Nolhga Bails Out a Healthy Insurance Company Hearing Before the Subcommittee O

Cover Nolhga Bails Out a Healthy Insurance Company Hearing Before the Subcommittee O
Nolhga Bails Out a Healthy Insurance Company Hearing Before the Subcommittee O
Monopolies United States Congress Senate Committee On the
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And every one Security Benefit lost. Every time they wound up paying the full amount. Texas and Indi- ana say you shouldn't pay it, but Security Benefit settled for the full benefit of the annuities with some annuitants. NOLHGA could have paid the annuitants and then sued Security Benefit to recover your costs. That way the taxpayers would not have paid for the li- ability of a solvent company.
I have difficulty in understanding why NOLHGA would waive their right to sue Security Benefit and mak
...ing a settlement when they only contributed a pittance to it. They contributed $7 million to a settlement of $30 million.
Mr. Blaine. Again, Mr. Chairman, let me repeat that Security Benefit Life clearly indicated that they were willing to sue the guaranty associations if they were made liable for these policies without any contribution from the guaranty associations.
We did not need to get into litigation with that company and drag out the settlement of this problem.
Senator Metzenbaum. I think that the way NOLHGA handled this Security Benefit situation actually raises a question about whose interest NOLHGA actually serves.


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