$75M Life Insurance Deal Zapped After Bankruptcy

Law360, New York (August 14, 2006, 12:00 AM EDT) -- Conseco Inc., a once-highflying financial services company, prevailed Friday in its fight to avoid paying millions of dollars to cash out an unusual life insurance agreement for the former executive accused of driving the firm into the ground.

With the ruling, the U.S. Court of Appeals for Seventh Circuit affirmed a lower court decision that Conseco’s obligations to the $75 million insurance deal were terminated when the company filed for Chapter 11 bankruptcy protection in 2002.

The decision affirmed a ruling from the U.S. District Court...
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