WASHINGTON--After Senate Majority Leader Harry Reid's remarks that "a major insurer was on the verge of bankruptcy," an industry official stated categorically today "that there are no insurers...that are in danger because of the current financial turmoil."

But insurance stocks, many of which had previously resisted downward pressure, plunged today in reaction to concerns about the declining economy, the possibility of having troubled investments, and the general anxiety about whether the House will pass legislation providing up to $700 billion in cash for the Treasury to buy trouble assets.

For example, at 3 p.m. MetLife was down $7.92 to $40.32 after hitting a new 52-week low for the year; Hartford Insurance Group dropped to $29.50, down $8.51 after a downgrade from Fitch; XL was down $1.44 to $15.83; Allstate was down $1.47 to $42.53; Prudential dropped $4.71 to $60.09; and the Principal was down $7.09 at $30.50.

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