Life Insurance Carriers getting Financial Relief

By | March 10, 2009
I think that it is actually okay for these Life Carrier to get a little relief from all the financial turbulence. These carriers do play a fairly large role in our financial lives so why shouldn’t they get some relief? Yes I am biased but seeing large Life Insurance Carriers going down in flames would not be good.
clipped from www.washingtonpost.com
States Give Regulatory Relief to Insurers

State regulators trying to help life insurance companies cope with the financial crisis have granted $6 billion of relief from requirements meant to ensure financial stability, according to data released yesterday.

The top recipients were Allstate Life Insurance Co. with $1.4 billion; Jackson National Life Insurance Co. with $825.6 million and Hartford Life Insurance Co. with $655.2 million, according to the National Association of Insurance Commissioners.

The relief typically came in the form of accounting changes that allowed companies to pad their financial cushions, in effect making them appear stronger than they otherwise would. Insurance companies are required to maintain such cushions, known as capital and surplus, to absorb losses and pay claims.

Critics such as the Consumer Federation of America have argued that the relief could weaken insurance companies and leave policyholders at greater risk.

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