1991 0717 and 0724 - GOV (House) - Life Insurance Solvency Issues - Cardiss Collins (D-IL)

  • 1991 0717 and 0724 - GOV (House) - Life Insurance Solvency Issues, (CSPAN) - Insurance Insolvencies, (NAIC) - The Impact of Junk Bonds, Real Estate and Mortgages on the Life Insurance Industry - Cardiss Collins (D-IL)  ---   [BonkNote]
    • [PDF-217p-GooglePlay, <VIDEO-?-0717> 0724-VIDEO-CSPAN] ->Not on govinfo.gov  - R
    • 0717
      • 1991 0717 - NAIC Testimony - Terence Lennon, New York Department of Insurance - 17p
      • 1991 0717 - NAIC Testimony- Richard D. Baum, Chief Deputy Insurance Commissioner State Of California - 21p
      • 1991 0717 - NAIC Testimony - Thomas H. Borman, Partner, Maslon,Edelman, Borman and Brand, Former Commissioner of Commerce, State of Minnesota - 9p
    •  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
  • The Impact of Junk Bonds, Real Estate and Mortgages on the Life Insurance Industry
  • 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
  • 1991 0717 - NAIC Testimony - Terence Lennon, New York Department of Insurance - 17p
    • (p4) - Individual Products
      • The most important feature of the new individual products was the unbundling or separation of the fund accumulation from the mortality function.
      • In this way the consumer could be shown his or her fund and the earnings credited to it as a separate element.
      • Universal life and a variety of variable life and annuity products were the chief vehicles in this effort.
    • (p5) - The key risks for these products were the spread risk and the potential disintermediation risk in the event they were surrendered in response to interest rate changes.
      • Traditional life company management structures were not well suited to managing these risks. (p5)