INDUSTRY NEWS

Source: Delaware.gov

Commissioner Navarro’s approval follows a November 28, 2018 public hearing.  Commissioner Navarro accepts, with certain added conditions, the findings and recommendations of former Vice Chancellor Stephen P. Lamb.  Consistent with the Delaware Administrative Procedures Act, Commissioner Navarro appointed Judge Lamb to preside at the public hearing and present him with findings of facts, conclusions of law, and a recommendation as to whether the proposed transaction meets Delaware’s legal requirements for approval.  Judge Lamb is known nationally for his distinguished career on the Chancery Court of Delaware where he scrutinized and presided over some of the nation’s largest mergers and acquisitions.

The Delaware Department of Insurance (the “Department”), which used its internal expert financial staff together with outside experts retained to scrutinize the financial, actuarial and data security aspects of this transaction, agreed to notice the public hearing after the parties recently agreed to deposit $375 million in liquid funds into GLIC.  Having these additional liquid funds invested in GLIC and available to pay policyholders was cited in the testimony of the Department witness, by Judge Lamb in his findings, and today by Commissioner Navarro as being vital to the approval of this transaction.  “I am satisfied that China Oceanwide brings immediate new value to the policyholders, and I look forward to working with them and with GLIC’s management to assure that the safety of benefits to GLICs policyholders is always considered the top priority.”

Like I said, the reason you need to make sure that you don’t do so is because the click sources longer you concentrate on getting it right, the time you’re likely to need to spend on anything else.

To that end, Commissioner Navarro’s approval includes certain additional conditions designed to assure the ongoing safety of GLIC’s policyholders.  The approval includes restrictions on the parties to assure that GLIC’s funds are used for policyholders.  They include prohibiting any dividends without the Department’s prior approval and tasking China Oceanwide and GLIC to establish teams to continuously meet and respond to Department requests focused on measures of financial health.  Commissioner Navarro acknowledged the challenges facing long term care insurers as part of his approval: “I know that no one act will fix all the challenges of long term care, but I am satisfied that this approval is a step forward, to be followed by many future steps to protect the policyholders”.