Colorado Bankers (CB Life)...

[Allen Trent]

From the rehabilitator monthly report:

Civil Litigation Update

The Special Deputy Receivers filed on June 23, 2023, an action in The United States District Court for the Eastern District of North Carolina, Western Division, captioned Southland National Insurance Corporation, in Liquidation, et al v. Greg E. Lindberg, et al, Case No. 5:23-CV-340 (E.D.N.C.), seeking damages in an amount over $1,000,000,000, plus punitive damages, on behalf of Southland National Insurance Corporation in Liquidation, Colorado Bankers Life Insurance Company in Rehabilitation, Bankers Life Insurance Company in Rehabilitation, and their policyholders and creditors. Through this lawsuit, the North Carolina insurance companies seek substantial money damages from those who wrongfully used policyholder money for their own gain.

I think this is saying that the Southland insurance company & its creditors & it's policy holders are suing Lindberg. Anything recovered (unlikely) would go to Southland insurance, not to Colorado Bankers or it's policy holders. I am not a lawyer, but that is how I read that

 

[ccwpc]

I think this is saying that the Southland insurance company & its creditors & it's policy holders are suing Lindberg. Anything recovered (unlikely) would go to Southland insurance, not to Colorado Bankers or it's policy holders. I am not a lawyer, but that is how I read that

No, i don't think so. It says they're sueing on behalf of Colorado bankers and the others listed.

 

[Allen Trent]

No, i don't think so. It says they're sueing on behalf of Colorado bankers and the others listed.

I hope you are correct & it sure looks like you are after I reread it.

Hope they win & can recover something & it isn't all eaten up by the law firm, the administrator & creditors.

Seems like carriers that had to pay to guaranty association could be considered a creditor in this lawsuit too

 

[ccwpc]

I hope you are correct & it sure looks like you are after I reread it.

Hope they win & can recover something & it isn't all eaten up by the law firm, the administrator & creditors.

Seems like carriers that had to pay to guaranty association could be considered a creditor in this lawsuit too

I hope so too.

Where do you deduce that the carriers that have to pay the SGA can be considered a creditor?

 

[scagnt83]

No, i don't think so. It says they're sueing on behalf of Colorado bankers and the others listed.

They are suing on behalf of all those insurers.

But the Reinsurer (southland national) does not owe Policy Holders money.

That means that Southlands portion of that $1B, goes to Southland.

They were victims in this just like the Policy Holders.

 

[Allen Trent]

I hope so too.

Where do you deduce that the carriers that have to pay the SGA can be considered a creditor?

Not saying they do. I am just saying if I was a carrier billed for $50m because of a failed company that had no assets & then that failed company recovers assets stolen, you would think those carriers that basically loaned the system the money to pay consumers would recover a portion of what they had to pay out even though they were never a party to any of it

These are so rare in general, let alone more rare that money is recovered later, that there is almost no where to research how all the various things play out

 

[ccwpc]

Not saying they do. I am just saying if I was a carrier billed for $50m because of a failed company that had no assets & then that failed company recovers assets stolen, you would think those carriers that basically loaned the system the money to pay consumers would recover a portion of what they had to pay out even though they were never a party to any of it

These are so rare in general, let alone more rare that money is recovered later, that there is almost no where to research how all the various things play out

I don't think the insurance companies can be considered creditors. At least that's what i think from reading how SGAs operate.

 

[rats0001]

Case in point Executive Life, went into liquidation in 1991. I got my last payment in 2017 or 2019, too lazy to look it up. There were many lawsuits and payments made, but I don't know if the SGA's got any of it back.
I could not even figure out if I came out whole. There were opt in, and opt out classes. I had single pay life policies where I borrowed 90% of the value before there were problems. I never paid back any of the loans or interest, was an opt in because I never made a choice and got several payments over the years.
The policies were not large, so I'm sure itwas below any SGA limit.
CBL policies above the SGA limit will probably have to wait a long time to get any payments from the estate. lindberg like to appeal every loss in court.
Further research can be found here

Conservation and Liquidation Office

www.caclo.org

 

[ccwpc]

Case in point Executive Life, went into liquidation in 1991. I got my last payment in 2017 or 2019, too lazy to look it up. There were many lawsuits and payments made, but I don't know if the SGA's got any of it back.
I could not even figure out if I came out whole. There were opt in, and opt out classes. I had single pay life policies where I borrowed 90% of the value before there were problems. I never paid back any of the loans or interest, was an opt in because I never made a choice and got several payments over the years.
The policies were not large, so I'm sure itwas below any SGA limit.
CBL policies above the SGA limit will probably have to wait a long time to get any payments from the estate. lindberg like to appeal every loss in court.
Further research can be found here

Conservation and Liquidation Office

www.caclo.org

I can see it taking many years. I wonder if he can appeal while he's in prison.