The existence of state guaranty associations shouldn't encourage purchases of high-yield fixed annuities from weaker life insurers, we're told. 'You can roll the dice and bottom-feed for the best rate,' an expert told us, 'but the odds of things turning out badly are likely not worth the extra interest.'

Life insurers owned or led by private equity companies, or alternative asset managers, also accounted for about 95% of affiliated asset-backed securities (ABS), half of affiliated issuer credit obligations, and one-third of other affiliated long-term investments, the NAIC said in a new report.