Can a Life Insurance Company Declare Bankruptcy?

Can a Life Insurance Company Declare Bankruptcy?

In the early 1980s, the worry of a life insurance company going bankrupt or insolvent was a rarity, which quickly changed during the 1990s when some well-known insurance companies were placed into receivership. In fact, insurance companies cannot declare bankruptcy; instead, they are placed into insolvency receivership or liquidation by the state’s insurance department.

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