And in extremis a "policyholder guarantee fund" should be able to take control.
Japan Post will not have to pay into the industry's policyholder-protection fund.
A further stress on the money supply occurred in late 1906, when the Bank of England raised its interest rates, partly in response to UK insurance companies paying out so much to US policyholders, and more funds remained in London than expected.
"Many take a large percentage of the insurance proceeds, leaving the policyholder with insufficient funds to repair the dwelling," she says.
AXA, the world's largest insurer, won approval from a British court yesterday for a plan to divide $1.7 billion $2.5 billionon) in surplus funds among policyholders and stockholders.
Standard Life has set aside almost £400 million to pay policyholders but no further funds will be provided because, basically, the insurer has decided it cannot afford this at a time when it is trying to get its finances into shape for a stock market flotation.
Congratulations, Avik: You've just defined health insurance, which distributes funds from policyholders who don't need medical care just now to people who do.
The insured does not, however, have a claim on all the earnings that accrue to the insurance company from investing the funds of its policyholders.
Donald Gabay, a Manhattan lawyer, said that New York's insurance guarantee fund, which protects policyholders if an insurer goes bankrupt, would not apply here.
The warning came one day after the government announced the formation of a committee to conduct a full-scale inquiry into the collapse and gave detailed plans for a $265 million taxpayer-financed fund to help policyholders.
