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Holistic investing IF YOU ARE LIKE MOST FORBES readers, you lead a complicated financial life that cuts across multiple portfolios, tax issues, insurance policies-and, perhaps, careers.
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Which raises an even bigger issue: insurance.
The new rules would affect only companies that issue insurance.
Proposals that had seemed promising, including using the fund to issue insurance on government bond issues, have quickly run aground.
In 2004, the insurer made a fateful decision, to stop doing due diligence on mortgage loans before it issued insurance on securities based on those loans.
Prudential said in a statement, "Our captives are capitalized to a level consistent with 'AA' financial strength rating targets of our issuing insurance entities".
It suffered major losses and had to go through a restructuring because of the subprime mortgage crisis and is no longer issuing insurance contracts.
Previously, the newspaper had reported an apology by the locally based insurance giant Aetna for its having issued insurance policies on slaves in the 1850's.
But the effect is to transfer life-insurance policies, which in aggregate represent $4 trillion of customers' assets, to entities which often do not have licences to issue insurance themselves and are beyond the scrutiny of credit-rating agencies.
Several proposals have been floated in the last year, ranging from Medicare "premium support" plans that will give you money to buy privately issued insurance policies to means-tested benefit reductions for higher-income retirees.
"I'm stunned that a lone man comes armed into the Carlton and steals millions," said Gilles Caudrelier, a French executive who specializes in issuing insurance for jewelry exhibitions, which are required to post security dogs and private guards.
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