Comments on: What if Insurance Companies Don?t Pay?

By: Quotes

Quotes — Tue, 14 Apr 2009 13:20:59 +0000

This is actually quite a good question to ask, I would definitely be interested to get the reactions to this one! thanks for the post.

By: lifequotes

lifequotes — Sun, 15 Mar 2009 06:05:06 +0000

Thanks for such informative post, i am impressed! keep posts like this coming, will definitely be back again.

By: rental insurance

rental insurance — Fri, 13 Mar 2009 12:51:41 +0000

nice info in this site, I got many information here

By: Insurance

Insurance — Sat, 07 Mar 2009 01:56:03 +0000

This is quite informative, I am totally impressed, thanks for posting.

By: virtual insurance

virtual insurance — Sat, 21 Feb 2009 01:19:38 +0000

just go to the court and report them, its happen to me last year and need 3 month to completed it

By: virtual insurance

virtual insurance — Thu, 19 Feb 2009 08:42:10 +0000

when they dont pay, just go to the court and ask them to manage it

By: Bob MacDonald

Bob MacDonald — Mon, 27 Oct 2008 16:45:32 +0000

I agree that as a shareholder of the insurance companies named in this post there is reason for concern. However, as a policyholder I would not have the same concern.
AIG is a good example. AIG found itself in trouble because it put the surplus of the AIG holding company at risk in unregulated Credit Default Swaps (CDS), not the surplus and reserves of its insurance companies who have the direct obligation to policyholders.
AIG insurance companies and their liabilities are walled-off and segregated from the AIG holding company. Insurance regulators require that insulated, conservative reserves are set aside at the insurance company level to assure payment of any policy liability. And, at least 90 percent of those reserves must be in regulated fixed income investments. While 10 percent of those reserves may be invested in equities or real estate, products such as CDS and other like securities are not allowed to be counted as a reserve to insurance liabilities.
The same is true for the other companies listed in the post. The loses being reported come from investment of the company surplus, not reserves held for policyholders. It is for that reason shareholders my have some concern, but not policyholders. www.bobmaconbusiness.com