PHL Variable Insurance Company (PHL) and its subsidiaries, Concord Re, Inc. and Palisado Re, Inc. have been placed into rehabilitation proceedings in Connecticut.
Insurance Commissioner Andrew N. Mais filed a Petition for Rehabilitation and Appointment of the Commissioner as Rehabilitator on Friday, May 17, which was granted yesterday.
The Connecticut Insurance Department (CID) filed the petition after “determining that the companies are in a hazardous financial condition and that other alternatives have been thoroughly explored.”
“Today’s filing underscores the department’s commitment to protecting consumers and ensuring the availability of a financially sound insurance industry in Connecticut,” said Commissioner Mais.
“This action is a critical first step for the department to begin developing and implementing a plan of rehabilitation that both maximizes the value of the companies’ assets and equitably administers PHL’s business for the benefit of all policy and annuity holders.”
The Superior Court also entered an order imposing a moratorium limiting payments under some policies while a rehabilitation plan is developed. The moratorium will not have any immediate effect on recurring payments and death benefits for most policy and annuity holders. Life insurance and annuity holders will receive a letter detailing any restrictions on their policies.
The Rehabilitator expects to develop a plan of rehabilitation for the companies over the next twelve months, subject to the court’s review and approval.
