New Information Regarding the Liquidation of London Pacific
Subject to Regulatory Approval, the effective date of Assumption of London Pacific's
Universal Life policies by Hartford Life will be July 11, 2005. All affected policyholders
should expect to receive welcome material and their Assumption Certificates from Hartford
Life no later than July 30, 2005.
London Pacific Liquidation
Due to its financial difficulties, London Pacific entered rehabilitation proceedings in
August 2002. The Receiver and his staff have concluded that London Pacific does not have
enough funds to pay claims in full and cannot be rehabilitated. As a result, on July 9,
2004 the Superior Court of Wake County, North Carolina determined London Pacific to be
insolvent and ordered its liquidation.
The Exchange Opportunity
In order to afford protection to contract owners of insolvent insurers, State Guaranty
Associations exist by statute in every state, but they do not afford full coverage in many
cases due to statutory limits and exclusions. In an effort to maximize benefits to London
Pacific Contract Owners, the Receiver and the National Organization of Life and Health
Insurance Guaranty Associations (“NOLHGA”) undertook a lengthy bid process and
then extensive negotiations with Hartford Life Insurance Company (“Hartford
Life”), the company that provided the best bid. As a result of those negotiations, an
Exchange Agreement was entered into among the Receiver, Hartford Life, NOLHGA and the
Participating Guaranty Associations. This Exchange Agreement affords to almost all of
London Pacific’s deferred annuity contract owners an opportunity to elect an exchange
of their London Pacific deferred fixed annuity contract for a Hartford Life deferred fixed
annuity contract (the “Exchange”).
The Assumption of Pay-out Annuity Contracts and Universal Life Insurance
Policies
The Exchange applies only to the deferred fixed annuity contracts of London Pacific. If
you are the owner of a London Pacific immediate or pay-out annuity contract or universal
life policy, your policy or contract will be assumed by Hartford Life with no changes to
the original terms of your policy. These assumption arrangements were approved by the
Court as part of the overall Plan of Liquidation (“Plan”) of London Pacific on
June 21, 2004 and July 9, 2004. If you have a policy or contract affected by one of
these assumptions, you will receive an assumption certificate along with a communication
package directly from Hartford Life. The immediate/pay-out contract assumption
certificate mailing began on August 9, 2004. The universal life assumption is not
expected to take place until early 2005 once certain tax issues (section 7702) are
resolved with the IRS. In the meantime, London Pacific will continue to administer
your universal life policy.
The Exchange Election Package
In conjunction with the Exchange, an Election Package is currently being mailed to over
40,000 London Pacific deferred fixed annuity contract owners. This mailing began on
August 12, 2004. The Election Packages contain detailed information on the options
available to the deferred annuity contract owners along with personal, contract specific
information regarding the effects of the various options. The contract owner’s
age at the closing date of the Exchange, currently expected to be October 12, 2004, is the
determining factor for which Election Package that contract owner will receive. Due
to certain legal restrictions in Maryland, all Maryland residents will receive a separate
Election Package. Electronic versions of the Election Packages (minus the personal,
contract specific information) can be accessed below.
Election Package for Deferred Fixed Annuity
Contract Owners Age 85 and Younger at the Closing Date (Except Maryland Residents):
Election Package for Deferred Fixed Annuity
Contract Owners Over Age 85 at the Closing Date (Except Maryland Residents):
Election Package For All
Deferred Fixed Annuity Contract Owners Residing in Maryland:
There are a very small number of deferred fixed annuity contracts which are not
eligible to participate in the Exchange. This is primarily due to certain legal
restrictions regarding residence, issue age or tax status. If your contract falls
within this excluded category, you will receive a special election package which will
detail your options under the Plan, however, you will not have the opportunity to exchange
your London Pacific contract for a Hartford Life contract.
Privacy Notice Regarding Personal Information
The Receiver of London Pacific, in response to a number of requests from former agents
for information relating to the options available to owners of London Pacific deferred
annuities under the Exchange and under the Plan of Liquidation for London Pacific, has
determined to issue the following notice of practices that will be followed in connection
with such requests:
Contractual Agreements, Documents Filed with the
Court and Approval Orders Concerning the Disposition of London Pacific's Life and Annuity
Business.
Immediate Annuities and Annuities in Contractual Pay-Out Status
Court documents along with the entire assumption agreement between London Pacific and Hartford
Life can be accessed below.
Deferred Annuities
Court documents, including the approved Plan of Liquidation, along with the
entire Exchange Agreement and other relevant documents can be accessed below. See above
for Election Package information.
Universal Life Policies
Court documents along with the entire universal life assumption agreement
between London Pacific and Hartford Life can be accessed below.
If you would like more information regarding Hartford Life Insurance Company, please
consult The Hartford's Internet address at http://www.thehartford.com.
Previously posted documents relating to the rehabilitation of
London Pacific can be accessed by clicking here.
Financial Statement filed with Wake County Superior Court
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