Allen Trent]

I may be wrong but technically and officially, CBL isn't in a liquidated status right now when the 25% is being distributed so it shouldn't count towards the SGA limit. Thoughts?

I hope you are right. Here is why I tend to think previous distributions come into play.

Client A- $1M deposited in 2010 & took 10% free WD/RMDs of approximately $80k every year

Client B- $300k deposited in 2015 & it has now grown to $370k

If their carrier is liquidated in 2023 & the state guaranty is $250k, Client A would have already gotten out over $1M in withdrawals & still be able to get up to $250k of value for a total of $1.25M from the $1M deposited. Client B would only get $250k of their current value of $370k of which they deposited $300k initially.

Again, I may be completely wrong & hope I am, but I always understood the guaranty association to guarantee that you "received" up to the state limit, not that you will receive the state limit plus all previous money you had taken out.

 

[Newby]

So yay, some of us received 25% of our funds back. My question is, for those of us excess policyholders: if/when the CBL goes into liquidation and the state guaranty associations are activated to pay us up to their caps, will the 25% be deducted out of the amount they pay us, and they will therefore only pay us 75% of the amount? i.e. someone has an annuity for $800,000. Now they receive 25% of their funds back, $200,000. They are still owed $600,000. In a liquidation scenario, if the state guaranty association’s cap is $500,000, would the customer (victim) be paid $500,000? Or would they be paid $500,000- $125,000 (25%)= $375,000?

Yes. They are not going to pay more than the limit and that counts everything you already got. They just have to make up the shortfall up to the limit.

 

[Jrbeccles]

The burning question is “when” does the liquidation go into affect? The monthly Rehab newsletter never discusses the status of the appeal and where it is in the courts. It’s been around 9 months now since Lindbergh’s lawyers filed the appeal aka hold of the liquidation process- how much longer does it take? How do we find out what’s going on?

 

[kimmykoko]

hello i'm new and my parents got that letter a couple weeks ago. just wondering
how i can help them out and get them at 25% of their money back. i feel so bad for them trusting this guy to invest their money. they worked so hard.

should they fill out a victim impact statement?

any help would be greatly appreciated. I can't believe they just found out about this guy.
they live in pa. if that helps...ugh

 

[Jrbeccles]

Kimmykoko. Your parents should have gotten a letter stating how to get the 25% out of their account. I have no idea of your situation but I can tell you that in my opinion complete the form asap and get the 25%. You need to do this I believe before the end of October. At least they will have that amount back. Heaven only knows how long it will be until the liquidation goes through. Could be 6 months or 6 years. It’s fairly easy to complete the form to get the 25% back.

 

[Dan T]

After FOUR YEARS of fighting to get our money back, we finally received a check for 25% of what CB owes us this week. Better than nothing, I guess....
But how long 'til we receive the balance?


Im curious how long did it take to receive check after filing…
Well its been 15 days…. Still nothing
called kroll
they said be patient…takes at least 3 weeks

 

[Dan T]

 

[ACDC]

That is not good news since the liquidation appeal is pending on his bribery charges. This Lindberg guy is determine to not pay the policy holders as long as he can. Maybe if we put him in jail instead of house arrest, we might see things move along faster.

 

[Phyllis Christos]

I did not fully understand that the liquidation appeal is "pending on his bribery charges". Where did you learn that?
That at least gives us a solid time frame.....which is helpful....
It's more than I had before reading your post...so thanks...
Pat Costello at the Massachusetts Secretary of State's office indicates they should have some news by next week.......regarding the Citizens investigation...
Fingers crossed it's more than a slap on the hand...

 

[ACDC]

Have anyone seen the latest quarterly report, CBL life is now in receivership as opposed to rehabilitation. Receivers will investigate, collect and convert all company assets into cash which, I believe, means this is a next step to a liquidate payout and turning this over to the state for a final payoff of some sort.