Greg Lindberg RALEIGH– A businessman and political donor who was condemned of attempting to bribe a state authorities is now the topic of a civil action surrounding an insurer he manages. Greg Lindberg, a business owner who is affiliated with dozens of organizations through his business Eli Global, has been taken legal action against by Universal Life Insurance Business (ULICO) over a personal warranty Lindberg made to back PB Life and Annuity Company.
PB Life and ULICO were celebrations to a reinsurance contract– a typical transaction among insurance provider to spread out danger– struck in 2017. As part of the contract, according to the suit, Lindberg agreed to individual assurance the monetary plan and be on the hook if PB Life failed to satisfy its responsibilities to ULICO.
In January of 2020, ULICO alleged that PB Life was not in compliance with the reinsurance agreement due to the fact that 65% of the financial investments of the trust fund were in loan responsibilities to affiliates of PB Life which exceeded the threshold of 10% established by the insurance coverage code. ULICO demanded that PB Life deposit $524 million into an account to satisfy requirements of the reinsurance arrangement and treat the supposed breach. According to the claim, PB Life refused to make the deposit and ULICO then required that Lindberg pay up under the individual guaranty.
PB Life sued ULICO on March 16, 2020, to stop an arbitration proceeding instituted by ULICO. A federal judge ultimately allowed the arbitration to move on and the arbitration panel agreed ULICO on June 2, 2020, and ordered PB Life to deposit $524 million in an account. On June 9, ULICO made need on Lindberg under the personal guaranty.
In a July 31 action to the claim, Lindberg blamed the situation on his ongoing fight with N.C. insurance coverage commissioner Mike Causey, calling the lawsuits a “downstream effect” of damage done to his company by state regulative action. “The truth is, the properties in the ULICO reinsurance trust are very well collateralized,” stated Lindberg.
Lindberg’s declaration called N.C. Dept. of Insurance declarations about his business’ properties “lies” which some experts and companies believed the declarations. Lindberg stated the credit rating company AM Best chosen to downgrade ULICO’s credit ranking as an outcome of declarations made in a Wall Street Journal post. “ULICO then attempted to recapture $500 million of assets that are currently in a reinsurance trust with among our Bermuda insurers,” said Lindberg. “The truth is, the possessions in the ULICO reinsurance trust are extremely well collateralized.”
Lindberg released a letter on July 30, 2020, composed by Berkley Research study Group which states Lindberg’s business were damaged “in excess of $400 million” by the state agency actions to take control of the business. The letter likewise states Lindberg’s personal net worth to be “between $860 million and $1.46 billion, internet of liabilities of in between $2.6 billion and $2.7 billion including the financial obligations of the Affiliated Business.”
“There is no reason for ULICO to attempt a regain of these assets by means of lawsuits aside from AM Finest’s dependence on Causey’s false declarations,” stated Lindberg. “We totally think that when the court has a chance to examine the valuations of our properties, as BRG has actually done, this case will be decided in our favor.”
Lindberg’s attorneys, with the Greensboro office of Fox Rothschild LLP, submitted a movement Wednesday asking the court for more time to respond to ULICO’s grievance. The court granted the motion and provided Linderg up until August 21 to file his response to the lawsuit on his personal guaranty.Source: nsjonline.com