$12.4 mil. for CLICO payouts
Making good on its pledge to honor the financial commitments made to CLICO policyholders, the Minnis administration has budgeted $12.4 million for distressed policyholders in the upcoming fiscal year.
In 2017/2018, the government allocated $10 million for CLICO payouts.
According to the 2017/2018 budget, the government planned to commit $10 million for CLICO payouts in 2018/2019 and a further $10 million for the same in 2019/2020, but both allocations for these fiscal periods have been increased.
According to the 2018/2019 budget, the government will commit another $12.4 million for CLICO payouts in 2019/2020, and a further $12.4 million in 2020/2021.
CLICO (Bahamas) went through a court-ordered liquidation in 2009.
The final payout of approximately $38 million was originally expected to be made last January.
As of December 2016, liquidators Leno Corporate Services, and other professionals, were completing a business plan and funding structure that would ultimately be approved by the Insurance Commission of The Bahamas and the Supreme Court, according to the former government.
It was reported in April that BAF Financial Group of Companies could receive 4,000 to 5,000 CLICO (Bahamas) life insurance policies, but only after the liquidator has closed down all of the failed former insurer’s medical insurance policies.
BAF Managing Director Sandy Morley said his company could be responsible for managing CLICO policies possibly by the end of May, after formalizing and finalizing the process with the liquidator, who currently holds the portfolios.
Morley said BAF would only be handling accounts that were kept current and continued to pay premiums for the past nine years, and not those that had lapsed under the liquidator.
He said those active accounts still number in the thousands.
Morley said the medical cancellations are being done by the liquidator prior to BAF receiving and managing the life insurance portfolio.
He said the liquidator will advise on the effective date that BAF receives the book of business.
Last April, the former government announced proposed payments for April, July and November 2017. The first payout took place from March 1 to June 30, 2016.
This encompassed approximately 3,389 issued checks, totaling over $11 million. Around 300 policyholders were left out of the first payout.