The US Legal Reserve System (USLR) was created to ensure that no legitimate death claim could fail to be paid due to insolvency. The USLR has withstood the test of time, recessions, depressions, world wars, and financial crises to prove itself as a stable charter supporting the American life insurance industry.
Various checks, balances, and safeguards make up the anatomy of the USLR and it has proven to be effective in maintaining a perfect record for paying claims.
The State Insurance Department is vital in each of our fifty states and Puerto Rico to maintain a regular and orderly insurance market. The Departments perform regular audits, review complaints from consumers, and oversee mergers of companies that do business within its boundaries.
A prescribed percentage of each premium dollar goes into the policy owner's reserve fund. The reserve liabilities are established as financial safeguards to ensure the company will have sufficient assets to pay its claims and other commitments when they fall due. Life companies that comply with the legal reserve requirements established by the state insurance laws are known as legal reserve life insurance companies.
The RBC measures the amount of capital required to meet different elements of risk, including asset, interest rate, insurance, and business risk. A company reporting total adjusted capital of 200% or more is considered within acceptable levels. RBC ratios of 300-350% are common in the industry. Companies whose RBC ratios fall below 200% fall under regulatory controls by the state insurance departments.
Every year, all legal reserve life insurance companies submit annual statements to the insurance departments of the state in which they are licensed to do business. The format and contents of the forms used are prescribed by the State Insurance Commissioners and they are a detailed report of an insurance company's financial status that is important in evaluating the company's solvency and compliance with the insurance laws.
A prescribed percentage of each premium dollar goes into the policy owner's reserve fund. The reserve liabilities are established as financial safeguards to ensure the company will have sufficient assets to pay its claims and other commitments when they fall due. Life companies that comply with the legal reserve requirements established by the state insurance laws are known as legal reserve life insurance companies.
A legal reserve life insurance company simply does not close its doors and go out of business declaring that all policies are null and void. Legal reserve life insurance policyholders enjoy personal security safeguards unknown by other types of businesses.
An investment in The Soteria Capital Absolute Return Portfolio Series by proxy has all the assurances affixed to an over 150-year-old institution. In these uncertain times, Senior Life Settlements can provide peace of mind in knowing your hard-earned capital will be there when you need it.