After a long time in rehabilitation with a moratorium in place, Colorado Bankers Life Insurance Company will be placed in liquidation effective 11-30-2024.
Until the effective date of the liquidation, all claims and premiums are submitted to the receiver. These claims will be paid under the rehabilitation court’s approved moratorium and hardship orders.
After 11/30/2024, all policy/contract administration and claim payments will transition to the guaranty associations, like the Wisconsin Insurance Security Fund (WISF), under our coverage continuation responsibilities based on the residency qualification of the policy/contract holder. The guaranty associations will be continuing administration with AMR that is servicing the policies/contracts now for the receiver.
Affected policy or contract holders should have or will shortly receive two communications.
One from the receiver providing the formal legal notice of liquidation.
A second from the guaranty system indicating that liquidation (11/30/2024) will trigger coverage providing for a continuation of annuity, life, and disability policies/contracts in-force on the liquidation date. It will indicate that more information will follow on administration and for annuities surrender options.
WISF is already working with other guaranty associations to finalize the administration and determine the covered portion of policies and contracts.
At this point, WISF expects to have annuity surrender notice letters out to Wisconsin residents covered before 11/30/2024 with specific information on coverage and the surrender/exchange process. Surrenders/exchanges will be processed starting Monday, December 2 in the order the completed documents are received. We expect first payment to be mail the week of December 16th.
Subject to the limitation on coverage under Chapter 646, of the Wisconsin statutes, WISF will fund surrender payments and claims immediately after liquidation. Subject to policy or contract limits, WISF provides each person in an insolvency up to $300,000 of coverage for payments made after liquidation regardless of the number of life, annuity, or disability policies/contracts. Coverage is subject to the application of the interest rate limit in Chapter 646.
For information contact the WISF at 608-242-9473 or go its website https://www.wilifega.org/.