The Colorado Bankers Life lawsuit ended with the North Carolina-domiciled insurer in court-ordered liquidation as of November 30, 2024, and its owner, Greg Lindberg, sentenced in May 2026 to 12 years in federal prison and ordered to pay more than $1.6 billion in restitution. If you held a Colorado Bankers Life (CBL) policy or annuity, your coverage did not disappear: state guaranty associations stepped in, and most covered policies are now administered by Continental General Insurance Company.
Why Colorado Bankers Life Collapsed
Greg Lindberg built CBL into the largest of more than 100 companies he controlled through Eli Global LLC and Global Bankers Insurance Group (GBIG). Starting in 2014, he moved insurers into North Carolina to take advantage of looser rules on investing policyholder funds in affiliated businesses. Under then-Commissioner Wayne Goodwin, one of Lindberg’s insurers was permitted to invest up to 40 percent of its assets in affiliates, four times the standard 10 percent cap.
Federal prosecutors said that between 2016 and 2019, Lindberg directed circular transactions that funneled more than $2 billion of insurance company funds into companies he personally controlled. He also forgave more than $125 million in loans he had taken from the insurers. North Carolina Insurance Commissioner Mike Causey later described the spending as a “lavish lifestyle” of jets, yachts, and mansions.
The Criminal Cases Against Lindberg
Two separate federal prosecutions drove the case.
The first began with a bribery sting. In 2017, Causey received a $10,000 campaign donation from Lindberg that struck him as unusual. He returned it, refused a later $110,000 offer, and contacted the FBI. From January to August 2018, Causey recorded calls and meetings with Lindberg, consultant John D. Gray, and Eli Global executive John Palermo. On the recordings, Lindberg and Gray sought the removal of Senior Deputy Commissioner Jacqueline Obusek, who had been scrutinizing GBIG’s finances. Roughly $250,000 in contributions was funneled through the North Carolina Republican Party to Causey’s campaign during the investigation. A 2020 conviction was vacated on appeal, but at retrial in May 2024 a federal jury again convicted Lindberg and Gray of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds.
The second case was the fraud prosecution. A 2023 indictment charged Lindberg with conspiracy, wire fraud, false insurance statements, and money laundering conspiracy, alleging he concealed his insurers’ true financial condition from regulators. On November 12, 2024, Lindberg pleaded guilty to the fraud and money laundering conspiracy charges and was remanded into custody.
On May 26, 2026, U.S. District Judge Max Cogburn imposed a combined 12-year prison sentence covering both the bribery conviction and the fraud plea, and ordered restitution exceeding $1.6 billion.
The $1.6 Billion Restitution Order
The restitution figure rests on a 35-page report filed in May 2026 by court-appointed special master Joseph Grier. The report identified eight possible recipients. Of the total, $821 million was designated for Colorado Bankers Life alone, reflecting $688 million in unpaid principal plus interest. Another $406 million was designated for PBLA and ULICO, two other insurance entities.
Full recovery is not guaranteed. Grier’s report indicated that identified “primary restitution assets” may total only about $1.16 billion, potentially short of the full obligation. Lindberg’s lawyers filed an emergency motion to block the sale of his assets, arguing Grier lacked authority to liquidate property before a final restitution determination, and he has filed multiple appeals related to the order. CBL alone represents obligations owed on behalf of more than 122,000 policyholders, and thousands more across Lindberg’s other insurers are owed over $1 billion in total.
From Rehabilitation to Liquidation
The North Carolina Department of Insurance placed CBL, Bankers Life Insurance Company (BLIC), Southland National Insurance Corporation, and Southland National Reinsurance Corporation into rehabilitation on June 27, 2019. In July 2019, Governor Roy Cooper signed what became known as “the Lindberg Bill,” capping affiliated investments by insurers at 10 percent of their assets.
On December 30, 2022, the Superior Court of Wake County signed an Order of Liquidation for CBL and BLIC, finding them insolvent and appointing the North Carolina Insurance Commissioner as Liquidator. GBIG Holdings appealed on January 27, 2023, blocking the order from taking effect and delaying the activation of state guaranty associations. Commissioner Causey said the appeals caused “delayed benefits” for policyholders.
A unanimous Court of Appeals panel affirmed the liquidation on March 5, 2024. GBIG then sought discretionary review from the North Carolina Supreme Court, but withdrew its own petition on July 11, 2024. The Supreme Court dismissed the petition as moot, and the liquidation took effect on November 30, 2024, nearly two years after it was signed.
What Your Policy Is Worth Now
Once the liquidation became effective, state life and health insurance guaranty associations, coordinated nationally by the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA), began covering CBL and BLIC policyholders. In most states, the coverage limits are:
- Annuity benefits up to $250,000 in present value, including cash surrender and withdrawal values
- Life insurance death benefits up to $300,000
- Life insurance cash values up to $100,000
- A combined limit of generally $300,000 across all policies from the same insurer
A few states go higher. Connecticut, New York, and Washington provide up to $500,000 across all major categories. Minnesota covers up to $410,000 for annuities under certain conditions. California uses an 80-percent-of-value formula rather than a flat dollar cap. North Carolina itself covers up to $1 million for structured settlement annuities.
Amounts above your state’s guaranty limit are not erased. They become a pro-rata claim against the liquidation estate, payable only if and when sufficient funds are recovered and only by court order.
Who Services Your Policy
Effective January 1, 2026, Continental General Insurance Company, based in Austin, assumed the guaranty associations’ covered obligations for approximately 91,000 CBL and BLIC policies, including final expense, traditional life insurance, annuity, and accident and health plans. The transaction was coordinated by NOLHGA and described as the first in a series of related transactions. Continental General handles policy administration, policyholder services, and claims for covered obligations.
You can reach Continental General about claims, benefits, address changes, or forms at:
- Mail: P.O. Box 11047, Winston-Salem, NC 27116
- Phone: 1-844-850-3718
- Email: CGIService@actmanre.com
What Is Still Frozen
A court-ordered moratorium continues to apply to all company obligations not covered by guaranty associations. That includes cash surrenders, transfers, policy loans, and interest payments on annuity accounts. No interest has been credited on annuity accounts since the liquidation date, and all claims were fixed as of November 30, 2024.
Two practical points matter for policyholders. First, keep paying premiums on life and health coverage; if the policy lapses, guaranty association protection goes with it. Second, the deadline for filing a Proof of Claim against the liquidation estate was set for November 30, 2026. Any recovery on amounts above the guaranty limits depends on that claim and on how much the receivership ultimately collects from Lindberg’s assets.