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Randall Reese's avatar

The onus is really on the rating agencies--AM Best, S&P and Fitch--who make a good living from insurers and reinsurers. After their failures in the mortgage insurance and bond markets in the 00's, they should know better. Another big failure could invite US federal govenment takeover of this market function and put them out of business.

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Mark Goren's avatar

Nicely done. Let's hope this reporting is read by members of the House Financial Services Committee. It's amazing how the pursuit of leverage creates unforeseen problems. Here we go again.

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Bill Thompson's avatar

Shenanigans in high places, as always when it comes to big money offshore. Always.

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Hap Ellis's avatar

Excellent piece!

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David Herr's avatar

This is the problem with having life insurance, an inherently interstate commerce product, "regulated" in a fractured way by 50 states, who simply are not big or competent enough to police international shenanigans. Perhaps it might be worth a limited federal bailout, to get insurance, like other financial products, under federal regulation (which itself needs some tightening regarding fiduciary duties and accounting).

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