GAO skewers state regulators. (General Accounting Office)

National Underwriter Life & Health-Financial Services Edition, September, 1992 by Brostoff, Steven

General Accounting Office Asst Comptroller General Richard L. Fogel told the House Subcommittee on Oversight and Investigations that the inefficiency and irresponsibility of California, New York and Virginia state regulators caused the insolvency of four life insurance companies. Fogel charged that the regulators failed to act on the known financial problems of Executive Life, First Capital, Executive Life of New York and Fidelity Bankers. The subcommittee is investigating insurance regulatory reform and possible federal entry into state oversight activities.

WASHINGTON - State regulators were ill-equipped and unwilling to act effectively in handling four troubled life insurance companies that ultimately went insolvent, according to a report by the General Accounting...

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