Former Pacific Standard policyholders to share $85 million settlement
About 60,000 former policyholders of Pacific Standard Life Insurance Co. will soon receive a settlement from the California Department of Insurance.
The former Davis, Calif., insurer was declared insolvent in 1989, and the insurance department took over the company.
Insurance Commissioner Chuck Quackenbush said the $85 million settlement is good news for about 60,000 policyholders around the country, including 23,000 in California. "Our successful venture to liquidate assets would return money to Pacific Standard policyholders," he said. "Policyholders could receive anywhere from hundreds to thousands of dollars as a result of the department's diligent efforts."
Under a 1993 rehabilitation plan, Pacific Standard policyholders had the opportunity to switch to Hartford Life Insurance Co. or opt out of the deal. Policyholders who switched to Hartford Life received restructured policies. Those who opted out received a cash settlement in 1994.
Both groups are entitled to share in a liquidation trust 60 days after the trust's fourth anniversary, which was May 11, 1998.
Those former Pacific Standard policyholders who are now with Hartford Life will receive a credit to their account values with an additional contribution by Hartford Life. Those who weren't Hartford Life policyholders as of April 30, 1998, will receive a check. Checks will be mailed by July 10, 1998.
Officials said anyone who believes they are entitled to part of the settlement should call (415) 273-5726 to get more information.