by rjames » Wed Dec 05, 2007 02:44 pm
This happened to one of the biggest insurance companies in the Philippines. I'm just glad I'm not one of their clients. If this thing happens, who will pay for the dividends and the pensions if ever I have competed paying the premiums in the contract? And will I still be able to get the original amount agreed upon on the contract?
Posted: Thu Dec 06, 2007 11:36 am Post Subject:
Dreadful!! Isn't there any statutory body that looks after these issues?
who will pay for the dividends and the pensions if ever I have competed paying the premiums in the contract? And will I still be able to get the original amount agreed upon on the contract?
You have raised some very important questions. Even I would love to have the answer for those.
Posted: Thu Dec 06, 2007 11:46 am Post Subject: The Insurance Grarantee Association?
Isn't there any statutory body that looks after these issues?
There should be some, like the Insurance Guarantee Association. Every state has this legislative body. The state Insurance Guarantee Association pays off the claims when the insurance company goes bankrupt.
Rupert
Posted: Thu Dec 06, 2007 12:30 pm Post Subject:
Right lemon 2007 it is a dreadful experience for the policy holders when their carrier goes bankrupt. That's why the state authorities impose many regulatory conditions upon the insurance companies to do business.
The state insurance departments are set up to monitor the financial performance of the insurance companies. Also, the insurers are required to contribute towards the ‘guaranty fund' in order to obtain license. This fund is established and managed by the State Insurance Commissioner. This fund will settle the claims if the insurer undergoes liquidation.
However, despite of all the best efforts form the regulators the insurance companies still go bankrupt which is sheer bad luck or can say the way of market.
Warm regards,
Carol
Posted: Thu Dec 06, 2007 04:12 pm Post Subject:
This is really bad for the insurance holders and I'm not sure every state has good regulations on insurance companies. It also should depend on the type of policy, investment type policies have been introduced where I live and they have the same regulations banks have - everything is guaranteed by the government up to a certain amount( 30k euro I think) And there is always the chance that some other company will acquire the bankrupted one and the holder's policies will be safe once more.
Posted: Sat Oct 22, 2011 04:07 am Post Subject:
What is amazing in that, i don't know what you are trying to tell here.
Posted: Sun Oct 23, 2011 10:16 pm Post Subject:
I would hope that insurance companies have some governing board to protect them - like the FDIC for banks. Or else there would be no protection for the companies and therefore no insurance.
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