Guaranty Fund Issues Working Group - (E) - NAIC

  • (p515) - The working group identified several issues relevant to the charges, including:
    • Does the current structure for handling life insurer insolvencies encourage a policyholder "run"?

1995-2, NAIC Proceedings - Guaranty Fund Issues Working Group

  • Receivership and Insolvency (E) Task Force - NAIC - content.naic.org/cmte_e_receivership.htm
  • Guaranty Fund Issues Working Group of the Insolvency (E) Task Force
  • NAIC - Life and Health Insurance Guaranty Association Model Act - 520 - 68p
  • 1992 - NAIC - Issues Concerning Insurance Guaranty Funds, Presented to the NAIC Guaranty Fund (EX4) Task Force, by Robert Klein - 317p
  • 2000-1, NAIC Proceedings
    • (p824) - Discuss Policy Statement Concerning the Protection of Insurance Company Assets in the Insolvency of a Diversified Financial Holding Company
  • (p589) - Ms. Pruitt said that some limitation on policy restructuring is fair, but that the working group should note that some insolvencies have been caused by insurers issuing policies containing unrealistic promises and guarantees.

1995-1, NAIC Proceedings - Guaranty Fund Issues Working Group B of the Insolvency (EX5) Subcommittee - September 11, 1995

  • 1995-1, NAIC Proceedings - Guaranty Fund Issues Working Group B of the Insolvency (EX5) Subcommittee - September 11, 1995
    • (p588) - The first person to testify was Commissioner Dwight K. Bartlett III (Md.). Commissioner Bartlett told the working group that guaranty associations were developed during a time when "life insurers sold life insurance."
      • He cited the recent rehabilitation of Mutual Benefit Life Insurance Company as an example of the shortcomings of the present guaranty association system.
      • The receiver and guaranty associations did the best job possible within the current framework, but policyholders were forced to bear a disproportionate share of the costs involved, he said.
      • Commissioner Bartlett characterized his proposal as representing a middle ground between the current system and a system like the Federal Deposit Insurance Corporation (FDIC) advocated by some.

  • (p588) - Len Stillman (Utah) asked why consumers who purchase investment type insurance products should be afforded protection that other investors are not offered.
    • Commissioner Bartlett responded that there is a perception that products offered by life insurers are more secure than other investments.

  • (p589) - Ms. Pruitt said that some limitation on policy restructuring is fair, but that the working group should note that some insolvencies have been caused by insurers issuing policies containing unrealistic promises and guarantees.

<Words: "run on the bank.", 1. Moratoria on Surrenders and Withdrawals of Cash Values, 

  • 1995-2, NAIC Proceedings - Guaranty Fund Issues Working Group
    • (p515) - The working group identified several issues relevant to the charges, including:
      • ... are the current limitations on moratoria sufficient?
      • What degree of discretion should the receiver and the supervising court be given to enable them to deal with the unique circumstances of each insolvency?
      • What obligations do guaranty associations have to policyholders in the event a moratorium exceeds six months?
      • Are the hardship criteria in use in most insolvencies adequate to address the needs of policyholders? What factors should be considered by the supervising court with regard to extension of a moratorium?
    • Does the current structure for handling life insurer insolvencies encourage a policyholder "run"?
      • Are the shortcomings of the post insolvency assessment state-based guaranty fund system sufficient to justify serious consideration of alternative systems, or can the problems be fixed? 
  • Life and health insurance guaranty association model act: chronological summary of action
    • Life and Health Insurance Guaranty Association Model Act -1971-V1.pdf
    • Life and Health Insurance Guaranty Association Model Act -1976-V1.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1977-V2.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1978-V1.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1986-V1.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1987-V2.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1988-V1.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1993-2Q.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1993-3Q.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1995-1Q.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1995-3Q.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1996-4Q-V2.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1997-4Q-V1.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1998-1Q.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1999-1Q.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-1999-2Q.pdf
    • Life and Health Insurance Guaranty Association Model Act - PROC-2009-1Q-V1.pdf