State insurance commissioners have turned down a request by the nation's insurers to loosen up the amount of funds insurers have to keep in reserve to pay life insurance claims.
As part of the continuing saga of the economic tailspin, the National Association of Insurance Commissioners (NAIC) held a hearing last January 29 on requests by insurers to ease the reserve requirements of life insurance companies. The reserve is the amount of funds each state requires insurers to keep safe to support payments which may have to be paid out on policies.
In announcing the decision, NAIC's president said the insurance industry is generally in better shape than the rest of the financial services sector because of strong state solvency regulations.
The proposed changes were opposed by some consumer groups.
Tuesday, January 27, 2009
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