That is not true. Companies that primarily write annuities have gone bust in the past.Does anyone know - is that part about no annuity going bust true?
I’ll give a few examples. The first examples go back to the early 1990s. Executive Life and First Capital both went insolvent due to junk bond losses. MYGAs didn’t exist at that time, and the annuity products concerned were primarily accumulation annuities that had one year rate guarantees. Much has changed with both the products and the regulatory environment since that time, but that’s not to say it can’t happen again.
A more recent example is the insolvency of Colorado Bankers and affiliated companies. That company was a writer of MYGAs. Policyholders haven’t had access to their funds for about five years ago, and the guaranty associations haven’t yet been able to compensate policyholders due to the litigious nature of the company’s owner. The owner has previously been convicted of fraud in connection with the insolvency, but he keeps filing appeals and otherwise delaying the resolution of the case. Google “Colorado Bankers” and you’ll find articles about the plight of the policyholders.
Statistics: Posted by Stinky — Thu Sep 12, 2024 6:15 pm — Replies 2783 — Views 379882
