WASHINGTON - House investigators have scheduled for Sept. 9 a hearing on insolvent insurance companies and will likely deal with guaranteed investment contracts issued by Executive Life Insurance Corp., a House aide said yesterday.
The hearing by the House Energy and Commerce Committees' panel on oversight and investigations which had been postponed several times, will concentrate on First Executive Corp., the insolvent parent of Executive Life Insurance Corp., the subcommittee aide said.
New York officials placed Executive Life Insurance Company of New York in conservatorship in April 1991. That followed the seizure of Executive Life of California by California officials weeks earlier.
Rep. John Dingell, D-Mich. chairman of the subcommittee, warned in a July 30 letter to Securities and Exchange Chairman Richard Breeden that insurance holding companies such as First Executive Corp. used some of the same "disastrous" reporting practices used by "derelict savings and loan institutions."
Nine taxable municipal issues sold in 1986 were secured with Executive Life GICs, including securities issued in Tennessee, Colorado, Texas, Louisiana California and Nebraska.