What is the name of your state (only U.S. law)? NY
I am trustee of an ILIT whose sole asset is a life insurance policy on an individual ~85 y.o. The insurance co. that issued the policy has a stable, and current, AM Best rating of A. I also understand NY domiciled insurance companies are generally held to a higher standard and must contribute to the NY Guaranty Fund, ergo they are considered among the most financially secure. However, with all the financial institution failures in the past two years, if that trend continues for a while, I am concerned how the failure of the issuing co. effects policies within an ILIT. For example, if no successor insurance company were to step in and take over existing polices, there is hardly a chance anyone would even write a policy on an 85 y.o. with health issues. Am I correct at that point all the premiums paid to date would simply be for naught, and estate planning dependent on the ILIT effectively scuttled? Thank you.What is the name of your state (only U.S. law)?
I am trustee of an ILIT whose sole asset is a life insurance policy on an individual ~85 y.o. The insurance co. that issued the policy has a stable, and current, AM Best rating of A. I also understand NY domiciled insurance companies are generally held to a higher standard and must contribute to the NY Guaranty Fund, ergo they are considered among the most financially secure. However, with all the financial institution failures in the past two years, if that trend continues for a while, I am concerned how the failure of the issuing co. effects policies within an ILIT. For example, if no successor insurance company were to step in and take over existing polices, there is hardly a chance anyone would even write a policy on an 85 y.o. with health issues. Am I correct at that point all the premiums paid to date would simply be for naught, and estate planning dependent on the ILIT effectively scuttled? Thank you.What is the name of your state (only U.S. law)?