Even if regulators block their use, policyholders may still pay for their predictions indirectly.
In the battle of private insurers versus policyholder owned, the policyholders come out on top.
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Policyholders are living longer and generating more in claims than initially projected, industry participants said.
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Those that do not must provide policyholders the difference in the form of a rebate.
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Genworth has offered the assessment and matchmaking service to its long-term-care policyholders for four years.
Worse, life insurers have limited discretion to boost their finances by reducing payouts to policyholders.
If only insurers could stealthily gather a few titbits about their potential policyholders' consumption habits.
Policyholders can repay the loans later and the death benefits go back up again.
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When the junk-bond market subsequently recovered, Executive Life's former policyholders saw none of the benefit.
The regulator and the insurer said the move was in the best interests of 1.3 million policyholders.
But the Equitable Members Action Group (EMAG) said that some of the oldest policyholders were awaiting payouts.
Existing policyholders remain concerned about how the compensation scheme, and the ombudsman's rulings, will affect the insurer.
Policyholders could still sue the company, but they would hurt other members of the mutually owned firm.
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Equitable Life, a mutual, nearly collapsed four years ago after promising policyholders more than it could pay.
At least 80% of their assets earmarked for policyholders must be in the same currency as the claims.
Individual policyholders are relatively safe: they will have almost all their claims met under the Policyholder Protection Act.
One way companies are managing profits is by shifting risk to policyholders with exceptions to coverage and higher deductibles.
It aims to increase the protect policyholders by imposing new capital adequacy measures.
Policyholders can rely on the insurance guarantee funds of the various states, to the extent that they are available.
As Equitable Life subsided into chaos, the policyholders grew fearful for their money.
If many more policyholders were to sue the firm, the company might go bust, a tempting scenario for some.
ECONOMIST: Policyholders' hopes for compensation are dwindling
On average, policyholders lost 25% of their savings, say the action groups, though some saw their nest eggs halved.
ECONOMIST: Policyholders' hopes for compensation are dwindling
Hundreds of policyholders have already been compensated with a settlement out of court.
ECONOMIST: Policyholders' hopes for compensation are dwindling
In effect, policyholders are borrowing from and repaying themselves just as they do with any bank or investment account.
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The company also said it wanted to drop wind and hail coverage for 30, 000 homeowner policyholders in 18 Louisiana parishes.
Had they invested more heavily in U.S. securities, for example, both shareholders and policyholders would have been much better off.
Insurers would not have accounted for this decades ago, forcing them to recoup the money from current policyholders, it says.
Among them are 16, 000 former policyholders who joined the society after 1998, but left before members signed a compromise deal.
There are some alternatives and options for universal life policyholders, depending on how insurable they still are and other circumstances.
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But the Associations of British Insurers (ABI) said policyholders often thought their vehicle was worth more than was actually the case.
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