Commissioner Mike Chaney Announces Distributions To Guaranty Association in Wake of Frankel Scandal
Jackson, Mississippi –The liquidation estates of three former Mississippi-domiciled life insurance companies that were looted by Martin Frankel in the 1990’s made additional distributions in December 2014, totaling over $10,500,000.00 to the Mississippi Life & Health Insurance Guaranty Association, according to Mississippi Insurance Commissioner Mike Chaney. The Guaranty Association pays benefits for policyholders of insurance companies that become insolvent.
The reimbursements to the Guaranty Association were made possible by successful recovery efforts directed by Chaney in his role as liquidator of the three Mississippi-domiciled companies. In cooperation with other insurance commissioners, the recovery effort by Chaney has recouped over $150 million, largely from entities that allowed the scheme to occur.
The three Mississippi companies – First National Life Insurance Company of America, Family Guaranty Life Insurance Company, and Franklin Protective Life Insurance Company – along with life insurance companies domiciled in four other states, were forced into liquidation after their assets were looted under a criminal scheme masterminded by Frankel. Frankel and his co-conspirators, who stole over $200 million from these companies, were convicted of numerous crimes.
The efforts directed by Chaney have resulted in the recovery of millions of dollars to repay the Guaranty Associations for the money they have spent in protecting the thousands of policyholders affected by Frankel’s criminal activity.
“We are pleased that Mississippi’s statutory protections for policyholders worked in this case, and that we have been able to significantly offset the Guaranty Association’s losses,” Chaney said.
“Recoveries of this magnitude related to insolvent insurers are hard-earned, and we would like to thank everyone who has been involved in the recovery efforts, including those in our sister states that were also affected by Frankel’s criminal conspiracy.”