Jun 26, 2009 News
“…if the company was going to go the route of making public the names of persons who received monies from CLICO (Guyana) then, they should publish the names of all who benefited from the money the company received from sale of its bonds in the Berbice Bridge.”
Colonial Life Insurance Company (CLICO) Guyana Director, Winston Ramalho, has taken umbrage to the fact that the Deputy Commissioner of Insurance by way of an affidavit filed in the High Court, stated that on February 26 and on March 3, surrendered policies valued over $45M.
Ramalho while admitting to surrendering the policies, challenged the company to produce any evidence that he actually received the money given that the company was placed under Judicial Management before he could.
He was adamant, also, that if the company was going to go the route of making public the names of persons who received monies from CLICO (Guyana) then, it should publish the names of all who benefited from the money the company received from sale of its bonds in the Berbice Bridge.
Ramalho said that when CL Financial began to see troubling times in January his clients started to panic and wanted to surrender their policies but he encouraged them to change their mind given that the Company’s Chief Executive Officer Geeta Singh-Knight had assured the agents of the company’s stability.
He added, too, that he had also encouraged a relative to takeout a policy to the tune of US$126,000 despite what happened in Trinidad.
Ramalho drew reference to the advertisement that was placed in the newspapers assuring policyholders of the stability of the company by Singh-Knight which according to Ramalho she said had the blessings of the then Commissioner of Insurance Maria van Beek.
The advertisement stated that “CLICO (Guyana) is a separate entity. It is a wholly owned subsidiary of CL Financial. We wish to assure our policyholders that your annuities and pensions and other insurance policies are protected and as previously published, our statutory fund remains in good standing with an adequate solvency margin….Our investment portfolio consists of short-term and long term investments which continue to yield favorable profits for the benefit of our policyholders.
“As an insurance company, we are obligated by law, through the Insurance Act, to conduct an actuarial valuation which assesses the Company’s liability to its policyholders.”
On Tuesday, Chief Justice overturned a previous decision and allowed for Clico assets to be sold. He had made such a ruling earlier but overturned it on an application by attorney Roysdale Forde.
Based on the result of the valuation, the company must prove that there are sufficient assets to meet its obligation to its policyholders. These assets, some of which must be liquid, are placed in a Trust and cannot be accessed by CLICO, unless it is approved by the Commissioner of Insurance.
In addition to the aforementioned, in the event of a wind-up, the obligation to policyholders MUST be satisfied before any other class of creditor is paid.
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