Insurance Company Bankruptcy. Best, standard & poor’s, and moody’s. The first thing you can do to protect yourself from a life insurance company’s bankruptcy is to choose a licensed insurer that is in good financial health.
Based in california, the life company had to file for bankruptcy in 1991 following disastrous investments in junk bonds. How does bankruptcy affect my insurance policies. The state where the insurance company headquarters is located will work with the insurance company to ensure that.