Colorado Bankers Life Insurance Company, domiciled in North Carolina, primarily sold annuity contracts and some life insurance. It is part of the Global Bankers Insurance Group, which is owned by Greg Lindberg. On June 27, 2019, the company was placed in rehabilitation by order of the Superior Court of Wake County, North Carolina. Lindberg was convicted of corruption and sentenced to prison for trying to bribe North Carolina Insurance Commissioner Mike Causey. The insurance regulator allowed annuity contract owners to withdraw limited funds during the COVID-19 pandemic to ease financial distress. As of August 23, 2024, the North Carolina Supreme Court granted Global Bankers Insurance Group's motion to withdraw its Petition for Discretionary Review of the Liquidation Order against Colorado Bankers Life Insurance Company, and the liquidation process will move forward as of November 30, 2024.
Characteristics | Values |
---|---|
Company Name | Colorado Bankers Life Insurance Company |
Parent Company | Global Bankers Insurance Group (GBIG) |
Ultimate Parent Company | Global Growth (formerly Eli Global) |
Ultimate Owner | Greg Lindberg |
Location | Durham, NC, United States |
Number of Employees | 50 |
Revenue | $19.41 million |
Year Started | 1974 |
Domiciliary State | North Carolina |
Rehabilitation Date | June 27, 2019 |
Liquidation Order Date | November 30, 2024 |
NAIC Number | 5-digit number assigned by the National Association of Insurance Commissioners |
What You'll Learn
- Colorado Bankers Life Insurance Company is part of the Global Bankers Insurance Group
- The company was placed in rehabilitation in 2019
- The company sold annuity contracts and some life insurance
- The North Carolina Supreme Court granted Global Bankers Insurance Group's motion to withdraw its petition
- The company's policy obligations will be covered by state life and health insurance associations
Colorado Bankers Life Insurance Company is part of the Global Bankers Insurance Group
Colorado Bankers Life Insurance Company, domiciled in North Carolina, sold annuity contracts and some life insurance. It is part of the Global Bankers Insurance Group, which, in turn, is part of the larger group of companies known as Global Growth (formerly Eli Global), owned by Greg Lindberg.
On June 27, 2019, the Superior Court of Wake County, North Carolina, placed the company in rehabilitation. Subsequently, on August 23, 2024, the North Carolina Supreme Court granted Global Bankers Insurance Group's (GBIG) motion to withdraw its Petition for Discretionary Review of the Liquidation Order against Colorado Bankers Life Insurance Company. As a result, the liquidation process will move forward, and the company's policy obligations will be covered by state life and health insurance guaranty associations.
The rehabilitation and subsequent liquidation of Colorado Bankers Life Insurance Company are connected to legal issues involving its principal owner, Greg Lindberg. Lindberg was sentenced to prison for corruption-related convictions, including trying to bribe North Carolina Insurance Commissioner Mike Causey. During the rehabilitation process, Causey served as the company's rehabilitator, overseeing its financial recovery.
As of November 30, 2024, when the Order of Liquidation becomes effective, policyholders can expect their obligations to be fulfilled by the relevant guaranty associations. This development signifies a transition for the company and ensures that policyholders' interests are protected.
Colorado Bankers Life Insurance Company, as part of the Global Bankers Insurance Group, has undergone significant changes in recent years, with the rehabilitation and liquidation processes influenced by legal proceedings involving its principal owner. The company's policies will continue to be serviced, providing continuity and assurance to its customers.
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The company was placed in rehabilitation in 2019
Colorado Bankers Life Insurance Company, domiciled in North Carolina, sold primarily annuity contracts with some life insurance. It is part of the Global Bankers Insurance Group, which in turn is part of a larger group of companies known as Global Growth (formerly known as Eli Global), owned by Greg Lindberg.
On June 27, 2019, the company was placed in rehabilitation by order of the Superior Court of Wake County, North Carolina, with the consent of the Board of Directors and the Controlling Shareholder. The Order of Rehabilitation prevented individuals from taking legal action against the company or making attachments or executions against it.
The rehabilitation order was part of a broader effort to improve the financial stability of the company, which was facing financial difficulties. The North Carolina Department of Insurance (NCDOI) imposed a common moratorium on withdrawing funds, which was eased during the COVID-19 pandemic to provide financial relief to beneficiaries and annuity contract owners.
As part of the rehabilitation process, the company's policy obligations will be covered by various state life and health insurance guaranty associations, subject to applicable statutory limits and requirements. The North Carolina Insurance Commissioner, Mike Causey, serves as the company's rehabilitator, overseeing its financial recovery.
The rehabilitation process has been ongoing, with Actuarial Management Resources beginning to service the company's business in the fourth quarter of 2021. As of August 23, 2024, the North Carolina Supreme Court granted Global Bankers Insurance Group's (GBIG's) motion to withdraw its Petition for Discretionary Review of the Liquidation Order against Colorado Bankers Life Insurance Company. As a result, the anticipated effective date of the Liquidation Order is November 30, 2024.
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The company sold annuity contracts and some life insurance
Colorado Bankers Life Insurance Company, domiciled in North Carolina, sold primarily annuity contracts with some life insurance. It is part of the Global Bankers Insurance Group, which in turn is part of a larger group of companies known as Global Growth (formerly Eli Global), owned by Greg Lindberg.
The company was placed in rehabilitation by order of the Superior Court of Wake County, North Carolina, on June 27, 2019. This was due to Lindberg's conviction for corruption, specifically for trying to bribe North Carolina Insurance Commissioner Mike Causey. As a result, Causey was tasked with overseeing the company's financial recovery.
During the COVID-19 pandemic, a moratorium on withdrawing funds from the company was modified to allow annuity contract owners to make a one-time, limited partial withdrawal of funds to ease financial distress. Annuity contract owners with an account value of less than $1,000 could withdraw the entire amount unless they opted out and chose to retain their annuity with the company. Those with an account value of $1,000 or more could withdraw 10% of the account value, up to a maximum of $15,000.
In the fourth quarter of 2021, Actuarial Management Resources began servicing the company's business. On August 23, 2024, the North Carolina Supreme Court granted Global Bankers Insurance Group's motion to withdraw its Petition for Discretionary Review of the Liquidation Order against Colorado Bankers Life Insurance Company. As a result, the liquidation process will move forward as of November 30, 2024, when the company's policy obligations will be covered by various state life and health insurance guaranty associations.
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The North Carolina Supreme Court granted Global Bankers Insurance Group's motion to withdraw its petition
The North Carolina Supreme Court's decision to grant Global Bankers Insurance Group's (GBIG) motion to withdraw its petition is the latest development in a legal saga involving life insurance companies owned by former insurance executive Greg Lindberg. The case began in 2018 when three life insurers, including Bankers Life Insurance Co and Colorado Bankers Life Insurance Co, were placed under administrative supervision due to concerns about their financial obligations.
In December 2022, a trial court ordered the liquidation of the companies, and GBIG appealed the decision. However, on August 23, 2024, the North Carolina Supreme Court allowed GBIG to withdraw its petition for discretionary review of the liquidation order. This dismissal of the appeal clears the way for the liquidation of Lindberg's insurance companies.
The liquidation process will now move forward, with the order of liquidation becoming effective on November 30, 2024. As of that date, the policy obligations of Colorado Bankers Life Insurance Co and Bankers Life Insurance Co will be covered by state life and health insurance guaranty associations, subject to applicable statutory limits and requirements. This development ensures that policyholders will receive relief and repayment through these associations.
The North Carolina Insurance Commissioner, Mike Causey, played a pivotal role in this case. He initially raised concerns about the financial stability of the companies, leading to their supervision. Later, he filed a petition to liquidate one of the insurers due to insolvency. Causey's commitment to protecting policyholders' interests has been reaffirmed, and he has expressed his dedication to ensuring they are repaid.
This ruling comes at a challenging time for Lindberg, who has faced legal setbacks in other matters, including a separate $524 million breach of contract lawsuit. The withdrawal of the petition and the subsequent liquidation order underscore the seriousness of the issues surrounding Lindberg's insurance businesses and the efforts to resolve them.
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The company's policy obligations will be covered by state life and health insurance associations
Colorado Bankers Life Insurance Company (CBLIC) is part of the Global Bankers Insurance Group (GBIG), which falls under the umbrella of Global Growth (formerly Eli Global), owned by Greg Lindberg. On June 27, 2019, CBLIC was placed in rehabilitation by order of the Superior Court of Wake County, North Carolina. This rehabilitation order was issued due to financial impairments, with Lindberg himself being convicted and imprisoned for corruption-related charges, including attempting to bribe North Carolina Insurance Commissioner Mike Causey.
As a result of the rehabilitation order, a moratorium on withdrawing funds was imposed on CBLIC to improve its financial stability. While limited hardship exemptions were initially allowed, the COVID-19 pandemic prompted a modification to the moratorium. This modification enabled annuity contract owners to perform a one-time, limited partial withdrawal of funds to provide financial relief during the pandemic. Specifically, those with an account value of less than $1,000 could withdraw their entire account value unless they chose to retain their annuity, while those with an account value of $1,000 or more could withdraw up to 10% of their account value, up to a maximum of $15,000.
Following this, on December 30, 2022, an Order of Liquidation was issued for CBLIC by Greg Lindberg's company, GBIG Holdings, LLC. This liquidation order was appealed by GBIG, but on August 23, 2024, the North Carolina Supreme Court granted GBIG's motion to withdraw its Petition for Discretionary Review of the Liquidation Order. Consequently, the anticipated effective date of the Liquidation Order is November 30, 2024, when CBLIC's policy obligations will be covered by various state life and health insurance guaranty associations, subject to applicable statutory limits and requirements.
The process of liquidation will involve the triggering of guaranty associations, which will ensure that CBLIC's policy obligations are fulfilled. These guaranty associations are designed to provide protection and continuity for policyholders, safeguarding their interests in the event of an insurance company's financial distress or failure. The state life and health insurance guaranty associations will assume the responsibility of covering CBLIC's policy obligations, providing assurance to policyholders that their rights and benefits are maintained.
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Frequently asked questions
Colorado Bankers Life Insurance Company is domiciled in North Carolina and sold primarily annuity contracts with some life insurance. It is part of the Global Bankers Insurance Group, which in turn is part of a larger group of companies known as Global Growth, owned by Greg Lindberg.
Colorado Bankers Life Insurance Company was placed in rehabilitation by order of the Superior Court of Wake County, North Carolina, on June 27, 2019. On August 23, 2024, the North Carolina Supreme Court granted Global Bankers Insurance Group's (GBIG) motion to withdraw its Petition for Discretionary Review of the Liquidation Order against Colorado Bankers Life Insurance Company (CBLIC). As a result, the liquidation process will move forward as of November 30, 2024, when the company's policy obligations will be covered by various state life and health insurance guaranty associations.
Colorado Bankers Life Insurance Company is owned by Greg Lindberg, who is currently serving a seven-year prison sentence for corruption-related convictions.