• (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]