Q. – There has been a lot talk about insurance companies going under. How do I know if my insurance is at risk?
Insurance companies whose primary business is health carry securities on their balance sheet that are shorter term in nature than a company whose primary business is life insurance or property and casualty. Health insurance carriers take the $1 in and immediately pay out $0.80 of that dollar. Life insurance companies take in a dollar with the intention of paying out the claim at a much later date. Health Insurance companies are far more liquid and flexible with their portfolio thus they, for the most part are not affected by the long term debt obligations, tied to ...