Just because Executive Life Insurance Co. of California has been placed in conservatorship doesn't mean the company is insolvent or that it will be liquidated, according to Utah Insurance Commissioner Harold C. Yancey.
He said California Insurance Commissioner John Garamandi has taken the action, which means his department will supervise operation of the company and be heavily involved in decisions regarding the company's future.Yancey said the conservatorship action means there is an immediate moratorium on policy surrenders and loans, but his department hasn't determined whether or not death claims and monthly annuity payments will be made. He wants Utah policyholders to understand what conservatorship means.
Executive Life officials have been negotiating with a consortium of European companies and investors toward the sale of major assets. If the negotiations are successful, it will enhance the security of policyholders and annuitants, Yancey said.
Executive Life is a member of the Utah Life and Disability Insurance Guaranty Association, which can provide limited protection if the company is placed under an order of liquidation. Yancey is attempting to gather more information about the company's status.