Comments on: At Last, Death! http://alephblog.com/2009/10/03/at-last-death/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Fri, 25 May 2012 21:31:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: David Merkelhttp://alephblog.com/2009/10/03/at-last-death/comment-page-1/#comment-23426 David Merkel Tue, 06 Oct 2009 04:00:46 +0000 http://alephblog.com/?p=2055#comment-23426 Ms. Re, the treaty passed no risks at all, for all practical purposes it was a loan -- that's why the GAAP auditor objected, and why it should not have been allowed vredit for stat purposes. If you're really curious, it was in the public filings -- but I don't have copies of them from my prior employer. Ms. Re, the treaty passed no risks at all, for all practical purposes it was a loan — that’s why the GAAP auditor objected, and why it should not have been allowed vredit for stat purposes. If you’re really curious, it was in the public filings — but I don’t have copies of them from my prior employer.

]]> By: Ms. Rehttp://alephblog.com/2009/10/03/at-last-death/comment-page-1/#comment-23425 Ms. Re Tue, 06 Oct 2009 02:58:38 +0000 http://alephblog.com/?p=2055#comment-23425 it's not terribly surprising that state regulators might allow reserve credit for a reinsurance transasaction whereas reserve credit was not allowed for GAAP purposes...I have no idea what the reinsurance treaty was about, but statutory reserve credit is likely governed by the 1992 Model Reg for reinsurance, whereas the appropriate GAAP standard is most likely FAS 113...it is quite conceiveable that the transaction met the model reg requirements for reserve transfer, but did not meet the GAAP requirements (although I do not know for certain that was the case)...basically, financial reinsurance exists due to the conservatisms inherent in statutory accounting, at least on the life insurance side...abuses generally take place when companies try to extend financial reinsuranc e to their GAAP financial statements, ala AIG...jmho it’s not terribly surprising that state regulators might allow reserve credit for a reinsurance transasaction whereas reserve credit was not allowed for GAAP purposes…I have no idea what the reinsurance treaty was about, but statutory reserve credit is likely governed by the 1992 Model Reg for reinsurance, whereas the appropriate GAAP standard is most likely FAS 113…it is quite conceiveable that the transaction met the model reg requirements for reserve transfer, but did not meet the GAAP requirements (although I do not know for certain that was the case)…basically, financial reinsurance exists due to the conservatisms inherent in statutory accounting, at least on the life insurance side…abuses generally take place when companies try to extend financial reinsuranc e to their GAAP financial statements, ala AIG…jmho

]]> By: AllanFhttp://alephblog.com/2009/10/03/at-last-death/comment-page-1/#comment-23423 AllanF Mon, 05 Oct 2009 03:07:59 +0000 http://alephblog.com/?p=2055#comment-23423 <i>but another thing not to return the call of one who was once a friend.</i> In retrospect, they <b>were</b> returning a favor to a friend. It's not like they could be fully honest with you, right? But deep down they must have known the score and decided they didn't want you getting involved. but another thing not to return the call of one who was once a friend.

In retrospect, they were returning a favor to a friend. It’s not like they could be fully honest with you, right? But deep down they must have known the score and decided they didn’t want you getting involved.

]]> By: ciwoodhttp://alephblog.com/2009/10/03/at-last-death/comment-page-1/#comment-23420 ciwood Sat, 03 Oct 2009 20:47:17 +0000 http://alephblog.com/?p=2055#comment-23420 Love your site. I have long studied LTC insurance offers and it seems like all of them are just asset protection insurance for 100k or 200k but none guarantee premiums will not go up or that the company will be around when you need them. I have decided to self insure. What advice are you giving clients for LTC insurance??? Love your site.

I have long studied LTC insurance offers and it seems like all of them are just asset protection insurance for 100k or 200k but none guarantee premiums will not go up or that the company will be around when you need them. I have decided to self insure. What advice are you giving clients for LTC insurance???

]]> By: Josh Sternhttp://alephblog.com/2009/10/03/at-last-death/comment-page-1/#comment-23419 Josh Stern Sat, 03 Oct 2009 19:24:55 +0000 http://alephblog.com/?p=2055#comment-23419 The liability limits on the state guaranty funds are not so high relative to tail risk of long term care: http://www.annuityadvantage.com/stateguarantee.htm The liability limits on the state guaranty funds are not so high relative to tail risk of long term care: http://www.annuityadvantage.com/stateguarantee.htm

]]> By: A.S.http://alephblog.com/2009/10/03/at-last-death/comment-page-1/#comment-23418 A.S. Sat, 03 Oct 2009 15:54:18 +0000 http://alephblog.com/?p=2055#comment-23418 Words of wisdom indeed. Thanks David. Words of wisdom indeed. Thanks David.

]]> By: fergersthttp://alephblog.com/2009/10/03/at-last-death/comment-page-1/#comment-23417 fergerst Sat, 03 Oct 2009 08:05:59 +0000 http://alephblog.com/?p=2055#comment-23417 alas, the first story on the next bubble to burst... insurance. But an insurance company has the ability to always make their books work by denying claims. They also use less leverage overall at least that's what we thought. alas, the first story on the next bubble to burst… insurance. But an insurance company has the ability to always make their books work by denying claims. They also use less leverage overall at least that’s what we thought.

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