Conn. regulators ask judge to reject ‘setoff rights’ for PHL Variable premium
April 16, 2025 by John Hilton
Connecticut Insurance Department regulators are due back in court this week in their ongoing effort to rehabilitate the financially troubled PHL Variable Insurance Co.
In May 2024, Insurance Commissioner Andrew Mais introduced the moratorium on benefits payments until a Connecticut court approves a rehabilitation plan for the financially troubled PHL Variable.
Since then, policyholders filed several legal challenges seeking to weaken the moratorium.
Wink’s Moore on the Market: Interesting argument…
John Hilton at InsuranceNewsNet is giving us the low down on the PHL Variable rehabilitation this morning.
The latest news? There are policyholders pursuing litigation about PHL, based on the premise that policyholders with death benefits above the $300,000 threshold (the guaranty fund limits) are being treated inequitably, relative to those that have $300,000 or less in death benefits.
What do you think? Should people with death benefits in the millions be “made whole,” or receive greater guaranty fund treatment, since many policyholders with lesser death benefits ARE made whole? -sjm
