Ability of Emplouer to Rescind its Notice of Discontinuance under a GI

[Guest Edward McElroy]

An employer sent a Notice of Discontinuance without knowing that a substantial early withdrawal penalty would be associated with its action. The employer then tried to rescind its decision. The insurance company replied that the Employer was unable to rescind its decision. Are there any options available to the Employer? Thanks. Ed

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[Kirk Maldonado]

What does the contract say about this?

[GBurns]

If the effective date of the discontinuance has not yet arrived, the Notice can be rescinded. Dont let the insurer bluff you. A lot of companies are trying to reduce their GIC risk, especially since WEISS has been threatening to downgrade those with large exposure. This came critical after General American filed for protection as a result of these GICs. See the Weiss site they should still have the notices and articles up.