After the early 1990s demise of Executive Life (depressed junk bonds) and MutualBenefitLife (soured real estate) policies were transferred and almost all customers made whole.
Perhaps the most important is that, due in good part to the demise of Executive Life and MutualBenefit, several rating agencies now scrutinise the ability of life insurers to meet their claims.
In April 1991, when questions about MutualBenefit first surfaced, the insurance industry was reeling from the collapse of another big company, Executive Life.
Variable annuities are a form of life insurance that includes a lump-sum death benefit and tax-deferred investments, often mutual funds, which are supposed to provide income during a client's lifetime.