GRAPEVINE, TEXAS–Securities lending programs by insurers and the way that they are conducted need to be examined, New York's insurance superintendent told other state regulators meeting here.

The issue has not been addressed by the National Association of Insurance Commissioners as a group, Superintendent Eric Dinallo said at a session of the NAIC's Life & Annuities "A" Committee.

The programs can be a "wonderfully smart use of assets but also [can leave companies] vulnerable to extreme stress," Mr. Dinallo explained as part of a discussion that mentioned problems at American International Group.

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