The insurance industry faced a crisis in 1991, with major companies being seized or downgraded. Consumers were left confused and worried about their investments. Insurance policies are not as secure as many believe, as they depend on the financial stability of the issuing company. State insurance funds provide limited protection, and changes have been made to improve safeguards. Most insurance companies invest in corporate bonds, which are secure but not as safe as Treasury bills or CDs. Clients should ask questions and seek objective advice to navigate the current crisis and prevent future problems.