North Carolina Department of Insurance Plan of Rehabilitation Faces Legal Challenge by Puerto Rico’s Largest Life Insurance Company
“Our 252,000 policyholders aren't interested in more needless litigation. They're interested in all of us putting aside our differences and doing whatever it takes to get them access to their benefits as soon as possible,” says Justin Holbrook, Global Growth CEO.
On Monday, the 10-year rehabilitation plan proposed by the North Carolina Department of Insurance faced a setback when part of it, the Interim Loan Amendment (ILA), was challenged in North Carolina state court by Puerto Rico’s largest life insurance company, Universal Life Insurance Company (ULICO). The ILA was one of three parts of the 10-year rehabilitation plan proposed by the North Carolina Department of Insurance, according to the North Carolina rehabilitators and their counsel.
Under the ILA, the North Carolina insurance companies owned by Greg Lindberg would be repaid the loans they extended to Global Growth affiliates over the course of 10 years. Justin Holbrook, Global Growth’s new CEO, recently proposed a plan to accelerate this 10-year schedule to 12 months so that policyholders can start receiving their benefits next year rather than in 2029 as the Department of Insurance originally proposed.
“Unfortunately, this new lawsuit could have easily been avoided by Mr. Causey's team if they had simply agreed to work collaboratively with all the parties needed to help policyholders now,” said Holbrook. “For three years we have told the Department of Insurance that any plan of rehabilitation must be comprehensive and include all stakeholders, including ULICO. That’s why we’ve been trying to bring the rehabilitators in North Carolina and our other stakeholders together. For some reason I can’t understand, Mr. Causey's team seems more interested in settling old scores rather than getting into the same room with all the parties, putting policyholders first, and finding workable, common-sense solutions that help policyholders today.”
“I again ask that Mr. Causey meet with me. To help policyholders, we have to move from contention to cooperation. Our 252,000 policyholders from our North Carolina insurance companies aren't interested in more needless litigation. They're interested in all of us putting aside our differences and doing whatever it takes to get them access to their benefits as soon as possible.”
The entities named in the ULICO lawsuit include the North Carolina insurance companies affiliated with Global Growth and the financial entities that invested insurance funds on policyholders’ behalf. According to Holbrook, those investments continue to perform well, protecting policyholders and their policies.
“Despite this latest lawsuit, our goal remains the same: to help policyholders gain access to their benefits in the next 12 months. They shouldn’t have to wait until 2029 just because Mr. Causey’s team refuses to cooperate with all the stakeholders, including Global Growth’s new team.”
About Global Growth
Global Growth is a global private investment firm with investments in healthcare technology, financial services, collectibles, alternative assets, and communications. Our companies operate in more than 20 countries and employ more than 7,500 people worldwide. We were founded more than 30 years ago by Greg Lindberg (www.greglindberg.com) on a simple yet contrarian idea: companies that make the world a better place are more likely to thrive. Since our founding, our investment team has focused on sustainable, long-term investment strategies that reflect our business principles. We believe in generating meaningful returns for our stakeholders, delivering innovative, customer-centric solutions, and helping our business leaders positively impact their communities.
Since June 2021, Global Growth has been led by CEO Justin Holbrook. Prior to Global Growth, Holbrook held executive and senior positions in business, academia, and the military. He has co-founded multiple technology companies, led Silicon Valley efforts to deliver life-saving technologies to the U.S. military, directed a pro bono legal clinic for disabled veterans, deployed twice as a military judge advocate in support of Operation Enduring Freedom / Operation Iraqi Freedom, and engineered software for crowd-sourced content curation. A recipient of numerous public service and academic awards, Holbrook is a graduate of Harvard Law School and Georgetown University.
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