Consumers – Snippets

  • (p118) – Mrs. Olga Pegelow – Chicago – Executive Life Annuity Policyholder
  • Mrs. PEGELOW .  May I ask a question? — I know there is a guaranty fund in 48 States, but in that guaranty fund, is the money there?
  • Alex MCMILLAN (R-NC).  Well, that is another question.  — In most cases, since it is a guarantee.
  • Mrs. PEGELOW.  But the money is not there. — The money has to first be collected.
  • Mr. McMILLAN. But that means that those who participate in that State in the sale of insurance are obligated to pay into the fund.
  • Mrs. PEGELOW. In other words, all the other insurance companies that are solvent in that State will have to donate the money or pay the money to this guaranty fund;
    • …. it isn’t like the FDIC where the money is there.
  • Mr. McMILLAN. I wish it were.
  • Mrs. PEGELOW. Right. So there is that difference. There is a guaranty fund, but there is no life —
  • Mr. McMILLAN. Those are based on guarantees too. The fact of the matter is —
  • Mrs. PEGELOW. But the Government is behind the FDIC.
  • Mr. McMILLAN. The reason why the taxpayers are having to pay off S&L depositors is because the fund wasn’t adequate to meet the guarantee of the deposits.
  • Mrs. PEGELOW. Correct. And this is the same problem with the insurance money.
    • The money isn’t there.
  • Mr. McMILLAN . You obviously make a very valid point.

1991 0227, 0507, 0509 and 0523 – GOV (House) – Insurance Company Solvency, (CSPAN) Insurance Company Insolvencies, Cardiss Collins (D-IL)  —  [BonkNote]

  • The agent said that Universal Life policy premiums would stay the same, but I came to realize that this is not true of our policies.
    • …what bothers me is that I am afraid that this same misleading information may be the basis of my children’s and grandchildren’s … planning…  (p13)

—  Statement of Gloria Darleen Newberry, Policyholder

1993 0525 – GOV (Senate) – When Will Policyholders Be Given The Truth About Life Insurance?, Howard Metzenbaum (D-OH)  —  [BonkNote]