The Motley Fool Discussion Boards  Previous Page  Financial
Products & Services / Annuities   Subject:  Re: Understanding
Annuities Date:  3/21/2011  12:49 PM Author:  pauleckler
Number:  410 of 438  The statement relates to all of the
promises made by the annuity contract you sign with the
insurance company. It is especially important to those who have
annuitized their contracts meaning they have assigned all of the
assets to the insurance company in return for a promise to make
regular or monthly payments to you under the contract usually
for life.  What happens if financial disaster means the company
does not have the assets to pay or goes bankrupt? The language
says you go to bankruptcy court and press your claim, but you
will probably collect only part of what is due you if anything.
As a practical matter, every state requires the industry selling
contracts in their state to maintain funds to bail out their
failing sister company contract owners. The industry claims that
so far everyone has collected on