I'm not familiar with a second layer. Most states only have one fund ..and some of those are broke. Maybe a good class action suit against all of the insurance brokers who sold it is in order..their E&O can be the second layer.
Their is a second layer that moves in above the guranatee fund...but here's the real issue, IMO....KFS is attempting to shield its remaining assets from Lincoln....The state of PA will not advance Lincoln into receivership and allow KFS leadership off the hook....it is unfortunate that Lincoln claims will in all likelihood experience adverse case development...
I disagree entirely. KFS appears to have gone by the book - nobody took control of the entity and approval is not needed on a disposal. Think of how onerous the law would be if approvals were needed on disposals. Plus, if the state wants to protect the policy holders it is in their best interest to NOT see KFS fail. The state's complaint is classic populist 'go after the big bad corporation' stuff, which I generally support, but in this case amounts to nothing more than propaganda and grandstanding. Not saying KFS is the best investment idea in the world, but at this level it is pure option value with big upside (book is $4-$5). Would hold on and see what happens.
So??? They fired everyone except executives. Now it's time to fire them as well. KFS is done. Take a look at the document, talk with laywer. They will lose in court for sure. It they don't halt trade on Monday, sell like no tomorrow