A Question On Whether Insurance Companies Will Receive Bailouts

I received a question a few days ago in response to my post in reference to insurance companies receiving bailouts.  There was an article a few days ago in the National Underwriter that refuted the concern that insurance companies would be receiving bailouts.   My answer is Yes and No. 

It is true that insurance companies did not receive direct bailout funds.   However, the insurance companies lined up to buy banks or holding companies or to start holding companies.  The Department of the Treasury allowed the insurance companies to acquire or start up holding companies that qualify as a bank for the bailout funds.  Why was this done? 

Holding companies and banks were allowed direct access to the TARP funds.  The insurance companies could then receive TARP funds indirectly.  There are no regulations on how the holding companies or banks are to use the funds.