Troubled Companies

1994 04 - CBO - The Economic Impact of a Solvency Crisis in the Insurance Industry - 80p

  • Many troubled companies have become so because management has not been structured to recognize and address the problems that can arise in the insurance industry.

2004 - NAIC - Market Conduct Examiners Handbook - 1582p

  • An increase in the number or type of complaints filed by policyholders, claimants, employees, agents or third parties which could indicate liquidity or internal control problems (consumer affairs).  (p8)

1998 - NAIC - Financial Analysis Handbook - 349p

  • The Financial Analysis Handbook (the Handbook) was developed under the direction of the NAIC Financial Analysis Handbook Working Group.
  • 2004 - NAIC - Communication and Coordination Among Regulators, Receivers, and Guaranty Associations: An Approach to a National State
    Based System, Receivership And Insolvency (E) Task Force - 20
  • 2009 - NAIC - Alternative Mechanisms for Troubled Insurance Companies, NAIC Restructuring Mechanisms for Troubled Companies Subgroup of the Financial Condition (E) Committee - 64p
  • 2005 0419 - NAIC / FRB - Report of the NAIC and the Federal Reserve System Joint Troubled Company Subgroup: a comparison of the insurance and banking regulatory frameworks for identifying and supervising companies in weakened financial condition - 44p
  • NAIC - Troubled Insurance Company Handbook
  • NAIC - Troubled Company Working Group of the Examination Oversight (EX4) Task Force
    • 1990-2, NAIC Proceedings
      • Chair - Norman Koefoed, Chair (Ill);
      • (p ) - The Chair notified the task force that a Non-Investment Bonds Working Group had been appointed to review companies with large holdings in non-investment grade bonds.
        • The group had met three times since being organized.
        • The initial concern has been with Executive Life Insurance Company of California.
        • The group has received reports from both an independent actuarial firm and the company and is monitoring the situation.
        • The chair advised that no precipitous action should be necessary against the company.
        • In addition, the group has provided the California Department with a list of recommendations regarding needed information from the company.
        • The chair stated that information provided to the group indicates the company to be in a very liquid position, with surrenders declining as compared to January and February of this year.
        • Mr. Montgomery stated that the Actuarial Valuation Report from Milliman and Robertson should be completed by week end and copies would be available to states from the actuarial firm. 
  • [Business of Insurance - Liquidation of Insurance Company]
  • (p20) - Karl L. Rubenstein, Special Deputy Insurance Commissioner, State of California -  But the Court went on to say what it saw as the business of insurance is that which touches the fundamental relationship between the policyholder and the insurance company, which, of course, would be things such as the policy,
    • and there are many cases throughout the country that hold that the insurance regulatory statutes, specifically the insolvency statutes, are part of the insurer's - excuse me, yes, of the insured's insurance contract, and that is bound by them, and since these State insurance insolvency regulations will determine whether or not a dollar that is available to — that is in the estate of the insurance company will be paid to the policyholders or paid to somebody else is an issue of overriding importance to State regulators today.
  • (p71) - Several decisions have held that under McCarranFerguson, the state priority statutes should apply and that liquidation of insurance companies is "the business of insurance" within the meaning of McCarran-Ferguson. See, for example, ...
  • (p71) - In the 1987 case of Gordon v U.S. Dept. of Treasury,24 however, it was held that liquidation of an insurance company is not "the business of insurance."

1988 0914 and 0915 - GOV (House) - Insurance Company Failures, John Dingell (D-MI)   ---   [BonkNote]

  • 1878 - GOV (New York) - Testimony Taken Before the Senate Committee on Banks and the ..., Volume 3, By De Witt C. Ellis, New York (State) Legislative Committee on Banks - [PDF-681p-GooglePlay]
    • (p1757-1758) - In the State of Massachusetts, three years ago, there was a life insurance company.
      • It was being attacked; wreckers were after it.
    • The confidence of the people in it was being undermined; and it looked as though the company was bound to go into the bands of a receiver.
    • What does the Superintendent of the Insurance Department do there? Go down and examine it and on finding a deficiency of assets, pass it over into the hands of a receiver to be crushed?
    • On the other hand, looking over the broad field, he takes the insurance company under his hand, nurses it, carries it along; and today it stands as one of the most prominent institutions of the kind in the State of Massachusetts, saved, and the policyholders saved, and the insurance interest of the State saved by just that kind of policy.
    • And two weeks ago in the State of Connecticut, what occured relative to another insurance company?
      • On examination it was found there was a deficiency of assets from $1,000,000 to $4,000,000, and yet what does the department of that State, in conjunction with the Supreme Court, do in the matter of the supervision of that company?
        • Does it pass it over into the hands of a receiver? If it had been done, the policyholders would not have received twenty-five cents on the dollar.
          • Not at all; but the broad, liberal, charitable view was taken.
        • The State department of Connecticut, in conjunction with the Supreme Court, put new men in charge of it, and the company promises to go on to success.
      • It certainly will unless outside influences are brought to bear against it to undermine and crush it.
    • (p1793) - Take the case, as a further illustration, of insurance companies.
      • There have been failures of small insurance companies within the past few years, and the confidence of the public has been badly shattered in connection with them.
      • Suppose, a few years ago, the larger insurance companies, realizing the rocks that were lying ahead, had joined together, and taken up these smaller ones and gone on, the confidence of the public would have remained in the insurance interest, policyholders would have been protected, and the policyholders in these larger companies would have been uninjured, how much better would it have been for the insurance interest?