Report 2005-115.2 Recommendation 1 Responses

Report 2005-115.2: Department of Insurance: Former Executive Life Insurance Company Policyholders Have Incurred Significant Economic Losses, and Distributions of Funds Have Been Inconsistently Monitored and Reported (Release Date: January 2008)

Recommendation #1 To: Insurance, Department of

To increase assurance that Aurora follows key provisions in the ELIC agreements, the commissioner should seek the right to review Aurora?s future distributions of ELIC estate funds and review those distributions to ensure that it adds the proper amount of interest to the funds, and distributes the funds correctly.

1-Year Agency Response

The CLO sent a written request seeking the right to review future distributions to Aurora and the national guaranty organization on February 27, 2008. Although discussions with Aurora continue, Aurora has not made a commitment to fulfill the CLO?s request. There have been no subsequent distributions for the CLO to review. Future distributions, if any, are dependent on the outcome of pending litigation. (See 2010-406 p. 56)

• Response Date: January 2009

California State Auditor's Assessment of 1-Year Status: Fully Implemented

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All Recommendations in 2005-115.2

Agency responses received after June 2013 are posted verbatim.