Risks – Page 2 – [BonkNote]

Moratorium Moratorium Stay Contractual State Courts 1992 0428 / 0505 – GOV – Insurance Guaranty Funds and the Involuntary Transfer of Insurance Policies, aka Insurance Policy Transfers – Metzenbaum [Both Dates PDF-629p-GooglePlay, 0428-No Video / 0505-VIDEO-CSPAN- Insurance Policy Transfers]->Not on govinfo.gov Senate – Committee on the Judiciary – Subcommittee on Antitrust, Monopolies and Business Rights Metzenbaum, 0505 (1:41)…

CDS Spreads 2018 – JIR – CDS Spreads, Systemic Risk and Global Systemically Important Insurers Designations – 41p Geithner: Trial Tr. 1407:21 – 1408:9 (Geithner explaining that the CDS spread is an indication of the market’s perception of AIG’s default risk)).

Liquidity – Policy Loans Loans <ACLI> Re: Policy Loan Developments of 15 Life Insurance Companies The purpose of the meeting was to discuss concerns about the liquidity conditions and the possibilities of future adverse developments. The company people wanted to be sure that Mr. Volcker <Chairman of the Federal Reserve> was fully aware of the…

Guarantees Guarantees Only 2005 – SOA – What’s Backing Your Life Insurance Guarantee? – [LINK]

Moral Hazard Financial Crisis We argue that changes in the life insurance industry have created a nontrivial moral hazard. We document the industry’s shift from sales of life insurance to sales of mainly rate-of-return oriented investments like single premium deferred annuities (SPDAs) and guaranteed investment contracts (GICs). 1992 – FRB-Minneapolis – SPDAs and GICs: Like Money…

Covered Agreements 2018 0220 – NAIC – Covered Agreement Public Hearing – Comment Letters – 176p 2019 – AP – The Future of the US-EU Covered Agreement: How to Drag an Absurdly Federalist Regulatory System into the Global Reinsurance Market – 23p

Low Interest Rate Environment content.naic.org/cipr_topics/topic_low_interest_rates.htm 2017 10 – BIS – Insurance supervisory strategies for a low interest rate environment – 29p 2014 01 – NAIC CIPR – Newsletter naic.org/cipr_newsletter_archive/vol10.pdf Life Insurers to Benefit from Rising Interest Rates, (p16) MetLife’s strategy of shifting our product mix toward less interest-sensitive products has helped mitigate the impact of a…

Crisis in Confidence Terri Vaughan, NAIC CEO/ Iowa (p25) – One of my colleagues likes to say the greatest risk we have right now is a crisis of confidence. — It is that people are scared. — We know our policyholders are scared. Gary Ackerman (D-NY) We cannot address or we certainly cannot legislate the…

Runnable Run Disintermediation Surrender We define “runnables” as “pay-on-demand” transactions which embed defaultable promises made by private agents or state and local governments without explicit insurance from the federal government. 2015 0903 – FRB – The Runnables – [link] A life insurance policy is not indentured servitude. 2014 0310 – Letter – Sheila C. Bair…

Contagion Run – Index 1994 – FRB / AP – Announcements of Asset-Quality Problems and Contagion Effects in the Life Insurance Industry, Journal of Financial Economics, Vol. 35, No. 2 – 29p 2014 1218 – LC – 15-cv-45 – MetLife v FSOC – re: MetLife – D85-2, 85-2 – Explanation of the Basis of the Financial…