Copyright 2000 Kyodo News Service

　

Japan Economic Newswire

　

August 29, 2000, Tuesday

　

LENGTH: 256 words

HEADLINE: Rehabilitation is choice for failed Taisho: administrator

DATELINE: TOKYO, Aug. 29 Kyodo

BODY:

The administrators of failed Taisho Life Insurance Co. are considering letting it rehabilitate itself under a recently revised law instead of having another entity take over its insurance contracts, the head of one of the administrators said Tuesday.

'We will ask for (application of) the special rehabilitation law if necessary. The Financial Services Agency (FSA) understands (our position). Everything depends on the results of investigations of Taisho Life assets,' Ikuo Uno, chief of the Life Insurance Association of Japan, told a news conference.

This would be the first application of the special rehabilitation law since its revision in May.

The FSA on Tuesday named the industry group, certified public accountant Hiroshi Misawa and lawyer Akira Kosugi as the administrators of Taisho, which the agency ordered Monday to halt most of its operations following the arrest of two board members in a case of suspected fraud.

The two suspects are executives of Taisho's largest shareholder, Claremont Capital Holding Inc., which played a key role in having Taisho strengthen its capital base.

To minimize disadvantages to Taisho policyholders, Uno said, the administrators would seek financial assistance from the Life Insurance Policyholders Protection Corp. of Japan, an industry body for protecting life insurance policyholders.

The revised special rehabilitation law, which took effect at the end of June, paves the way for life insurers to reduce guaranteed yield even when they have not gone bankrupt.

LANGUAGE: ENGLISH

LOAD-DATE: August 29, 2000