Moratorium

  • Moratorium
  • Stay
  • Contractual 
  • State
  • Courts
  • (p16) - Willis B. Howard, Jr., NOLHGA - National Organization of Life and Health Insurance Guaranty Associations:
    • I'd like to respond briefly to my honorable friend, Commissioner Bartlett.
    • Dwight, the guarantee association system works, and it works well.
  • Dwight K. Bartlett III, Maryland Insurance Commissioner:
    • Are you going to tell me, Bill, in all honesty that you really believe that the policyholders of Executive Life and Mutual Benefit Life have been well-served?
    • For example, with Mutual Benefit, if you opted out of that rehabilitation plan you get, as I recall, 55 cents on the dollar of your account value.
      • If you opt into the plan, you agreed to subject yourself to a moratorium period, which means you do not get full access to the cash values of your policy until the next century.
    • Are you going to say that's meaningful coverage for those policyholders?
    • ⇒  I think that's ridiculous.

1994 - SOA - Valuation Actuary - Symposium Proceedings - Session 1 - Introduction and Overview, Society of Actuaries - 110p

  • I question the argument that insurance organizations should have weaker bank/thrift holding company protections because their insurance policy holders can’t easily cash out if they make bad investments.

2014 0310 - Letter - Sheila C. Bair to Senator Sherrod Brown (D-OH) - 6p

  • Senate Committee on Banking, Housing and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection
  • Re: Subcommittee Hearing: “Finding the Right Capital Regulation for Insurers”
  •  
  • The very nature of insurance significantly reduces the potential of a run-on-the-bank scenario for property/casualty, health and most life insurance products.
  • For those limited products sold by insurers that could be subject to some level of run risk, mitigating factors exist such as policy loan limitations, surrender/withdrawal penalties, and additional taxes.

--  Kevin M. McCarty - NAIC Testimony - Commissioner, Florida Office of Insurance Regulation and President of the National Association of Insurance Commissioners - 8p

2012 1129 - GOV (House) - Examining the Impact of the Proposed Rules To Implement Basel III Capital Standards - [PDF-439p, VIDEO-?] 

  • The IAA notes that the exercise of any power to implement a stay on surrenders may have a cost to the reputation of the insurance industry and may result in conflicting positions between the prudential and conduct supervisors if they are separate.  (Page 180 of 264)

2018 - IAIS - Compiled Comments on Holistic Framework for
Systemic Risk in the Insurance Sector 14-Nov-18 to 30-Jan-19 - 264p