If you receive structured settlement payments from the Guaranty Association Benefits Company (GABC), your annuity originated with Executive Life Insurance Company of New York (ELNY). ELNY was a major structured settlement annuity issuer through the 1970s and 1980s, but was placed into rehabilitation in 1991 and ultimately liquidated in 2012 after years of financial deterioration tied to its junk bond investment strategy. GABC, a special-purpose, not-for-profit captive insurance company formed by state life and health insurance guaranty associations, assumed ELNY's remaining annuity obligations in August 2013.
We have dealt with GABC transfers for years and know their process well. GABC is generally cooperative on transfers, though their response times on verification letters can be slower than the larger issuers. We account for that when we set timelines with our customers.
The ELNY Story: What Happened to Your Annuity Issuer
ELNY was part of First Executive Corporation, which pursued an aggressive junk bond strategy under CEO Fred Carr. ELNY actively sold structured settlement annuities from the late 1970s through the 1980s and was rated A+ by A.M. Best.
- In April 1991, ELNY was placed into rehabilitation by the New York Superintendent of Insurance after increased surrenders caused material erosion of assets. During rehabilitation, all benefits continued to be paid in full.
- In March 1992, a Plan of Rehabilitation was approved. ELNY sold its surrenderable policies, leaving primarily non-surrenderable structured settlement annuities.
- By 2002, ELNY's cash flow went negative. By 2006, it was clear the rehabilitation plan would not succeed.
- In December 2011, over 1,500 ELNY annuitants received notices that their benefits would be severely reduced, some by more than 60%.
- On April 16, 2012, Judge John M. Galasso declared ELNY insolvent and approved the Restructuring Agreement.
- On August 8, 2013, the Restructuring Agreement closed and GABC assumed ELNY's remaining obligations.
How GABC Benefits Work
GABC is funded by three sources: state guaranty association contributions, voluntary contributions from life insurance companies, and remaining ELNY liquidation assets.
- Approximately 85% of former ELNY payees (~8,150 out of ~9,700) receive 100% of their scheduled benefits.
- Approximately 15% of payees (~1,550) experienced benefit reductions, with some seeing cuts exceeding 60%.
- Coverage limits vary by state. Most states cover at least $250,000 per annuity contract; New York covers up to $500,000 per life.
- Payees whose benefits exceeded their state's guaranty association coverage limit are the ones who experienced shortfalls.
Pacific Life Transition (Pending)
In 2024, GABC initiated a competitive bidding process with multiple life insurers. Pacific Life Insurance Company was selected to assume GABC's remaining annuity obligations through an Assumption Reinsurance Agreement.
As of early 2026, the transaction is awaiting court approval from the Nassau County Supreme Court.
Important: There will be no change in annuity benefits. Payees can expect to continue receiving the same payment amounts. Once the transfer to Pacific Life completes, future transfer requests would go through Pacific Life rather than GABC.
How to Get Your GABC Benefits Letter (Verification of Benefits)
Before a transaction can proceed, you will need a Verification of Benefits letter from GABC. This letter confirms your payment amounts, dates, frequency, and duration. Here is how to request one:
- Call GABC at (800) 421-8850
- Mail: PO Box 4366, Clinton, IA 52733-4366
- Fax: (803) 333-2417
- You will need your policy/contract number, full name, and Social Security Number
- Request a benefits verification letter confirming your payment amounts, dates, frequency, and duration
Tip: You do not need a benefits letter to get a free quote from CSF. Call us at (800) 317-3769 and we can help you gather the information we need to provide an accurate quote.
How CSF Handles GABC Transfers
CSF has a simplified process for purchasing GABC structured settlement payments:
- Free quote: call (800) 317-3769 or request a quote online
- Deal structuring: CSF reviews your payment schedule and structures the transaction
- Court filings: we handle all court filings and legal paperwork
- Transfer processing: after court approval, GABC (or Pacific Life, if the transition has completed) processes the transfer
- Lump sum payment: you receive your lump sum
Whether your benefits are at the full scheduled amount or were reduced during the restructuring, we can provide a competitive quote. If you are unsure about your current benefit amounts or what your payments are worth, call us at (800) 317-3769. We can help you figure out exactly where things stand.