Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe Community Center
Current Events
When pensions run dry...
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="wkmac" data-source="post: 794129" data-attributes="member: 2189"><p>Just an aside since it was mentioned and seems to be of some limited debate here, like banking, the insurance industry is not required nor do they maintain 100% reserves to answer all full face value policy claims. Like banks, there is a <a href="http://www.finweb.com/insurance/how-are-insurance-company-reserve-amounts-determined.html" target="_blank"><span style="color: red">reserve requirement</span></a> typically in the 10% to 12% of all policies written. Also using the Allstate example given earlier and taking that to all policies, if you total the full face value of all policies written across the entire industry, even if the assets existed in hand, there is not enough currency in total circulation to even allow such assets to convert in the first place nor is there even that much money on hand or even as pure book entry to satisfy such massive claims. However, at the same time, the chance of such massive claims being made are so remote, we'd have far greater problems than asset conversion if such scenario did happen.</p></blockquote><p></p>
[QUOTE="wkmac, post: 794129, member: 2189"] Just an aside since it was mentioned and seems to be of some limited debate here, like banking, the insurance industry is not required nor do they maintain 100% reserves to answer all full face value policy claims. Like banks, there is a [URL="http://www.finweb.com/insurance/how-are-insurance-company-reserve-amounts-determined.html"][COLOR=red]reserve requirement[/COLOR][/URL] typically in the 10% to 12% of all policies written. Also using the Allstate example given earlier and taking that to all policies, if you total the full face value of all policies written across the entire industry, even if the assets existed in hand, there is not enough currency in total circulation to even allow such assets to convert in the first place nor is there even that much money on hand or even as pure book entry to satisfy such massive claims. However, at the same time, the chance of such massive claims being made are so remote, we'd have far greater problems than asset conversion if such scenario did happen. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe Community Center
Current Events
When pensions run dry...
Top