Government Hearings - 1991

  • 1991 - 0227, 0507/09/23 - GOV - Insurance Company Solvency, aka Insurance Company Insolvencies
    • [PDF-369p-GooglePlay, No Video] ->Not on govinfo.gov
    • Senate - Committee on the Judiciary - Subcommittee on Antitrust, Monopolies, and Business Rights

  • The Senate Commerce Committee heard testimony on the financial failure of the Executive Life Insurance Company and the financial stability of the insurance industry in the U.S. Insurance executives discussed the failure of the Executive Life Insurance Company and its effect on holders of policies which currently may or may not be financially secure.
    • They also proposed methods of detecting and preventing imminent financial failures of insurance companies.
    • This hearing followed a previous hearing on May 7 which also examined the failure of the life insurance company.
    •  In April 1990, Executive Life Insurance Company of California and Executive Life Insurance Company of New York were put into conservatorships by their respective states, making them the largest government seizures in the history of the life insurance industry.
    • The financial collapse occurred despite approval from insurance rating firms and an independent accounting firm.
  • 1991 0409 - GOV - How Insurance Laws Are Made NAIC
    • [PDF-358p-GooglePlay, No Video] ->Not on govinfo.gov 
    • Senate - Committee on the Judiciary -Subcommittee on Antitrust, Monopolies, and Business Rights
  • x-1991 0430  - GOV - Pension Annuity [sic] protection in light of the Executive Life Insurance Company failure
    • [PDF-197-GooglePlay, No Video] ->Not on govinfo.gov 
    • House - SELECT COMMITTEE ON AGINGSUBCOMMITTEE ON RETIREMENT INCOME AND EMPLOYMENT 
    • [PDF-369p-GooglePlay, <No Video-0227/0507 and 0523> -  0509-VIDEO-CSPAN->Not on govinfo.gov 
    • 1991 0509
      • Richard Minck (ACLI)
      • Eden Sarfaty (National Org. Life Health Ins. Guaranty-NOLGHA)
      • Donn Sigerson (Policyholder)
      • Thomas Sutton (Pacific Life/ACLI)
  • Executive Life Insurance Failure
    • [PDF-147p-GooglePlay, VIDEO-CSPAN->Not on govinfo.gov 
    • John Garamendi - California - Insurance Commissioner
    • Salvatori Curiale - New York - Superintendent Insurance
    • House - SUBCOMMITTEE ON SELECT REVENUE MEASURES - COMMITTEE ON WAYS AND MEANS

The subcommittee heard testimony on the failure of the Executive Life Insurance Company, the largest life insurance company to date to suffer financial collapse.

  • Mr. Garamendi documented the growth and collapse of the life insurance company, which relied on investments in high yield junk bonds to finance the high yields on its products.
  • Executive Life had invested $6.4 billion in the junk bond market, 60 percent of its assets.
  • Following the collapse of the junk bond market, and the subsequent collapse of Executive Life Insurance Company, 200,000 policy holders in Executive Life are unsure of their insurance coverage.
  • Mr. Garamendi said some or all Executive Life Insurance policy holders may have to take a loss if the company can be saved.
  • The committee examined the regulatory policies that failed in the collapse of the Executive Life Insurance Company, the methods being used to attempt to restructure the company, and methods that may prevent similar collapses in the future.
  • 1991 0613 - GOV - INSURANCE COMPETITIVE PRICING ACT OF 1991
    • [PDF-237p-GooglePlay, No VIDEO] ->Not on govinfo.gov
    • House - COMMITTEE ON THE JUDICIARY - SUBCOMMITTEE ON ECONOMIC AND COMMERCIAL LAW 
  • 1991 0620 - GOV - Retirees at Risk: The Executive Life Bankruptcy
    • [PDF-77p-GooglePlay, No Video] ->Not on govinfo.gov
    • Senate - COMMITTEE ON LABOR AND HUMAN RESOURCES SUBCOMMITTEE ON LABOR
  • 1991 0717and24- GOV - Life Insurance Solvency Issues
    • [PDF-217p-GooglePlay, <No Video-0717> 0724-VIDEO-CSPAN->Not on govinfo.gov 
    • 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

  • 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

  • x- 1991 0729 - GOV - Regulation of Insurance Companies and the Role of The National Association of Insurance Commissioners
    • [PDF- 291p-GooglePlay, No Video] ->Not on govinfo.gov
    • House - COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS - SUBCOMMITTEE ON POLICY RESEARCH AND INSURANCE
  • x-1991 0731 - GOV - NAIC oversight of the Executive Life Insurance Company
    • [PDF-163p-GooglePlay, No Video] ->Not on govinfo.gov 
    • Senate - COMMITTEE ON THE JUDICIARY - SUBCOMMITTEE ON ANTITRUST, MONOPOLIES AND BUSINESS RIGHTS  
    • on the adequacy and effectiveness of state regulation of the insurance industry in America
  • 1991 0926 - GOV - Resolution of troubled insurance companies and the role of state guaranty associations
    • [PDF-151p-GooglePlay, No Video] ->Not on govinfo.gov 
    • House - COMMITTEE ON BANKING , FINANCE AND URBAN AFFAIRS - SUBCOMMITTEE POLICY RESEARCH AND INSURANCE