1991 0717 and 0724 – GOV (House) – Life Insurance Solvency Issues – Cardiss Collins (D-IL)

  • 1991 0717 and 0724 – GOV (House) – Life Insurance Solvency Issues – Cardiss Collins (D-IL)  —  [BonkNote]
    • [PDF-217p-GooglePlay, <VIDEO-?-0717> 0724-VIDEO-CSPAN] ->Not on govinfo.gov  – R
    • 0717
      • (CSPAN) – Insurance Insolvencies, (NAIC) – The Impact of Junk Bonds, Real Estate and Mortgages on the Life Insurance Industry
      • 1991 0717 – NAIC Testimony – Terence Lennon, New York Department of Insurance – 17p
      • 1991 0717 – NAIC Testimony – Richard D. Baum, Chief Deputy Insurance Commissioner State Of California – 21p
      • 1991 0717 – NAIC Testimony – Thomas H. Borman, Partner, Maslon, Edelman, Borman and Brand, Former Commissioner of Commerce, State of Minnesota – 9p
    •  0724
      • Marcia Horton – ACLI / Lincoln National Life Insurance Company – Vice President – Government Relations
      • Bert McKasy – Commissioner – Minnesota
      • Olga Pegelow – Chicago, IL – Policyholder
      • Eden Sarfaty – President – National Org. Life Health Ins. Guaranty (NOLHGA)
      • House – Committee on Energy and Commerce – Subcommittee on Commerce, Consumer Protection, and Competitiveness
  • The Impact of Junk Bonds, Real Estate and Mortgages on the Life Insurance Industry
  • 0724 – 
    • The committee heard testimony from insurance industry representatives on the reliability state-run insurance guarantee funds, which are intended to repay holders of insurance policies from insurance companies that go bankrupt.
    • Witnesses included two elderly holders of insurance policies who lost money upon the financial failure of the companies with which they held policies
  • 1991 0717 – NAIC Testimony – Terence Lennon, New York Department of Insurance – 17p
    • (p4) – Individual Products
      • The most important feature of the new individual products was the unbundling or separation of the fund accumulation from the mortality function.
      • In this way the consumer could be shown his or her fund and the earnings credited to it as a separate element.
      • Universal life and a variety of variable life and annuity products were the chief vehicles in this effort.
    • (p5) – The key risks for these products were the spread risk and the potential disintermediation risk in the event they were surrendered in response to interest rate changes.
      • Traditional life company management structures were not well suited to managing these risks. (p5)