Hall optimistic after CLICO announcement

Fri, Jan 29th 2016, 07:37 PM

While Bishop Simeon Hall said he is optimistic about Prime Minister Perry Christie's announcement that the government and liquidator have come to an arrangement on CLICO, the pastor of New Covenant Baptist Church this week expressed disappointment that policy holders have yet to be provided any specifics.

In the House of Assembly on Wednesday, Christie said the government reached an agreement with the longstanding CLICO matter that will result in thousands of policyholders receiving their payouts. The policyholders have been waiting to cash in on their policies since the company went belly up in February 2009.

According to the prime minister, the liquidator proposed a plan, which would involve another entity assuming insurance operations of CLICO and paying out the policy holders. He said policyholders will soon learn when they can expect to receive their benefits.

Hall said beyond the prime minister indicating to him that there were "some complications the government had to override", policy holders have been in the dark for seven years.

"I want to hold Mr. Christie to his word," Hall said. "After seven years, how much more time do you need? It's very late, but thank God not too late."

He continued, "In the absence of information people make their own conclusions. The government could have done a better job of giving us some indication along the way. That being said, the matter seems near some resolution and gives me some optimism. I have called a meeting for this Monday so policy holders can be made abreast of the announcement."

There were approximately 13,000 Bahamian policies when CLICO was liquidated. Shortly after, then Prime Minister Hubert Ingraham advised policyholders to continue to pay on their policies. Ingraham said the government would provide a $30 million guarantee to any entity that purchased CLICO. The guarantee was intended to allow for the transfer of the CLICO (Bahamas) policy portfolio to another life and health insurer, as no other underwriter would purchase the portfolio without it.

However, Christie noted on Wednesday that the plan was not successful because of concerns with respect to the information system and the conditional nature of the guarantee. Over the years, CLICO policyholders have held several demonstrations as they agitated for government action. A general meeting is expected be held on Monday at 7 p.m. to update policy holders, according to  Hall.

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