Guggenheim Sub in Standard Life of Indiana Deal

Standard Life, which has no connection with Standard Insurance Company or other units of StanCorp Financial Group Inc., Portland, Ore., suffered severe losses on investments in subprime debt and securities issued by Lehman Brothers Holdings Inc., New York, and Washington Mutual Inc., Seattle, Indiana Insurance Department officials say.

Capital Assurance Corp., Prospect, Ky., became the parent of Standard Life in 2005 and added $18 million in capital to the company, but it could not provide additional capital, the company said in late 2008.

Standard Life now has about 34,000 policyholders. In 2007, the year before the recent financial crisis hit, Standard Life generated about $30 million in individual annuity premium revenue on $2 billion in admitted assets.

Randolph Lamberjack, president of Noble Consulting Services Inc., Indianapolis, has been the special deputy in charge of the rehabilitation of Standard Life.

POLICYHOLDERS

Indiana officials say that, for now, Standard Life policyholders will continue to operate under court-approved procedures.

The procedures include:

• A moratorium on loan and cash surrender rights for Standard Life policies.
• Hardship withdrawals and income payments in accordance with court-approved procedures.
• Payment of all death claims in full.
• Ability to access earned interest, where available.
• Maturities honored based on contract provisions.
• Annual 10% withdrawals available without penalty on contracts providing for such withdrawals.