by John Darer® CLU ChFC MSSC RSP CLTC
Why did some ELNY victims put all their eggs in one basket, when the old adage is “Don’t put all your eggs in one basket”? A few comments I’ve learned of include:
” The Defense Forced it on Me” is a theory that some have used in conjunction with the ELNY situation
I recently chatted with a life insurance executive who, back in 1985, was a structured settlement broker brought in by the excess and surplus division of a major insurer to handle a big catastrophic personal injury case. He shared how his firm intentionally steered clear of Executive Life, warning clients not to place business there. At the time, both Executive Life Insurance Company and ELNY were thriving, encouraged by people—like a certain judge with the infamous “there’s a better chance of the sun not shining…” quip—who ignored obvious warning signs.
Plaintiff Lawyer Persisted on ELNY Selection
Accused Insurance company of denying “full market access”
On the occasion in question, the former broker stated to me that it in fact it was the plaintiff lawyer who insisted on Executive Life.
The broker’s client refused to do business with Executive Life
But the plaintiff attorney persisted and accused the insurance company of not giving his client “full market access”, despite all the overt warning signs in the New York Times since November 1983, Wall Street Journal and other mainstream and regional newspapers, CBS Prime Time news about the failures of similar junk bond laden companies such as Baldwin United, Charter companies and on TV Think pre-internet 1980s!
At that point the defense broker explained “qualified assignment” to the insurer, which was then a new concept. The insurer subsequently agreed to the plaintiff’s demand to use Executive Life on the condition it be done as a qualified assignment with a very stiff hold harmless agreement.
360 Degree View of ELNY story
I believe it is important to obtain and publish all sides of the ELNY story so that there is an accurate historical portrayal of what happened and learn from it. It is becoming increasingly clear that the blame can be shared.
You may also be interested in watching
Lessons from Executive Life of New York-ELNY Why Were All Their Eggs in One Basket?
and Reading
Beef Yerkes | ELNY Era Legal Malpractice Case Continues Against Anapol Weiss – Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews May 1, 2022
Read more about Qualified Assignments, along with a video
What is a Qualified Assignment? (4structures.com)
Last updated May 12, 2024
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