Connecticut’s insurance regulator will hold a virtual information session later this month for holders of PHL Variable Insurance Co. policies and annuities, offering updates on a rehabilitation proceeding that has stretched on for years and left thousands of policyholders in limbo.
The Connecticut Insurance Department announced the one-hour session for April 13 at 10:30 a.m. Policyholders can submit questions in advance by emailing PHLForumQuestions@ct.gov through 5 p.m. on April 9. A recording will be posted afterward on the department’s website.
The session will be available here.
“This has been a difficult and uncertain time for many policyholders,” Commissioner Josh Hershman said in a statement. “We are committed to providing clear, timely information and helping policyholders understand what this process means for them and what to expect at each step.”
PHL, a Hartford-based life insurer, has been under state supervision as part of a court-supervised rehabilitation aimed at stabilizing the company and protecting policyholders. The proceeding, overseen by the insurance commissioner as rehabilitator, has drawn intervention from policyholders seeking a greater voice in decisions about their contracts.
The effort to rehabilitate the company has more recently shifted toward the prospect of liquidation, a turn that has heightened anxieties among policyholders.
The stakes are especially high for policyholders whose contract values exceed the state guaranty fund’s coverage caps — $250,000 in present value for annuities and $300,000 in death benefits for life insurance policies.
In a liquidation, holding contracts worth more than the limits would become unsecured creditors for the over-the-cap amount, potentially leaving them able to recover only a fraction of what they’re owed.
The session comes as policyholders have pressed for more transparency about the proceeding’s trajectory and what guaranty fund protections, if any, might apply to their contracts.
More information is available at the department’s PHL webpage here.
