State insurer insolvency system in need of repair; unqualified, poorly supervised receivers have provoked calls for overhaul and federalization
Article Abstract:
The state insurance company receivership system has flaws, but these can be corrected. Having state regulations pertain more to procedure while the federal ones deal with insolvencies and interstate and foreign commerce matters would leave the states with little incentive to regulate the industry with care. When the states are responsible for liquidation, they have this incentive. Many of the clauses put in the National Ass'n of Insurance Commissioners model act in late 1994 are also being placed in revised state receivership statutes.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1996
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New takeover tactics could be deal model; nationwide's strategy may be copied if merger ok'd
Article Abstract:
Few hostile takeovers have been tried in the insurance industry since its heavy regulation makes a battle expensive, and if the $1.5bil attempted hostile takeover by Nationwide Mutual Insurance Co's of Allied Group Inc and Allied Mutual Insurance Co succeeds, lawyers in future insurance deals may copy from this one. The focus on winning the support of company employees vias the ESOP also made the deal different. The employees are the single largest group of shareholders other than the entrenched board.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
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Insurer's collapse highlights hazards to investors; Executive Life's insolvency raises novel issues for in-house counsel and other pension fund advisers
Article Abstract:
The demise of Executive Life Insurance Co (ELIC) has raised several new issues for purchasers of recently developed institutional investments from insurance companies. Investors in ELIC's guaranteed investment contracts fought to show that they were in effect holders of insurance policies, and thus have priority in distribution of the insurer's assets. The results of ELIC set a precedent giving regulators new powers, but also highlight the conflict between settling and non-settling claimants.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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