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Catalina Structured Funding

Selling GABC Structured Settlement Payments

If your structured settlement payments come from GABC, your annuity originated with Executive Life Insurance Company of New York (ELNY). On July 1, 2026, Pacific Life assumed GABC's remaining annuity obligations, so your payments now come from Pacific Life. These annuities have a complicated history, but selling your payments works the same as any other issuer. Here is what you need to know.

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. In 2024, GABC ran a competitive bidding process, and on July 1, 2026, Pacific Life Insurance Company assumed those obligations under a court-approved assumption reinsurance agreement. If you receive these payments, Pacific Life now administers your annuity.

We have handled transfers out of the former ELNY portfolio for years and know the process well. Verification letters on these annuities have historically moved slower than the larger issuers, and we build that into the timelines we set with our customers. With Pacific Life now administering the portfolio, transfer requests route through Pacific Life, and we coordinate that for you.

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 Assumed GABC's Annuities on July 1, 2026

The Pacific Life transition is complete. In 2024, GABC ran a competitive bidding process with multiple life insurers and selected Pacific Life Insurance Company to assume its remaining annuity obligations through an assumption reinsurance agreement. Here is how it played out.

  • December 10, 2025: GABC filed its request for approval with the Nassau County court that oversees the ELNY liquidation.
  • April 20, 2026: The court approved the assumption reinsurance agreement.
  • July 1, 2026: The sale closed. Pacific Life assumed all of GABC's remaining annuity obligations.

Your benefits did not change. Payment amounts, dates, frequency, and duration stay exactly as scheduled, and payments continue without interruption. The only real change is the name behind the annuity. Pacific Life now administers what GABC administered before, using the same contact information.

At tax time, expect two 1099s for 2026. GABC issues one for payments made from January 1 through June 30, 2026. Pacific Life issues one for payments made from July 1 through December 31, 2026. If you have questions about how your payments are reported, check with a tax advisor.

For selling your payments, little changes. Transfer requests now go through Pacific Life rather than GABC, and CSF handles that coordination for you. For a plain-English rundown of the sale and what it means for payees, see our explainer on the GABC sale to Pacific Life. You can read the court filings and orders on GABC's website, and Pacific Life's company information is at pacificlife.com.

How to Get Your GABC Benefits Letter (Verification of Benefits)

Before a transaction can proceed, you will need a Verification of Benefits letter. This letter confirms your payment amounts, dates, frequency, and duration. Pacific Life now issues these letters for the former GABC and ELNY annuities, using the same contact information GABC used. Here is how to request one:

  • Call Pacific Life 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:

  1. Free quote: call (800) 317-3769 or request a quote online
  2. Deal structuring: CSF reviews your payment schedule and structures the transaction
  3. Court filings: we handle all court filings and legal paperwork
  4. Transfer processing: after court approval, Pacific Life processes the transfer
  5. 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.

If you are weighing offers from multiple buyers on your GABC payments, we encourage the comparison. Our structured settlement company comparison page covers BBB ratings, funding speed, transparency on the discount rate, and which buyers are direct funders versus brokers.

Frequently Asked Questions

What is GABC?
GABC (Guaranty Association Benefits Company) is a special-purpose, not-for-profit captive insurance company formed by state life and health insurance guaranty associations to pay benefits to former ELNY (Executive Life Insurance Company of New York) policyholders. GABC assumed ELNY's remaining annuity obligations in August 2013 following ELNY's insolvency and liquidation.
What happened to Executive Life of New York?
ELNY was placed into rehabilitation by the New York Superintendent of Insurance in April 1991 after its aggressive junk bond investment strategy led to material asset erosion. After years of declining cash flow and a failed rehabilitation plan, ELNY was declared insolvent in April 2012. Its remaining obligations were assumed by GABC in August 2013 under a court-approved Restructuring Agreement.
Can I sell my GABC structured settlement payments?
Yes, GABC structured settlement payments can be sold through the standard court-approved transfer process. Every state has a Structured Settlement Protection Act (SSPA) that allows you to transfer your payments after receiving court approval. CSF has extensive experience purchasing payments from the former ELNY portfolio. Since Pacific Life assumed these annuities on July 1, 2026, transfers are processed through Pacific Life, and CSF handles that coordination for you.
Were my benefits reduced?
Approximately 85% of former ELNY payees receive their full scheduled benefits. About 15% experienced reductions (some exceeding 60%) depending on whether their benefits exceeded their state's guaranty association coverage limit. If you are unsure, contact Pacific Life at (800) 421-8850 to confirm your current benefit amounts.
Did Pacific Life take over GABC annuities?
Yes. On July 1, 2026, Pacific Life Insurance Company assumed all of GABC's remaining annuity obligations through an assumption reinsurance agreement. The Nassau County court that oversees the ELNY liquidation approved the agreement on April 20, 2026. Your benefits did not change. Payment amounts, dates, and frequency stay the same, and the same phone number and address now reach Pacific Life.
Who issues my 1099 for 2026?
You will receive two 1099s for the 2026 tax year. GABC issues a 1099 for benefit payments made between January 1 and June 30, 2026. Pacific Life issues a 1099 for payments made between July 1 and December 31, 2026. Two forms are a normal result of the mid-year transition. If you have questions about how your payments are reported, check with a tax advisor.
How do I contact GABC or Pacific Life?
Pacific Life now administers the former GABC and ELNY annuities, using the same contact information GABC used. Call (800) 421-8850 or write to PO Box 4366, Clinton, IA 52733-4366. You can also fax documents to (803) 333-2417. Have your policy or contract number, full name, and Social Security Number ready when you call.
Can I sell life contingent GABC payments?
Yes, CSF specializes in purchasing life contingent payments that many other companies won't touch. Life contingent payments carry actuarial risk because they stop when the measuring life passes away, but CSF has the underwriting expertise and funding partners to purchase these payments at competitive rates.

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