Troubled Companies

  • NAIC - Troubled Company Working Group of the Examination Oversight (EX4) Task Force
    • 1990-2, NAIC Proceedings
      • Chair - Norman Koefoed, Chair (Ill);
      • (p )- The Chair notified the task force that a Non-Investment Bonds Working Group had been appointed to review companies with large holdings in non-investment grade bonds.
        • The group had met three times since being organized.
        • The initial concern has been with Executive Life Insurance Company of California.
        • The group has received reports from both an independent actuarial firm and the company and is monitoring the situation.
        • The chair advised that no precipitous action should be necessary against the company.
        • In addition, the group has provided the California Department with a list of recommendations regarding needed information from the company.
        • The chair stated that information provided to the group indicates the company to be in a very liquid position, with surrenders declining as compared to January and February of this year.
        • Mr. Montgomery stated that the Actuarial Valuation Report from Milliman and Robertson should be completed by week end and copies would be available to states from the actuarial firm. 
  • Many troubled companies have become so because management has not been structured to recognize and address the problems that can arise in the insurance industry.

2004 -  NAIC - Market Conduct Examiners Handbook - 1582p