What types of policies were in force on the victims?
The victims were covered by the same kinds of policies all Americans use: both individual and group policies. Individual policies typically are obtained by people on their own. They contact a life insurance agent and obtain coverage to protect loved ones. Group coverage typically is obtained as part of an employees benefits package. Many employers provide coverage with death benefit protection equal to a workers salary or twice their salary. 5. How much will these terrorist acts cost the life insurance industry? It is too early to tell. Clearly, the life insurance industry recognizes that the tragedy will result in a large volume of claims. 6. Is the life insurance industry financially capable of honoring all the claims it will get? Yes. The U.S. life insurance industry is financially strong with assets and liquid reserves ready to respond to this tragedy. We have very strong solvency regulation in this country, and our regulators require that we set aside reserves adequate to meet une
