Direct and Ripple Effects of the Economic Crisis on Insurance Companies, Policies and Advisors
Overview
A simple, periodic verification of the credit-worthiness of an insurance company and the adequacy of the policy funding is not sufficient to fulfill the requirements of the Uniform Prudent Investor Act. A paper from J.R. Katz recommends that reviews of policy suitability include financial strength and claims paying ability, cost competitiveness, pricing stability, cash value liquidity and historical performance of invested assets underlying policy cash values.