North Carolina Insurance Commissioner Mike Causey today hailed a unanimous Court of Appeals opinion affirming the liquidation of Greg Lindberg’s former insurance companies, saying that the decision could lead to policyholders finally gaining access to their money.
“Today’s well-reasoned decision by the North Carolina Court of Appeals is another critical step in support of my goal of getting policyholders repaid,” Commissioner Causey said. “As it stands today, the liquidation order will become effective June 30, 2024. On that date, the various state guaranty associations will begin the process of paying policyholder claims.
“Of course, Mr. Lindberg can try to push that date back by continuing to pursue meritless appeals. My sincere hope is that he does not, and finally ends this nightmare that he created for policyholders. In the meantime, I will continue to fight for the policyholders to ensure they get all they are owed, and thank the court for this important decision.”
The three-judge Court of Appeals panel, made up of Judges Julee Flood, John Arrowood and Toby Hampson, upheld a Dec. 30, 2022, ruling by Wake County Superior Court Judge A. Graham Shirley II that declared two of Lindberg’s former companies, Bankers Life Insurance Company, and Colorado Bankers Life Insurance Company, insolvent and ordered their liquidation.
Tuesday’s ruling will allow various state life and health insurance guaranty associations to begin paying claims to policyholders later this year, provided there are no further delays caused by appeals. Many state life and health insurance guaranty associations provide coverage up to $300,000 for life insurance death benefits, $100,000 for life insurance policy net cash values and $250,00 in the present value of annuity benefits. Some state life and health insurance guaranty associations are authorized to provide different levels of protection.