Banking Without Guarantees? Public Policy Considerations Concerning Insurance Company Retained Asset Accounts

Abstract

Insurer utilization of retained asset accounts in life insurance have drawn increased regulatory supervision in recent years. This article discusses retained asset accounts, current regulation of the accounts at the state level, and legal issues which have arisen in reported court decisions. It recommends a number of mechanisms states can implement in statutes to increase transparency concerning retained asset accounts to life insurance beneficiaries.