Dear Readers,

For the past several years, the DC Department of Insurance, Securities and Banking (DISB) used the month of September to highlight the benefits of life insurance, and how this product, if used properly, can make a significant difference in the lives of residents in the District of Columbia. Although we developed several press releases on the life insurance awareness, this year was a little different. No one could have anticipated the sequence of events that occurred in the financial markets. In September, Fannie Mae and Freddie Mac were put into conservatorship by the Federal Finance Housing Agency; Lehman Brothers, one of the nation’s oldest and largest investment banking firms, files for bankruptcy protection; Bank of America Corporation, a bank holding company, acquired Merrill Lynch, one of the nation’s largest investment banking firms; a federal assistance package for American International Group (AIG), the nation’s largest insurance holding company with more than $1 trillion in assets, received a $85 billion financial package from the Treasury; Wachovia Bank is in financial distress; and now Congress recently passed the Emergency Economic Stabilization Act, which authorized Treasury Secretary Henry M. Paulson Jr. to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates.

Seems like perilous times. DISB has been monitoring this situation, and we have been attempting to reassure consumers that their money is safe in FDIC-insured banks. It is ironic this happened during September, when we encourage residents to take pause to consider their life insurance needs. The proper amount of life insurance coverage may be able to help you weather the financial storm after an unfortunate incident and you may be able to borrow money from your policy. While we tend not to advocate borrowing money against your policy’s cash value, this may be one of the only means a family has to get funds. However, we will like to assure you that we will continue to provide educational information on how to protect your assets.

In this month’s consumer newsletter, DISPATCH, read about the District’s financial markets, how to become a super consumer, and measuring the worth of a human life in terms of life insurance coverage. DISB also cautions investors against making hasty moves in this economic climate. Also, read about our upcoming events. As always, we hope our newsletters continue to provide you with useful information to keep you coming back for more.

Happy Reading!
Office of Communication and Public Affairs