[Northern Boy]

Originally Posted by peaceandlove

U.S. to Offer Aid to Life Insurers

APRIL 8, 2009
By SCOTT PATTERSON, DEBORAH SOLOMON AND LESLIE SCISM

The Treasury Department has decided to extend bailout funds to a number of struggling life-insurance companies, helping an industry that is a linchpin of the U.S. financial system, people familiar with the matter said.

The department is expected to announce the expansion of the Troubled Asset Relief Program to aid the ailing industry within the next several days, these people said.

The news will come as a relief to a number of iconic American companies that have suffered big losses made worse by generous promises to buyers of some investment products. Shares of life insurers have fallen more than 40% this year. Their troubles led to a string of rating-agency downgrades that, in a vicious cycle, made it more difficult for some insurers to raise funds.

The life-insurance industry is an important piece of the U.S. financial system. Millions of Americans have entrusted their families' financial safety to these companies, so keeping them on solid footing is crucial to maintaining confidence. If massive numbers of customers sought to redeem their policies, it could cause a cash crunch for some companies. And because insurers invest the premiums they receive from customers into bonds, real estate and other investments, they are major holders of securities. If they needed to sell off holdings to raise cash, it could cause markets to tumble.

Article and video continues: http://online.wsj.com/article/SB1239...ml#mod=testMod

Source: http://solari.com/blog/

I read somewhere yesterday that now that the G20 summit is done they are going to let the big banks go bust as we all know they did not address the derivatives problem and as you say the Insurance industry is now lining up for there hand out . Can you Imagine getting in an auto accident and finding out your insurance coverage is now no good because your company has very quietly gone out of business because of lack of funds