Creditors started meeting last week to divvy up Conseco, a large financial-services company. Conseco―yes, another hot, mid-'90s stock―missed some interest payments on its debts. If it can't restructure fast, you'll see it flopping around in bankruptcy court. Why am I telling you this? Because Conseco owns 14 life-and health-insurance subsidiaries, with some 7 million policyholders. One of its companies specializes in coverage for long-term care, a type of policy that is just beginning to make its way in the marketplace. The status of big insurers hasn't been questioned since the early 1990s, when three major insolvencies came down. Conseco is your wake-up call.
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