1977 - GOV (Senate) - Federal Insurance Act of 1977

  • 1977 0912, 0913 and 0914 - GOV (Senate) - Federal Insurance Act of 1977, William Proxmire (D-WI)  ---   [BonkNote]
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    • Senator Edward BROOKE (R-MA). Mr. Chairman, on June 16 of this year I introduced S. 1710, titled The Federal Insurance Act of 1977.
      • This bill is a revised version of S. 3884. which I introduced at the end of the 94th Congress.
      • The bill grew out of my concern about the financial condition of the property casualty insurance business.
    • To Authorize The Issuance Of Charters For CarryIng On The Business Of Insurance, To Provide For The Guarantee Of The Insurance Obligations, And For Other Purposes
    • Senate - Committee on Banking, Housing and Urban Affairs
  • (p4) - Senator Brooke (R-MA) - On May 25 the Washington Post carried a story entitled, “How an Insolvent Firm Keeps Selling Insurance. ”
    • According to that article, as of last May, the approximately 175,000 policyholders of New South Life Insurance Co. of Columbia, S.C., were unable to exercise their rights to obtain the cash surrender value of their policies or to borrow against their policies because since 1971 New Southland been insolvent and policyholders' funds are being used, interest free, to bail out the company and its owners.
    • Yet New South salemen are still selling policies to unsuspecting buyers who apparently are unaware of the company's financial condition.