COLORADO BANKERS LIFE INSURANCE COMPANY (“The Company”)
LIQUIDATION PETITION FREQUENTLY ASKED QUESTIONS
Q. What is the status of the Colorado Bankers rehabilitation?
The company is still in rehabilitation at this time. However, on November 1, 2022, Commissioner of
Insurance Mike Causey filed a petition to place Colorado Bankers into liquidation.
Q. When will the Colorado Bankers liquidation order be entered?
Currently there is not a timeframe as to whether or when the Court will approve the liquidation petition
and issue a final order of liquidation. When that will happen depends on when the Court schedules a
hearing and then enters its order. Colorado Bankers will be asking for those things to happen as soon as
possible.
Q. What happens once the liquidation order is entered?
Once a final order of liquidation becomes effective, Colorado Bankers’ policy obligations will be assumed
by various state guaranty associations up to their state coverage limits. In other words, your state
guaranty association would pay you up to the limits set by state law for the type of policy. More
information about the state guaranty associations will be posted on the Colorado Bankers website, or you
can go to the NOLHGA website: www.nolhga.com
Q. How does liquidation benefit policyholders?
Liquidation will allow more policyholders to have access to more of their funds, sooner, through payments
made by state guaranty associations. State guaranty associations pay the beneficiaries of insolvent
insurance companies up to limits that vary by state and type of policy.
Q. When will I receive my money?
Once a liquidation order with a declaration of insolvency would become final, claims or withdrawals
covered by the guaranty associations will be paid on a schedule to be determined by them. This process
could be greatly expedited if Mr. Lindberg consents to Bankers Life being placed into liquidation. Until
then, the Rehabilitator will continue paying hardship payments in addition to the payment programs
described below, when the Court approves them.
Q. How do I know how much my state guaranty association will pay on my policy?
Like the FDIC for deposit insurance, state guaranty associations have maximum benefit levels for different
types of insurance policies. State law sets these amounts. You should check with your state guaranty
association’s website to see how much is covered for your type of policy. You can find your state
association here: https://www.nolhga.com/policyholderinfo/main.cfm
Q. Can I withdraw my funds?
Until a final order of liquidation becomes effective, the rehabilitation moratorium on withdrawals remains
in place. The Rehabilitator will continue to accept hardship applications and process them in accordance
with the hardship policy. The Rehabilitator is also seeking the Court’s permission to get more funds to
policyholders sooner, like additional petitions to make interest-only payments and partial withdrawals.
Q. What else is the Rehabilitator doing to get policyholders their funds as soon as possible?
While the Court is reviewing the liquidation petition, the Rehabilitator will be filing a separate petition
with the Court seeking approval to pay contractual interest-only payments on policies as of November 1,
2022, and going forward. There will be no retroactive interest accumulated prior to November 1, 2022,
paid at this time. The Rehabilitator will also file an additional petition with the Court seeking approval to
allow a limited partial withdrawal distribution to policyholders. More information about these programs
will be posted about these petitions after they are filed.
Q. How do the lawsuits against Greg Lindberg and his companies affect me and my ability to get paid?
The lawsuits do not affect state guaranty association coverage. Nothing will happen to those funds
regardless of the outcome of the litigation against Mr. Lindberg. The state guaranty associations will pay
policyholders up to state coverage limits after a final order of liquidation becomes effective. Colorado
Bankers will continue fighting Mr. Lindberg and his companies to pay all of the funds they owe so that the
company also can pay back policyholders who have policy amounts that are higher than the guaranty
association limits (“excess policyholders”). Mr. Lindberg and his companies could choose to pay back
Colorado Bankers at any time, making those funds available for excess policyholders.
Q. Should I continue to pay my policy premiums?
It is very important that policyholders continue to pay their life and health premiums. Failure to pay policy
premiums due under your policy, in full and on time, may cause your policy to terminate, and you will lose
your benefits, including guaranty association coverage. We are still not accepting annuity premiums.
Q. Are claims currently being paid?
Yes, life and health claims are currently being processed as they are received. Policyholders are
encouraged to go the Colorado Bankers website to review updated information on all these developments
at: www.cblife.com
